Barrie: Test Your Knowledge on Industry Recalls

November 20, 2024

By Barrie Charapp Beaty
Charapp & Weiss, LLP
bbeaty@cwattorneys.com

The auto industry has lived through an unprecedented number of recalls in the last two years. There is little indication this trend will slow. How well do your teams understand federal recall issues? Here is a quiz to help.

  1. We have some new cars in inventory that have open recalls. We are awaiting parts. We cannot deliver those vehicles. True or False?
  1. When new vehicles are shipped to us, we check their recall status before putting them into inventory. That should cover us when we deliver the vehicle. True or False?
  1. We have some used cars with open recalls. We may sell those under federal law. True or False?
  1. We have some used cars with open recalls. We can advertise them and sell them as we would any other used car. True or False? 
  1. If we sell a vehicle with an unremedied recall, we should disclose it. True or False?
  1. We disclose open recalls on used cars when we sell them. That should protect us from all lawsuits. True or False?
  1. We are a Honda dealer. We have a Honda used car in inventory on which Honda has notified us of a stop sale. I should not sell that used car. True or False? 
  1. We are a Ford dealer with a used Honda in our inventory with an open recall on which Honda has issued a stop sale. Honda cannot stop me from retailing this vehicle. True or False?
  1. In the service department, our service advisors should check for the recall status of our brand vehicles that come in for service. If we find open recalls, we should advise the customers. True or False? 
  1. We have a used vehicle with an open recall. I cannot sell it as a certified pre-owned vehicle. True or False?