MAY 31, 2011

IN THIS ISSUE

DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

REGULATORY & LEGAL UPDATES

FTC Finds Broad Compliance Among Auto Dealers on Notice Requirement

 

LEGISLATIVE UPDATE

HB Passed Overwhelmingly in Colorado Senate and House

 

UPCOMING SEMINARS

Upcoming Seminars

Colorado Dealer Counsel - Luncheon & Issues Briefing

Colorado Dealer Compliance Guide Roll-Out and Training


CALENDAR OF EVENTS
Upcoming Events

CADA Annual Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishmens

 

THE AFTERFACT

All the News That's Fit to Email!


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles
from the Open
Road e-newsletter.

CLICK HERE for Bulletin archives.

CLICK HERE for Colorado Auto
Outlook
archives.

CLICK HERE for Denver Auto
Outlook
archives.


ONLINE REGISTRATION

CLICK HERE to register online
for various CADA seminars & events.


MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources
.

CLICK HERE for a list of current
Endorsed Vendors/Programs
.

CLICK HERE for a list of current
Allied Members
.

CLICK HERE for an order form for
CADA forms
.

CLICK HERE for information on all member services.



www.nada.org


www.aiada.org

CLICK HERE for NADA
Regulatory Affairs information
.


STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division
of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section
of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment
website.




Visit us at www.coloradodealers.org.


CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.

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CADA STAFF

CLICK HERE for a CADA staff listing


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org

CLICK HERE or scroll to the bottom
of this page if you want to be
added or removed from our list.


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ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Vendors/Programs
.

 

 

 


If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.


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 AUTO INDUSTRY NEWS AT A GLANCE

Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.



…more news articles are included at the end of this issue.




FTC FINDS BROAD COMPLIANCE AMONG AUTO DEALERS ON NOTICE REQUIREMENT
Holder in Due Course Rule
FTC Release, 05/16/2011

As part of its ongoing efforts to ensure that auto dealers’ financing practices comply with federal consumer protection laws, the Federal Trade Commission has completed investigations of nearly 50 automobile dealers across the country to assess their compliance with the FTC’s Rule Concerning Preservation of Consumers’ Claims and Defenses, more commonly known as the “Holder in Due Course” Rule. The FTC’s investigations found broad compliance with the Rule among auto dealers.

The Holder in Due Course Rule protects car buyers when dealers sell the buyers’ credit contracts to other lenders. Specifically, the Rule preserves consumers’ rights to raise claims and defenses against purchasers of consumer credit contracts – with automobile sales, it protects consumers who buy cars from dealers on credit. When dealers sell credit contracts to lenders, consumers are obligated to pay the lenders instead of the dealers. Under the Rule, if a dealer engaged in fraud or made misrepresentations in selling a car on credit, a consumer could raise the dealer’s conduct as a defense to the lender’s demand for payments. 

The Rule requires dealers to include in their credit contracts a notice that lenders who buy the contracts are subject to the claims and defenses consumers may assert against dealers. It effectively makes lenders liable for dealers’ conduct, and gives them an incentive to work with reputable dealers.

The Commission also reminds auto dealers that their obligations under the Holder in Due Course Rule will expand in the near future. The Rule currently does not require dealers to include the notice in credit contracts exceeding $25,000 in the amount financed. However, as a result of the Dodd-Frank Act of 2010, as of July 21, 2011, the Rule will require the notice in these contracts up to $50,000. The Commission encourages auto dealers to review their contracts to ensure that they are in compliance with the expanded scope of the Holder in Due Course Rule.

CLICK HERE
for the full FTC release.

* * * * * * * *

If you have questions on any legal or regulatory topic, please contact:

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


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HB 1188 PASSED OVERWHELMINGLY IN COLORADO SENATE AND HOUSE

House Bill 1188 was successfully passed on its Third Reading on the Senate floor, Monday, May 9th. The bill passed with a 33-1 vote with one legislator absent.  Two changes were made to the bill prior to its passage in the Senate Business Labor and Technology Committee.

The Colorado House of Representatives concurred with the Senate changes on Tuesday, May 10th and on an overwhelming vote of 61 to 4, HB 1188 was passed.

State Senator and bill sponsor, Linda Newell selected a dealership from within her district for the bill signing.

HB 1188 was officially signed on Friday, May 13th at 4:30pm at John Elway Chevrolet by Governor Hickenlooper (pictured below).

House Bill 1188 – Tightens basic dealer protections and prevents manufacturers from requiring expensive new facility upgrades when expensive facility upgrades have been completed at request of manufacturer in recent years.  More detail on HB-1188 is shown below.

More on HB-1188 – Franchise protections:

  • HB 1188 will provide stability for Colorado consumers, auto dealers and their employees by shielding them from unnecessary and costly facility mandates frequently required by auto manufacturers.
  • Auto dealers are consistently pressured by manufacturers to significantly upgrade the exterior and interior of their showrooms and service facilities – and all of these improvements are mandated at the expense of the local dealer.
  • HB 1188 will provide a "safe haven" for dealers from pressure, coercion and penalties by manufacturers if they have built a new facility, or made upgrades to an existing facility, within the past seven (7) years.
  • Other protections in HB 1188 include: 

(1) 90 day notice provision to a dealer by the manufacturer if franchise is going to be terminated;
(2) 90 day notice provision to a dealer by the manufacturer if the dealer's geographic region where they are expected to sell cars is going to change;
(3) Prohibition of a loophole in franchise agreements that allows manufacturers to control the dealer's real estate after there is no longer a franchise agreement in place.
(4) Requires the Executive Director of the Department of Revenue to issue a cease-and-desist order when a dealer complains that a manufacturer is illegally ending a franchise agreement.

· The segment of the bill (HB0-1188) that ensured all provisions of Colorado’s franchise laws apply to all manufacturer/dealer sales and service agreements, regardless of when initiated, was removed from the bill at the sponsor’s request following significant manufacturer pushback and ramped-up opposition lobbyist engagement.

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COLORADO DEALER COUNSEL - LUNCHEON & ISSUES BRIEFING

Legal, regulatory and legislative briefing on issues of importance to attorneys representing Colorado automobile dealers

Monday, June 6, 2011, 12:00pm – 2:00pm

William D. Barrow Building
CADA Headquarters
290 East Speer Blvd
Denver, Colorado 80203

Topics to be covered:
· Latest dealer franchise protection improvements (Effective 5/13/2011)
· Lien release bill (Effective4/20/2011)
· 2012 legislative agenda (Ideas/suggestions)
· State regulatory and compliance updates
· Delivery & Handling fees, lates tlitigation and discussions of recent dealer issues
· Colorado Dealer Compliance Guide (due for release June 21st)
· Open discussion; any areas of concern

Register ONLINE!

TO REGISTER, PLEASE RETURN THE REGISTRATION FORM AND PAYMENT OF $79 PER
PERSON, BY JUNE 2, 2011

*Includes lunch. Email: lauren.stadler@coloradodealers.org

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COLORADO DEALER COMPLIANCE GUIDE ROLL-OUT AND TRAINING!
NEW GUIDE SUMMARIZES, IN ONE PLACE, KEY AREAS OF STATE COMPLIANCE AND ASSEMBLES VALUABLE RESOURCE INFORMATION

Key dealership staff training for overlooked compliance areas and risk:

  • Receive the new Colorado Dealer Compliance Guide AND training to review key highlights—for a reduced, bundled price
  • Compliance is critical in every area of your dealership; minimize exposure to lawsuits

Mulitiple dates and locations see calendar below for more information.

Register Online!

CLICK HERE to fill out a registration form.

New compliance guide developed jointly by CADA and Colorado dealer attorney:
Michael Dommermuth, MCGloin, Davenport, Serverson & Snow, P.C.
AN ATTORNEY WHO SPECIALIZES IN REPRESENTATION OF MOTOR VEHICLE DEALERS.  MICHAEL IS A MEMBER OF NATIONAL ASSOCIATION OF DEALER COUNSEL, A NATIONAL ORGANIZATION OF ATTORNEYS WHO REPRESENT DEALERS.  MICHAEL EARNED A BACHELOR’S DEGREE FROM PURDUE UNIVERSITY IN 1980 AND JURIS DOCTORATE FROM THE UNIVERSITY OF INDIANA AT BLOOMINGTON IN 1983.  MICHAEL HAS 26 YEARS OF EXPERIENCE REPRESENTING DEALERS THROUGHOUT COLORADO AND THE ROCKY MOUNTAIN WEST.  MICHAEL’S FIRM PROVIDES FULL SERVICE REPRESENTATION OF MOTOR VEHICLE DEALERS INCLUDING, BUY/SELL AGREEMENTS,  LITIGATION, FINANCE, FRANCHISE, MANUFACTURER DISPUTES, BANKRUPTCY, DEALER SUCCESSION, CLASS ACTIONS AND FEDERAL AND STATE COMPLIANCE.  MICHAEL HAS SUCCESSFULLY DEFENDED DEALERS IN CLASS ACTIONS CHALLENGING D&H AND THE FOR DAMAGES UNDER THE TELEPHONE CONSUMER PROTECTION ACT.

* * * * * * * *

aTO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.coloradodealers.org/registration
Event Description
Date/Time
Location

Colorado Dealer Counsel - Luncheon & Issues Briefing

PASS ALONG TO YOUR OUTSIDE COUNSEL!

Monday, June 6


William D. Barrow Building
CADA Headquarters
290 East Speer Blvd
Denver, Colorado 80203

Register ONLINE!

CLICK HERE to fill out a registration form!

Colorado Dealer Compliance Guide Roll-Out and Training



By Michael Dommermuth, McGloin, Davenport, Severson and Snow, P.C


Training will highlight key areas of state compliance. 

Register Online!
CLICK HERE to fill out a registration form.

Colorado Springs

Tuesday., June 21
7:30am to 10:00am
Breakfast included


Antlers Hilton Colorado Springs
**Colorado Springs dealers should register directly with CSADA, Ann Winslow, 719.473.1465
Register Online!
CLICK HERE to fill out a registration form.

Pueblo

Tuesday., June 21
12:00pm (Noon)-2:30pm
Lunch included


Marriott Hotel Pueblo
Register Online!
CLICK HERE to fill out a registration form.

Loveland

Wednesday, June 22
7:30am to 10:00am
Breakfast included


Embassy Suites Loveland
Register Online!
CLICK HERE to fill out a registration form.

Denver



Wednesday, June 22
12:00pm (Noon)-2:30pm
Lunch included


William D. Barrow Building
Register Online!
CLICK HERE to fill out a registration form.

Glenwood Springs



Thursday, June 23
7:30am to 10:00am
Breakfast included


Hotel Colorado
Register Online!
CLICK HERE to fill out a registration form.

Grand Junction

Thursday, June 23
12:15pm-2:45pm
Lunch Included


Doubletree Hotel
Register Online!
CLICK HERE to fill out a registration form.

If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or lauren.stadler@coloradodealers.org



Event Description
Date/Time
Location

CADA
Annual Golf Event



Monday, September 12, 2011

Usually a 12:00pm Shotgun Start


Green Gables Country Club
6800 West Jewell Avenue
Denver, 80232

Registration coming soon!




LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!

Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.


THE AFTERFACT


If you want to be added to our mailing list, please CLICK HERE.

To remove yourself from this list, click on this link.

Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org