DEALER NEWS & INFORMATION
REGULATORY & LEGAL UPDATES
– New Export Provision In Colorado Franchise Law
– Legislators Rally Late In Session to Introduce Second Dealer Rights Bill
– Business Groups Defeat Visa Bill on the Floor of the Senate
– FREE WEBINAR: Employee vs. Independent Contractor: How to Tell the Difference
– Are You Prepared to Service Hybrid Vehicles?
– CADA 2010 Annual Golf Tournament
–All the News That's Fit to Email!
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AUTOMOTIVE NEWS AT A GLANCE
Listed here are several articles pertaining to the
Dealerships are often hit with charge-backs by manufacturers when a car they sold is later taken out of the country, often unbeknownst to the dealership. A new provision in the Colorado Franchise Act passed this current legislative session gives dealerships more protection in this area. Those new protections took effect March 22, 2010.
A recent article by a well-respected dealership attorney provides more guidance on this topic:
Vehicle Exports – Protecting Your Dealership
Sales of new vehicles that wind up being exported are a continuing problem for dealers. Generally, franchisors prohibit the sale of new vehicles for export within a specified time period following sale. Penalties for violating these policies can be expensive. New vehicles that wind up as exports can lead to chargebacks for fees and for holdback, incentives, and similar amounts paid or payable to a dealer. Also, where allocations are an issue, a sale followed by an export can lead to loss of allocations.
Some states have passed statutes designed to give dealers protection in the event that they sell a new vehicle in good faith to a domestic buyer, but the vehicle winds up being exported. Where the dealer has taken steps to reasonably satisfy itself that new vehicles it sold were not intended for export, the dealer should not be penalized. Generally the laws require the franchisor to prove that the dealer had reason to know about the plans for export and that the dealer didn’t use appropriate due diligence.
These laws are designed to protect dealers against occasional sales where they had no knowledge of buyers’ plans to export. They are not complete insulation from liability if vehicles are exported. Instead, they are protection against a franchisor’s chargeback to a dealer for an export where the dealer used due diligence and did not have knowledge of the intention to export.
Even in states where these laws are in place, dealers must still recognize the need to comply with franchisors’ export policies. Here are some things to consider. . . .
CLICK HERE to review the entire article.
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DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance
LEGISLATORS RALLY LATE IN SESSION TO INTRODUCE SECOND DEALER RIGHTS BILL
On Friday afternoon, Sen. Shawn Mitchell (R-Broomfield) and Sen. Chris Romer (D-Denver) introduced a late filed piece of legislation that would substantially increase penalties against automakers that do not comply with HB 1040, CADA's dealer legislation passed earlier this year. The new legislation, SB 201, would provide authority for the Executive Director of the Department of Revenue to impose fines between $10,000 and $25,000 per day on any automaker who refuses to honor Colorado statutes specific to dealers terminated in bankruptcy. This legislation was assigned to the Senate Business, Labor and Technology committee and is expected to be heard this week. The bill is being sponsored in the house by Rep. David Balmer (R-Centennial) and Rep. John Soper (D-Federal Heights). To view a copy of SB 201, please CLICK HERE.
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BUSINESS GROUPS DEFEAT VISA BILL ON THE FLOOR OF THE SENATE
SB 188, sponsored by Sen. Josh Penry (R-Grand Junction) and Sen. John Morse (D-Colorado Springs), prevented the imposition of surcharges on consumers who use debit cards. The bill was defeated on the floor of the Senate last week. While the bill sounded benign, the trouble was it did not regulate Visa and Mastercard's ability to impose and increase these very same surcharges on retailers who, based on the popularity of debit cards, have no choice but to accept them. Had the bill passed, it would have put the squeeze on all Colorado retailers who would have been forced to absorb any similar fees imposed by the card issuing financial institutions. CADA worked in conjunction with the Colorado Retail Council, Verizon, Wal-Mart and various liquor store owners to defeat this harmful legislation.
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Overall Objective: To teach automotive technicians basic safety for handling hybrid batteries and working with hybrid vehicles.
Where: Arapahoe Community College – 5900 South Santa Fe Drive, Littleton, CO 80120 - Automotive Department
Participants that complete the 40 hours will receive a certificate from Arapahoe Community College Corporate Learning Division.
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Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205