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 gets from time to time. See how your reaction compares to the law. Q: The Customer won’t sign the privacy notice. What
The Importance of Keeping Your Insurance Policies
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 legal actions against dealers. This doctrine can be used by a court to allow the presentation of a stale claim
FTC: The Beast is Stirring (Especially Over Internet Advertising)
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 to propose greater regulation of the industry. However, it has also announced that it is not going to wait to ramp
Get Ready for Tax Changes on July 1st
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 conducting its annual Legislative and Legal Update webinar on Tuesday, June 11th from 11:00 am until 1:00 PM. We will
Distracted Driving: Don’t be a Statistic
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 more time out of a 24 hour day. On the surface, we think driving is easy- a “mindless activity”. So,
Dealer Processing Fee on Exercise of a Lease Purchase Option?
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 so, the practice could lead to liability. Is it Authorized? The Consumer Leasing Act and its implementing rules in Regulation
Airbag Deployment is Treatment
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 is no longer legal to deploy and then dispose of airbags in the trash. Based on this enforcement action, the
Do You Have a Cash Reporting and Money Laundering Policy?
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 from a used car dealer alleged to have structured otherwise reportable transactions. The government has not indicted the dealer, but
Employees are also liable for Torts
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 parties to a contract. In the case of a car dealership, a contractual claim would be between a customer and the
Sweepstakes Promotions
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 than just providing the prize. Dealers must be careful about the sweepstakes rules. Federal and state laws categorize certain types