The Consumer Financial Protection Bureau held a field hearing on October 7, 2015 in Denver, CO. The Bureau used the event to announce that the CFPB is empaneling a Small Business Review Panel so it can start the process of proposing a rule to ban use of arbitration provisions to block class actions. The event
Have a Man-Made Disaster Plan
Every dealer should have a disaster recovery plan. You never know when a natural catastrophe will require the dealership to recover from crippling occurrences like floods and hurricanes. Natural calamities are not the subject of this article, however. This is about a dealer’s need for a recovery plan for a man-made catastrophes. Dealers are not
U.S. DOJ Guidelines on Individual Accountability and What They Mean for Car Dealers
The U.S. Department of Justice generated significant publicity in September 2015 by announcing a change in policy in business investigations. In a memorandum to prosecutors throughout the DOJ covering virtually all criminal and civil investigations of business wrongdoing the DOJ stated it would focus on individuals. The DOJ appeared to undercut this policy initiative almost
Are you EMV Compliant?
On October 1, 2015, changes in a retailer’s liability for fraudulent credit card use will go into effect. Credit card issuers will reserve the right to shift liability for fraudulent credit card use to the retailer if the card used had new chip technology, but the retailer did not have updated processing equipment to read
NLRB Joint Employer Decision
On August 27, 2015, the federal National Labor Relations Board issued a 3-2 decision that the owner/operator of a California-based recycling facility is a “joint employer” for collective bargaining negotiations with employees of a temporary staffing company. The ruling supplants the NLRB’s previous test that required the “actual exercise of control” over workers for a
Independent Contractor or Employee?
We have written often about the federal government’s push for businesses to consider their workers as employees rather than independent contractors. Recent developments show there is no hotter personnel button for the federal government. The spotlight is on companies that pay workers on a piece-work basis. As an example, The Washington Post recently ran an
Limiting F&I Income
You have probably read about the consent order between the federal government and American Honda Finance Corp. AHFC agreed to repay $24 million to minority buyers to settle a Department of Justice complaint arising from acquisition of customer finance paper from dealerships. The critical part of the consent order, however, is the agreement by AHFC
Compliance Triage
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 today are overwhelmed by challenges because of new government mandates and actions. It is time to prioritize your obligations to
Damage to New Vehicles Procedure
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 retail price as defined in 15 U.S.C. §§ 1231-1233, as measured by retail repair costs, must be disclosed to the
Preapproval of Dealership Ownership
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. Some franchisors will even require this if the dealer wishes to designate a franchise successor, which should be done. The