Newsletter + Article Archives

Everything You Need to Know to Be a Successful and Competitive Automotive Dealer in Virginia.

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Right of First Refusal and Buyer’s Expenses

September 17, 2014

Dealer sales and service agreements of all major franchisors provide for a right of first refusal (“ROFR”) for the factory when a dealer contracts to sell the dealership. Virginia law regulates a factory’s exercise of its ROFR. Manufacturers are increasingly exercising ROFR rights, whether to achieve marketing goals, to control who may be a franchisee,

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Joint Employer Liability: What it Means for Auto Dealers and Their Franchisors

September 17, 2014

This summer, the general counsel of the National Labor Relations Board (NLRB) sent shockwaves through the boardrooms of franchisors. The NLRB’s head lawyer issued a memorandum on 180 pending unfair labor practice complaints against the fast food chain McDonald’s and its franchisees which directed the Board’s regional offices to treat the McDonald’s franchisor and franchisees

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NHTSA’s Recall Information Site

September 17, 2014

The National Highway Traffic Safety Administration has implemented a free internet search tool (www.safercar.gov) to determine whether vehicles have been recalled but not repaired. The recall information through the VIN search tool is supposed to be provided to NHTSA by a manufacturer conducting a recall. At www.safercar.gov, the public may check the status of recalls

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NLRB: Be Careful When Disciplining Employees for “Disloyalty”

September 17, 2014

The National Labor Relations Board has been critical of policies and personnel practices that lead to disciplinary actions against employees for criticizing employment conditions. According to the NLRB, an employer cannot prevent or inhibit “concerted activity” by employees, and discipline for unfavorable comments about salaries, working conditions, job requirements, and similar subjects can unlawfully prevent

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The AAA’s Consumer Clause Registry

August 17, 2014

As of September 1, 2014, The American Arbitration Association (AAA) requires any business that provides for or intends to provide for the AAA to administer its consumer arbitrations to register the business’s consumer arbitration clause with the newly-created Consumer Clause Registry. AAA developed the Registry to provide public access to information about the AAA’s consumer

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FTC Buyers Guide: How Well Do You Know the Requirements?

August 17, 2014

The FTC buyers guide has been around for so long that many dealers take for granted that their personnel understand the requirements. That can be a costly mistake. Like the cash reporting rule enforced by the IRS, the Used Car Rule enforced by the FTC is regularly the subject of compliance sweeps leading to consent

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Telecommuting as an ADA Accommodation

August 14, 2014

Employers frequently ask about the obligations imposed by the Americans with Disabilities Act (“ADA”) for a “reasonable accommodation”. The ADA requires employers to provide a reasonable accommodation for an employee’s disability unless doing so would impose an undue hardship on the business. A reasonable accommodation can include assistance or changes to the work environment such

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Electronic Signatures

July 15, 2014

Plaintiffs’ attorneys have a new tactic for challenging retail installment sales contracts in the deals with which their customers are no longer happy. “The signature just doesn’t look like my client’s signature on the rest of the documents,” they claim. “It must be forged.” Then comes the demand that the dealer buy back the car

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Cash Reporting Compliance: Have A System

July 15, 2014

Don’t think that IRS employees are busy looking for lost emails. Agents are in the field, auditing. And car dealers are regular targets of audits – particularly of cash reporting. Every dealer should know about filing Internal Revenue Service Form 8300. That form is due when the dealership receives cash or cash equivalents of more

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