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
Telecommuting as an ADA Accommodation
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
FTC Buyers Guide: How Well Do You Know the Requirements?
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
The AAA’s Consumer Clause Registry
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
Right of First Refusal and Buyer’s Expenses
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,
Joint Employer Liability: What it Means for Auto Dealers and Their Franchisors
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
NHTSA’s Recall Information Site
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
NLRB: Be Careful When Disciplining Employees for “Disloyalty”
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
Purchaser’s On-Line Systems Filing Fee
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 fee. In 2003, the Virginia General Assembly enacted legislation to incentivize on-line processing of titling and registration of vehicle by
Myths: Supplier Contracts
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 it is for any other aspect of your business. Dealers often sign vendor contracts after just a cursory reading. They