JANUARY 14, 2009



Automotive News at a Glance



Delivery and Handling fees (D&H):  Attorney General Issues Letter Clarifying Disclosure Language

Legal / Regulatory Archives Index Updated

Auto Industry Division Wheels Newsletter: December Issue Available



Upcoming Seminars

Employment Law Seminar: FMLA and ADA Acts- New Federal Regulations!!

Upcoming Events

NADA Convention and Exposition

Denver International Auto Show

CADA Annual Member Golf Event


NADA 2009 Convention and Exposition

Share Your Accomplishments


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& Legal Articles
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Road e-newsletter.

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Regulatory Affairs information


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Motor Vehicles Division.

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

  • Obama cartoon video – How we got into this mess
    The Washington Post, January 10
    Ann Telnaes, who was awarded the Pulitzer Prize for editorial cartooning in 2001, has published her work in newspapers and magazines around the world.
  • The Hot New Car Is Your Old Car
    The Wall Street Journal, January 14
    For decades, Ashley Fletcher ditched his cars after they reached 50,000 miles. Now he plans to keep his 2004 Lexus RX 330 for two or three more years -- or until it reaches 70,000 miles. If all goes well, he might shoot for 100,000 miles.
  • Federal Reserve official: I was wrong
    The Pueblo Chieftain, January 10
    The chief executive officer of the Kansas City Federal Reserve was surprised when the Colorado Bankers' Association asked him to return to the Colorado Capitol to talk about the economy.
  • Ritter, Bennet visit Loveland
    Times Call, January 10
    U.S. Sen.-designate Michael Bennet and Gov. Bill Ritter drew a large crowd Friday afternoon that wanted to hear about the officials’ plans to create jobs and build up the transportation system.
  • Senator-designate outlines priorities
    Coloradoan, January 10
    Fort Collins residents met Colorado's newest senator Friday during Gov. Bill Ritter's kick-off of his annual state of the state tour in Larimer County.
  • Senate-designee charms crowds in northern Colo.
    Rocky Mountain News, January 10
    The four- day tour of the state that kicked off Friday was billed as a joint opportunity for Gov. Bill Ritter and Senate-designee Michael Bennet to talk with Colorado voters..
  • Ritter urges wide search for CSU chancellor
    Coloradoan, January 9
    CSU's Board of Governors should cast a national net as it searches for a new chancellor, and still owes a more complete explanation about the November departure of Chancellor and President Larry Penley, Gov. Bill Ritter said Friday.
  • Suthers still weighing 2010 senate run
    The Gazette, January 8
    Attorney General John Suthers says he'll decide by the end of the month on whether or not to run for the U.S. Senate in 2010.
  • About face on no-recording policy
    9News, January 10
    One of Governor Bill Ritter's cabinet members is doing an about face on a controversial policy requiring employees to tell co-workers they are being recorded.
  • Seeking the real Senate story
    Colorado Springs Independent, January 8
    Democrats and Republicans alike still are shaking their heads, incredulously, at Gov. Bill Ritter's appointment of Denver Public Schools chief Michael Bennet as the state's next U.S. senator.
  • Wake-Up Call: It's on to 2010
    Westword, January 8
    The Colorado Legislature just convened yesterday, with four months of hard work and tough budgeting choices ahead.
  • Ritter to deliver state of the state address
    Examiner, January 8
    Gov. Bill Ritter is scheduled to deliver his annual state of the state address Thursday at the state Capitol.
  • Ritter budget a day late, dollar short
    Denver Post, January 8
    Colorado faces a $630 million budget shortfall and stark options, now that half of the fiscal year is past and so much money is already spent.
  • A state of quiet determination
    Denver Post, January 8
    Gov. Ritter is confident that the legislature will solve Colorado's budget woes. We hope so, too, since the 11th hour is behind us.
  • Colorado's U.S. Attorney Stepping Down
    Fox 31, January 7
    Troy Eid, the first Egyptian-American to serve as a U.S. Attorney, has announced that he’s stepping down to return to private law practice.
  • Eid resigns federal post to run for atty. general
    Rocky Mountain News, January 7
    U.S. Attorney for Colorado Troy Eid said Wednesday he will resign his post Jan. 19 and begin campaigning almost immediately for state attorney general.
  • Automakers trying bold moves after poor sales
    9News, January 6
    Now that 2008 is out the door, auto dealers hope they can leave that dismal year in their rear view mirror.
  • Legislature opens with tough economic agenda
    9News, January 8
    Colorado lawmakers began their 2009 session Wednesday facing nettlesome economic problems but celebrating a historic milestone as the first state with blacks leading both chambers of the Legislature.
  • GMAC Makes It Easier to Get a Car Loan
    The New York Times, December 30
    The day after it received $6 billion in capital from the federal government, GMAC, the financing affiliate of General Motors, began aggressively trying to draw consumers back into dealerships on Tuesday.
  • GM, Chrysler, credit unions expand low rate plan nationwide
    The Detroit News, January 7
    General Motors Corp. is expanding its initiative to offer credit union members access to lower loan rates on top of discounts on new vehicles. GM will join Chrysler LLC in making the offer available through almost 8,000 credit unions nationwide.
  • Bush leaves fuel economy rules in Obama's hands
    The Detroit News, January 7
    The White House abandoned an effort to finalize rules to increase fuel efficiency standards through the 2015 model year, after weeks of internal debate.
  • UAW here today for contract talks in wake of automaker loans
    Detroit Free Press, January 7
    UAW negotiators from factories across America are to begin arriving in Detroit today to prepare for negotiations with U.S. automakers, which are under pressure from Congress to bring their labor costs in line with those of foreign automakers in return for more than $17.4 billion in federal loans.
  • Chrysler expenses stay a secret
    Detroit Free Press, January 7
    Chrysler LLC, operating with a $4-billion, taxpayer-funded loan from the U.S. government, isn't required to report financial information to the public and has no plan to do so.
  • '09 auto output may hit 6.2 million
    Detroit Free Press, January 7
    North American auto production may reach a "worst-case scenario" this year and next as 2009 U.S. output plunges 27% amid reductions by General Motors Corp. and Ford Motor Co., IHS Global Insight Inc. said.
  • Chrysler quality trails GM, Ford
    Detroit Free Press, January 6
    Consumer Reports magazine says Detroit automakers are "heading in the right direction," but warns in its most recent issue that Chrysler LLC appears to be falling behind General Motors Corp. and Ford Motor Co.
  • Economic meltdown, credit freeze make '08 a car sales year to forget
    Detroit Free Press, January 6
    With a global economic collapse ensnaring the housing, credit and financial markets, millions of U.S. consumers who would normally buy a new car and truck decided to save their money last year.
  • Banks Don't Need to Be Forced to Lend
    The Wall Street Journal, January 6
    Tomorrow, the House Financial Services Committee will hold a hearing to "discuss priorities" for the Obama administration's use of Troubled Asset Relief Program (TARP) funds.
  • Credit-Card Charge Offs Jump
    The Wall Street Journal, January 7
    U.S. credit-card charge-offs rose again in December as cardholder payment rates “slowed dramatically,” according to Fitch Ratings‘ latest Credit Card Index.
  • Economists Urge Fast Action on Stimulus
    The Wall Street Journal, January 7
    Experts Wednesday added a sense of urgency to President-elect Barack Obama’s call for a major economic stimulus plan, saying that tax cuts, state aid and infrastructure spending are sorely needed to revive the faltering U.S. economy.
  • Russia-Ukraine Gas Conflict Hits Europe
    Business Week, January 6
    As the spat between Russia and Ukraine over natural gas trundles towards its seventh day, European countries now are being left out in the cold.
  • Oil prices tumble near $44 on oil reserve report
    Business Week, January 7
    Energy prices tumbled across the board Wednesday after a government report showed U.S. oil reserves were much greater than expected, suggesting demand continues to fall.
  • Opening-day speech by House Speaker Carroll
    Denver Business Journal, January 7
    While Colorado has fared better than other states during the economic crisis, lawmakers can’t take the state’s fortunes for granted, Rep. Terrance Carroll said Wednesday in his first address as the new speaker of the state's House of Representatives.
  • Opening-day speech by House GOP leader May
    Denver Business Journal, January 7
    Times are tough in Colorado and the state will need to “tighten its belt a notch or two to adjust,” Mike May, GOP leader of the state House of Representatives, told lawmakers Wednesday on the opening day of their 2008 session.
  • Opening-day speech by Senate President Groff
    Denver Business Journal, January 7
    In his opening-day speech to the Colorado Senate Wednesday, Senate President Peter Groff called on legislators to address the problem with the state’s structurally deficient roads and bridges.
  • Opening-day speech by Senate GOP leader Penry
    Denver Business Journal, January 7
    Colorado Senate Minority Leader Josh Penry encouraged his colleagues Wednesday to take a measured approach to reviewing new oil and gas regulations proposed by the office of Gov. Bill Ritter.
  • Area auto dealers set to weather storm better than others in nation
    GJ Sentinel, January 10
    New-car dealers across the country are looking at hard times in the coming months, and those in the Grand Valley are no different.

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Important that dealers review current D&H disclosure language to guard against potential lawsuits

As most CADA members are aware, class action litigation was filed in Colorado in 2007, concerning Delivery and Handling (D&H) fees.  The complaints alleged that charging for “preparing documents related to the sale” constituted the “unauthorized practice of law” by the dealerships.  In Colorado, a catch-22 was created for dealers who were following the D&H disclosures approved by the Colorado Attorney General and set forth in a 1979 Assurance of Discontinuance (AOD).  The AOD stated that dealers would violate the Colorado Consumer Protection Act unless they used the D&H disclosure language which included the phrase “preparing documents related to the sale.”  To resolve this confusion, CADA obtained a letter from Attorney General Suthers last month that clarifies the AOD.  This letter states that as long as dealers are making the key part of the disclosure, it is not necessary to include the problem language that could expose dealerships to these lawsuits:  “and preparing documents related to the sale”. 

The Attorney General stated that the language crossed out below is not necessary when providing a D&H disclosure to consumers.   All that the Attorney General requires is the following:

     “This charge represents costs and additional profit to the seller/dealer for items such as inspecting, cleaning and adjusting new and used vehicles and preparing documents related to the sale. ”

     CLICK HERE for the Attorney General letter, December 22, 2008 – Clarification of      disclosure language

     CLICK HERE for the Attorney General letter, December 10, 2007 – Re-affirmation of the      Assurance of Discontinuance

CADA reminds members who charge D&H to follow the AOD guidelines; however, because the AOD only addresses the AG’s enforcement policy, and does not extend to private attorney actions, it is important to consider deleting the language that has prompted lawsuits.  Dealerships are advised to consult with their attorneys to determine how best to implement this clarification of D&H disclosures.

Dealerships that charge D&H and decide to modify their disclosure language should ensure that the disclosures are in all contract documents, including the retail installment sales contract and work sheets as well as on posters/signs displayed in showrooms.  Reynolds & Reynolds modified its Retail Installment Sales Contract last summer, and Bradford Publishing, provider of the Rocky Mountain Bank Note, will have a revised version of its form available in the coming weeks.  Both forms no longer have the “preparing documents” language.

The AOD allows for two disclosure options (which can be found in the December 10, 2007 letter from the Attorney General). Below are modified versions of the showroom signs (8.5x11 format; MS Word) for your use which can be modified as necessary depending on which option you select:

Form1:  Option #1, Parts III-1 and III-2, Amount printed on signs/posters and general disclosure in all contracts

Form2:  Option #2, Part III-3, Sticker on each car when available for physical inspection and posters/signs with general disclosure

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A reminder that an index to Open Road legal / regulatory archives is updated periodically, and is available along with prior issue archives at the following:  www.cadaopenroad.org.  The index has been updated to include all articles through the end of 2008.

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The Auto Industry Division of the Department of Revenue has published their fourth quarter issue of the Wheels newsletter. The December 2008 issue is now available.

As a reminder, the archives of Wheels are available on the Auto Industry Division’s web site.  CADA has an easy-to-remember link to AID’s home page:

(For Wheels newsletters look under “Forms and publications”, and then under “Publications”)

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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.



Tuesday, March 10, 2009

Presented by Todd Fredrickson, top Denver employment attorney

In January of 2009, the federal government saddled employers with new laws, regulations and obligations under the Americans with Disabilities Act (ADA) and Family Medical Leave Act (FMLA).  Workplace law experts expect these new laws will generate an increase in lawsuits against employers—especially in the current economic downturn as downsizing is occurring.   

  • The U.S. Dept. of Labor announced new FMLA regulations in November, 2008, the first significant changes to the regulations since 1995.  Changes effective January 16, 2009 – key changes include:
    • Implements two new forms of military family leave created earlier this year
    • Expands employer's notice requirements to include a general notice about the FMLA; an eligibility notice; a rights and responsibilities notice; and a designation notice.
    • Defines serious health condition
    • Changes to medical certification process, fitness for duty evaluations, substitution of paid leave
  • The ADA Amendments Act require almost all human resource professionals, managers, and business owners to adopt new policies and procedures in dealing with accommodation requests, as well as greatly impact employment litigation claims.
    • Overview of what has changed and how to comply; what is “disabled”?
    • What this means to employers and who will be affected
    • The risks and penalties of non-compliance; effective date, Jan. 1, 2009.

Todd Fredrickson,  Attorney, Fisher & Phillips, LLP, http://www.laborlawyers.com/
Todd Fredrickson is the managing partner of the Fisher & Phillips' Denver office. Specifically, he has defended employers against claims of discrimination, harassment, and retaliation. Todd has represented clients in both federal and state courts, the United States Department of Labor, the National Labor Relations Board, the  Equal Employment Opportunity Commission, the Colorado Civil Rights Division, and the Colorado Department of Labor.  Todd regularly counsels clients on a spectrum of personnel management issues, with the goal of avoiding litigation altogether. To that end, he advises employers on developing and enforcing proper application and interview policies, employee handbooks, and employment and compensation agreements. Todd counsels employers on compliance with federal and state wage and hour laws. Much of his practice focuses on training.

A CLICK HERE for more information
on this
training session.

* * * * * * * *


Event Description

Employment Law Seminar:

CO Springs

By Todd Fredrickson, top Denver employment attorney

Tuesday, March 10, 2009,

Noon to 2:30pm


Antlers Hilton Hotel,
4 South Cascade Ave.,
Colorado Springs,  80903, 719.955.5600

Colorado Springs dealers should register with CSADA, Ann Winslow, 719.473.1465 or abwinslow@comcast.net

For more information Click Here

Event Description

NADA Convention & Exposition

Jan. 24-27, 2009

New Orleans Morial Convention Center
New Orleans, LA

CLICK HERE for more information from the official website.

Annual CADA Legislative Reception

Thursday, February 12, 2009

5:00 to 7:30 pm

William D. Barrow Building
(CADA/MDADA Headquarters)
290 East Speer Blvd, Denver

More information coming soon!

Denver International Auto Show

Wednesday, April 1, 2009


Sunday, April 5, 2009

Colorado Convention Center

700 14th Street Denver 80202


CADA Annual Member Golf Event

Monday, August 24, 2009

12:00 Noon Shotgun Start

Glenmoor Country Club
110 Glenmoor Drive
Cherry Hills Village, 80113


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aNew Orleans is now the eighth fastest growing metropolitan area in the United States, according to the U.S. Census Bureau. To show support for the rebirth of New Orleans, NADA is headed back to the Big Easy to hold its 92nd annual convention and exposition there Jan. 24-27, 2009.

“The theme for our New Orleans convention is 'Voice of the Dealer® ... Committed to Community.' What better way to show that commitment than for us to be there in full strength at one of NADA's favorite convention cities," said Annette Sykora, 2008 NADA Chairman. NADA has held its convention in New Orleans every few years for the past 30 years.

For more information, visit the following websites:

CLICK HERE to register!

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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.

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