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Like many retailers, you are looking for ways to make visits to your dealership enjoyable for your customers. You download mood music from the internet to play in the showroom and buy DVDs of popular
Here are two situations dealers sometimes face. What do you think about the suggested easy solutions? Situation 1: You hire a sales manager. He wants a monthly income guarantee for three months to develop the
General Motors has launched a highly visible campaign for its dealers to have succession plans in place. You may ask, “Why does General Motors care?” GM and other vehicle franchisors care a lot that successful
2014 was another strong year for motor vehicle dealers. The experts are predicting an especially strong year for 2015. Not to be contrarian, but when conventional wisdom is a forecast for spectacular results, it is
As of January 1, 2015, The Occupational Safety and Health Administration (OSHA) requires employers to notify it of all work-related fatalities, inpatient hospitalizations of one or more employees, amputations, and losses of at least one
The FTC Information Safeguards Rule has been around for more than a decade, so most suppliers will agree to protect the non-public personal information (“NPPI”) of your customers. However, a supplier does not have to
Dealers facing potentially expensive and harmful conflicts often question when it might be wise strategically to admit some wrongdoing. “Shouldn’t I show how cooperative I am?” they ask. “Won’t I get a lot by giving
Rick Gallaer Wins National Recognition for Community Service and Industry Accomplishments at NADA Convention (New York, NY, October 23, 2014) – The nomination of Rick Gallaer, president of Pomoco Chrysler Jeep Dodge of Newport News
Dealers are correctly concerned about the Consumer Financial Protection Bureau. Formed in reaction to the most recent financial downturn, the Bureau gives consumer advocates license to pursue many restrictions on financial businesses they have eyed
Here is a situation that arises from time to time: your dealership is selling a car to a customer who wishes to pay $8,000.00 in cash. The customer has said things that have raised the
You spot delivered a vehicle expecting to assign the contract to a finance source. Unfortunately, the finance source declined the assignment because the customer misstated monthly income, you could not verify information provided, or any
We have recently received questions concerning the fee that dealers charge their customer for on-line titling and registration. A little refresher information seems in order. But first a little review of the implementation of the
We write regularly about myths in the car business – things people think are true but are not. Unfortunately, some myths are potentially damaging, and that is as true for your dealership’s supplier agreements as
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
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
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
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
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
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
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
A sales assistant goes into the office of the dealership’s general manager. She claims she is being sexually harassed by one of the outside vehicle wholesalers with whom the company does business. She says that
At any given time, any given employer may be singled out for a civil investigation by the Department of Labor! These audits aim to ensure that employee benefits plans are in compliance. With all of
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
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
IRS Guidance on Manufacturer Imaging Payments The Internal Revenue Service has issued guidance on tax treatment of factory payments for facility upgrade programs. The guidance considered three types of situations in which a franchisor pays
Are you being compensated by your factory when you must ground new vehicles because of recalls? The National Highway Traffic Safety Act requires a manufacturer or distributor of a new motor vehicle not yet sold
The federal Fair Debt Collection Practices Act is a powerful weapon for a consumer who feels abused by a debt collection agency. The Act contains detailed provisions prohibiting collectors from using harassing or abusive tactics,
Dealers have given necessary attention to Tesla’s attack on state franchising and licensing laws. That is not the only threat to their business model that dealers face. Under the radar, third party lead providers are
In this federal election year, you will hear political rallying cries like “income inequality”, “income unfairness”, and “damage to the middle class”. President Obama has made these themes in his speeches to support his party’s
Dealers know better than anyone that consumers increasingly rely on information found online, whether true or not. Bad online reviews hurt. So what can you do about bad reviews you think are bogus? For many
In January 2014, the Federal Trade Commission stepped up its recent, ongoing regulation of car dealer advertising and announced consent orders with nine dealers. Showing the agency’s nationwide reach, the dealers were in California, Georgia,
It has been nearly a year since the Consumer Financial Protection Bureau issued its March 2013 bulletin that created an F&I firestorm. It put the financial institutions under CFPB jurisdiction on notice they could be
We have written about myths in the car business – widely-held misbeliefs of dealership personnel about the law. Lawyers representing employees or customers in disputes with dealers have their own myths. Let’s examine some of
Congress enacted the Telephone Consumer Protection Act in 1991. The law was designed to restrict the activities of telemarketers in making unsolicited calls. The law provides the right for call recipients to file individual lawsuits
Who is in charge of compliance at your dealership? It’s likely that there is a person in overall charge, in charge of sales, in charge of service, in charge of parts…you get the idea. Given
2013 was a solid year for car dealers. Buyer demand is returning. Factories are producing vehicles customers want. Credit and leasing terms facilitate sales. Barring some unforeseen problems, the strong sales atmosphere should continue in
Many dealers use promissory notes to obligate a customer upon delivery of the vehicle when the customer wishes to return with his or her own funds or with the proceeds of a loan from a
The year 2010 saw the acceleration of a disturbing trend in employment law for dealers and employers. The increase in lawsuits challenging employers on wage and hour law compliance continued. The U.S. Labor Department has increased its
By January 1, 2011, a dealer must have in place a program for compliance with the FTC’s Risk Based Pricing Rule. The Rule was adopted based on a provision in the 2003 FACT Act which requires
Every dealership should have an organized plan for ordering and managing vehicle inventory. This includes ordering, receiving units, delayed billing, and relieving units from floor plan accounts. In this article we will address some best practices
A leading industry publication recently published an article lauding the success of “certified pre-owned” programs of some large dealer groups. While some dealers may have great success with CPO programs, there are dangers inherent in any
This is a reminder that Virginia law states that all information must be clearly visible on mounted license plates. License plate frames, such as those with dealership information, cannot obscure or cover any portion of the
During 2011, you will be hearing a lot about the Dodd-Frank Act. Even though dealers are exempt from the direct jurisdiction of the Consumer Financial Protection Bureau that is created by the Act, it still completely
We all hope that 2011 will be a year of solid recovery. Many dealers saw the 2009 expense cuts kick in fully in 2010, leading to a better profit year. 2011 can be even better as sales
The last five years have seen an onslaught of federal laws and regulations affecting your business. The trend does not appear to be slowing. In prescribing these laws and regulations, the government makes assumptions about your dealership
Has your dealership ever had the curse of the cat people put on it by your franchisor? You have if you have ever made this phone call to your lawyer or to VADA: “Help! The manufacturer has
As little as five years ago, you may have snorted at the suggestion that social media would be important for your business. “Facespace…bah! What moron spends his days on that nonsense?” Today, many of your employees regularly
Over the next few weeks, you will probably see stories in industry publications that the U.S. Department of Labor has reversed its position and that service writers are no longer exempt from overtime requirements. More importantly, your
Your salespeople probably listen regularly to your customers’ concerns about protection of their private information. You’ve put in place safeguards to protect that information as required by federal law, and you notify customers of your policy
All dealers watch for trends in the auto business. From time to time you are sure to hear about the fearsome threat of class actions. Unless you have been involved as a defendant in a class action,
An adjustment in Virginia’s abandoned motor vehicle law, recently signed by Governor McDonnell, means changes for automobile dealers who operate repair shops, self-storage facilities or tow-truck businesses. These businesses may no longer use DMV’s online
Recently, we sat down with one of our Team VADA Program Partners to talk about the value of a Team VADA Partnership. Doug Avery is the F&I Executive Sales Manager for Virginia for Zurich, N.A. So
The Virginia General Assembly approved a one-year extension on the HOV-lane exemption through June 30, 2012, so vehicles registered with clean special fuel license plates may continue to use certain High Occupancy Vehicle (HOV) lanes
Are you looking for ways to drive down insurance expenses in your dealership? Would you like to keep your employees healthy and reduce lost work-time due to illness or injury? Would you like to improve employee
Now that August is here, there are some revisions to forms that you use in your dealership of which you should be aware. Adverse Action and Risk Based Pricing Notices As of July
Often, a dealer will be presented with the question that will require a quick decision. The right answer may mean the difference proper operation of the dealership or a lawsuit. Here are some questions this office
The Medicare Modernization Act (MMA) requires employers that offer prescription drug coverage, through a group plan, to notify all healthcare eligible employees whether the coverage offered is creditable or not. Creditable Coverage is defined as coverage
There is confusion over the issue of whether a dealer should provide a risk based pricing notice, followed by an adverse action notice if credit is declined. You have probably read that: (1) the notice that
Dealers regularly receive notifications from manufacturers of their area of primary sales responsibility. Whether the area is denominated as the primary market area, the area of geographical sales and service advantage, or some other term, many
The passage of the Dodd-Frank financial regulation bill last year, as well as a recent campaign by Ally Bank to encourage use of credit cards in vehicle sales transactions, has led to some misconceptions about
We don’t want to get too law-schoolish, so we will describe a tort simply: it is a civil claim that is not based on a contract or a statute. Contractual claims are generally between the
UPDATE (January 2012): NLRB Posting Requirement Delayed Again! The National Labor Relations Board (NLRB) has agreed to postpone the effective date of its employee rights notice-posting rule at the request of the federal court in Washington, D.
It’s an unusually busy Monday morning. You have the normal catch-up on the weekend business, but your manufacturer representative is visiting today and your sales manager wants to quit. Just when you think you have everything under
This summer, all GM dealers received notices concerning their Area of Primary Responsibility (APR) and, where applicable, their Area of Geographic Sales and Service Advantage (AGSSA). Some dealers challenged those market assignments. Many did not. If you are
MYTH: When a dealership sells a used car with the dealer’s warranty, the FTC buyer’s guide serves as the warranty document that the customer must receive. THE FACTS: A customer who buys a used car with the
You should keep all former garage policies with your liability, property, comprehensive and other coverages. Plaintiffs’ attorneys are increasingly utilizing the legal doctrine of equitable tolling to circumvent statutes of limitations that might otherwise bar
Used car managers like the cars they buy. Too often, they like them so much that they can’t wait to get them onto the front line, and that means no dealership employee takes the time to
The FTC has new power under the Dodd Frank financial reform law to regulate car dealers. It is about to host its third, and final, workshop this month in an attempt to determine whether it wishes
OSHA recently issued a new NEP, National Emphasis Program, which may have your business in its sights. There are not any new regulations, instead there will be a focused enforcement scheduled over the next 3
Dealers often sponsor or become involved in sweepstakes promotions. Campaigns saying things like “Win a new car from Smith’s Hupmobile at the Q109 Prize Extravaganza” are common. For a dealer, there is more to participation
Do your employees understand your cash reporting and money laundering prevention policy? If not, consider the fates of the following dealers in just the last few months. In Albuquerque, NM, the federal government seized $841,883.00
The Federal EPA recently cited a dealership for deploying airbags prior to disposal in the trash. Deploying airbags prior to placing them in the trash was, at one time, manufacturer recommended and common practice. It
A customer who leases a vehicle generally has the option to purchase it. May a dealership charge a dealer processing fee to a customer who exercises that option? While dealers may have justification for doing
These days, multi-tasking is a fact of life. Our lives are more demanding than ever before, and cell phones have made us available 24/7. Our culture’s compulsion for increased productivity has forced Americans to squeeze
The 2013 General Assembly passed a comprehensive bill to increase transportation revenue. The bill changes several of the taxes that you as an auto dealer collect from your sales and service customers. VADA will be
Dictionary.com defines “triage” as “the determination of priorities for action in an emergency.” If you are a dealer who believes that you are facing more compliance challenges than ever, you are not alone. Many dealers
Virginia Code 46.2-1571 governs the procedure for damage to new vehicles as follows: D. On any new motor vehicle, any uncorrected damage or any corrected damage exceeding three percent of the manufacturer’s or distributor’s suggested
Some franchised dealers find it advantageous for a senior manager to have “skin in the game” – an ownership interest in the dealership that enhances the manager’s rewards and risks because of the dealership’s performance.
New I-9 Form Dealers know that their packages for new hires must include an I-9 Form to verify the identity and eligibility of employees hired. The supplies of forms that dealers have in inventory may
Common law gave a landlord a lien to sell abandoned personal property left on rented or leased premises by a former tenant to cover unpaid rent or damages to the property. Over the years, states
One of the primary concerns of dealers doing business on the internet should be where problems with a sale are resolved. Can the dealer be sued in some court in a faraway state where a
If a customer must stretch to come up with a downpayment by using a credit card or a hold check, does that pose a risk for your dealership? Apparently more than many dealers realize. A
What do you call it when people who know little about an industry insist on telling those who know a lot how the industry should operate? In the federal government, it is called “business as
FTC Requests Public Comments on Used Car Rule Revisions On December 4, 2012, the FTC sought public comment on proposed changes to the Used Car Buyers Guide required by the Used Car Rule. In effect
In recent weeks, dealers have been excited by the news headlines that businesses can begin surcharging their customers for credit card purchases. Credit card issuer rules have always been a thorn in the side for
When asked for the one piece of advice to give to a dealer on franchise relations, President Ronald Reagan’s often repeated phrase that characterized his relations with the Soviet Union is a good choice –
Oh, what a difference a few years make. In late 2008, many auto pundits lamented that we might never again see sixteen million annual new vehicle sales. Proving that their memories are as faulty as
You have probably been reading a lot lately about the Consumer Financial Protection Bureau (CFPB). Its regulation of the companies that provide financing and leasing for your customers will have an impact on your business
Federal Update • The Consumer Financial Protection Bureau has issued regulations revising the summary of Consumer Rights Form that must be used by employers who do background checks. Under the Dodd-Frank financial reform legislation,
VADA Navigates the Virginia Regulatory Maze for Virginia Dealers VADA is involved in many types of issues outside the legislative process that could have negative impacts on our dealer members. Here are several matters that
Required Notices to Employees and Dependents Please contact your carrier or employment law attorney or trusted benefit advisor if you have questions about these notices. VADA Insurance is here to guide our clients and association
2011 was a better year for car dealers, and dealers hope that business will improve in 2012. Despite continuing weakness in the general economy, customers are making their way to dealers’ showrooms. There are a
Attention Dealers!! OSHA recently announced its top 10 most frequently cited violations in America’s workplaces. Every year, OSHA compiles injury information from businesses across the country to identify injury trends, the costs associated with these
What you don’t know can hurt you! In the car business ignorance is not bliss! Not knowing and benefitting from the challenges and troubles of your brother and sister auto dealers can only lead to
A common provision in contracts that dealers sign with suppliers covers choice of law, venue, and jurisdiction. Generally, supplier contracts provide that the law that will be applied to any dispute is that of the
Any new car dealer who has gone through the process of building facility improvements to meet a manufacturer’s requirements knows about “that letter” – the agreement letter by which the factory magnanimously lets the dealer
Your dealership has just been though an audit by your franchisor. You and your team sat with the auditor, you received a recap of the findings, and the amount of the chargeback was presented to
There are a lot of marketers out there claiming that they perform magic. There is no end to those who claim to have a secret formula to get customers to flock to your showroom. Whether
There has been a great deal of publicity concerning fees that financial institutions have sought to impose as a result of new laws such as the Dodd Frank financial reform legislation. Sometimes, the fees have
The Federal Trade Commission’s Red Flags Rule requires a dealer to know its customer in a credit transaction. For a number of reasons, it is important that a dealer know its customers no matter what
This is the first of a two-part series dealing with federal employment laws. It is critical that employers comply with these regulations to provide fair treatment to employees and to avoid costly penalties in the
There has been a substantial amount of publicity recently concerning backdating retail installment sale contracts. The practice can lead to serious problems. The problem can arise when a dealership spot delivers a vehicle to a
The results of the 2010 federal census are finally making their way into some manufacturers’ relevant market area descriptions for dealers. This could impact the measurement of your sales efficiency. The make-up of your RMA
You’ve seen (and maybe even used) ads claiming that a dealer will pay off customers’ trades no matter how much they owe. The Federal Trade Commission has announced consent agreements with five auto dealers who
We as know, distinct differences often exist in the values held by members of a one generation compared to the values of a different generation. Individuals experiencing the great depression have a different perspective than
Healthcare costs for a family of four will exceed $20,000 annually in 2012 for the first time, as reported by Milliman Medical Index (MMI). This is a 6.9% increase over 2011 and an increase in
In its most simple definition, talent is any individual who has the capability to make a significant difference to the current and future performance of the organization. It is no wonder that more and more
The best strategy for protecting against a franchise termination is to aggressively make your case when you get the first factory letter critical of your performance. If you wait until the termination notice is issued,
Have you noticed the upsurge in publicity concerning so-called “yo-yo sales”? About how oppressive and damaging they are for consumers? Do you think it’s a sign that these problems are suddenly multiplying? It is not.
Whenever a factory repurchases a dealer’s franchise, it always wants a computer readable copy of the dealer’s customer information. Dealers often ask why, since the factory already has information on every customer who bought a
From time to time, we like to cover critical issues in supplier agreements to which a dealer should give attention. This month we will cover indemnity provisions. What is an indemnity provision? It is an
Two Toyota dealers in overlapping markets have been involved in overly aggressive competition that has led to lawsuits, and their activities provide lessons for all dealers. One of the cases has had significant publicity. A
This time of year, many organizations begin implementing a year-end performance evaluation process for employees. Supervisors should understand that this is a critical responsibility, and they should be careful to avoid the following common traps
VADA will be conducting its annual Legislative and Legal Update webinar on Tuesday, June 11th from 11:00 am until 1:00 PM covering issues such as the comprehensive bill to increase transportation revenue.
Learn the advantages and disadvantages of having “skin in the game” – an ownership interest in the dealership that enhances the senior manager’s rewards and risks.
Virginia Code 46.2-1571 governs the procedure for damage to new vehicles as follows: D. On any new motor vehicle, any uncorrected damage or any corrected damage exceeding three percent of the manufacturer’s or distributor’s suggested
The NADA Workforce Study is now available online and we need your dealership(s) to participate. Participating dealers will receive their dealership-specific Basic Report and Industry Report at no charge.
Include a Waiver of the Landlord’s Lien Common law gave a landlord a lien to sell abandoned personal property left on rented or leased premises by a former tenant to cover unpaid rent or damages