2017 was a tumultuous year in the car business. In other words it was business as usual. Dealers have become accustomed to coping with major changes. 2018 should not be much different in terms of challenges, but it can be rewarding. Here are eighteen issues to which you should give attention in 2018. FEDERAL GOVERNMENT
Discrimination and Harassment – A Refresher
Dealers have long known of the dangers of lawsuits involving employees contending they have been the victims of discrimination or harassment. However, with today’s unprecedented focus on charges against Hollywood, media, and political celebrities, a dealer must give renewed attention to its policies and procedures. Here are ideas for a refresher as you review the
Manufacturer Construction Deadlines
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 to spend its own money to meet the factory’s mandates. Typically, “that letter” is prepared by the factory’s office of
Dueling Dealers
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 Toyota dealer in Eastern Alabama sued a neighboring Toyota dealer in the Florida panhandle. The Alabama dealer, of Iranian descent,
Performance Evaluation Traps
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 that have the potential to taint their evaluations of subordinates. Using stereotypes rather than first-hand observations (e.g., rating male employees
FCC Makes Important Changes to TCPA Rules
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 and collect damages against telemarketers for violations. Plaintiff attorneys are fans of the TCPA. The statute provides for strict
Compliance: Who is in charge?
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 the potential costs of non-compliance with the law, someone must also be in charge of compliance. It should not be
14 for ’14
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 2014. Dealers do not face issues of weak sales demand, restricted supplies of attractive vehicles, or lack of credit availability.
Adopt a Fair Credit Compliance Policy
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 held liable for alleged lending discrimination in the retail credit agreements purchased from dealers. The bulletin cited no factual support
Be Careful with Claimant’s Attorneys
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 those. Before we do that, however, let’s discuss something that dealership employees should understand. Just because a person calls claiming