NOVEMBER 19, 2008

IN THIS ISSUE

DEALER NEWS & INFORMATION

– Automotive News at a Glance

REGULATORY & LEGAL UPDATES

– Guest Legal Column: Overview of Dealership Litigation and Legal Trends Across the States

UPCOMING SEMINARS

– Fixed-Ops Growth Strategies!

– Red Flags and Safeguards/Privacy Training

CALENDAR OF EVENTS
– Upcoming Events

– MDADA Annual Membership Meeting, Denver

– Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

– NADA Convention and Exposition

DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

–NADA 2009 Convention and Exposition

–Share Your Accomplishments

–Dealer Notification

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

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.

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.

Need Acrobat Reader
to view linked
documents?
CLICK HERE for a FREE
download from Adobe.

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.

AUTOMOTIVE 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.

GUEST LEGAL COLUMN: OVERVIEW OF DEALERSHIP LITIGATION AND LEGAL TRENDS ACROSS THE STATES

The CARLAWYER©
By Thomas B. Hudson and Emily Marlow Beck

This column features federal and selected significant state legislative highlights, and a recap of some of the litigation we track every month.  Be careful - what we report here is not every recent development, just ones that we think are of particular interest to car dealers - and note that this column does not offer legal advice.  You need to consult your lawyer with questions.

We include items from other states.  Why?  For two reasons.  First, we want you to be able to see trends, and, second, another state’s laws might be a lot like your own state’s laws – if laws are being enacted there, or AGs or plaintiffs’ lawyers are pursuing particular types of claims, those laws and claims might be coming soon to your area. As always, though, you need to check with your own lawyer before you rely on anything we report or if you have any questions.

Federal Law

Can You Quit Waving That Red Flag til May of 2009?  It seems like every month, we’ve mentioned the Federal Trade Commission’s new Red Flags Rule. We’ve warned that the Rule is effective now - - dealers may comply with it right now if they elect to, and have warned that dealers must comply beginning November 1.  

On October 22, the Federal Trade Commission announced that it would suspend enforcement of the Red Flags Rule until May 1, 2009.  The federal banking agencies and the FTC announced the Red Flags Rule on November 9, 2007.  At that time, the agencies established a mandatory compliance date of November 1, 2008.  The October 22 announcement gives financial institutions and creditors subject to the FTC's jurisdiction an additional six months before the FTC will undertake enforcement actions.  The Red Flags Rule resulted from the Fair and Accurate Credit Transactions Act of 2003, which amended the Fair Credit Reporting Act and requires covered entities to develop and implement a written Identity Theft Prevention Program designed to detect, prevent, and mitigate identity theft.  Two other rules announced in conjunction with the Red Flags Rule, covering notices of consumer address discrepancies and special requirements for credit and debit card issuers regarding changes in customers' addresses, still take effect on November 1, 2008.

Dealers need to pay close attention to what the FTC has done, and what they haven’t done.  The agency has announced that it will “suspend enforcement” of the Red Flags Rule."  The FTC did not change the date – November 1 – that compliance with the Rule becomes mandatory. 

Here’s how we look at this development.  Assume your town lowers its speed limit on Main Street from 45 to 35, but the cops say they won't ticket anyone for exceeding the new limit by 10 miles an hour or less for 30 days so people can get accustomed to the change.  So if you're doing 45 through town, you won't get a ticket, but if you have a wreck and injure someone because you're driving faster than the posted limit, you could well be liable to the person injured for damages.

Bottom line – if you didn’t get that Red Flags program into place by November 1, get it into place as quickly as you possibly can.  Don’t wait until May 1...

CLICK HERE to read the full article; highlights below:

State Developments

• Sales and use tax expansion in California
• Massachusetts passes state safeguards rule 

Litigation

• Retention of Titles Insufficient to Perfect Security Interest in Vehicle Inventory (TX)
• Seller of Vehicle Online Not Subject to Personal Jurisdiction in State of Buyer’s Residence (TX and 9th Circuit Ct of Appeals) 
• Language on Back of Check Sent by Refinancing Creditor to Original Creditor Insufficient to Create Contract (TX Court of Appeals)  
• Vehicle Lien Unperfected Where Title Notation Made in Wrong County (U.S. Bankruptcy Court -- Eastern District of KY)
• Creditor’s Possession of Security Documents and Certificate of Origin Sufficient to Temporarily Perfect Vehicle Lien
• Creditor’s Possession of Security Documents and Certificate of Origin Sufficient to Temporarily Perfect Vehicle Lien (U.S. Bankruptcy Court -- District of NE)

Tom and Emily are partners in the law firm of Hudson Cook, LLC.  Tom (tbhudson@hudco.com) is the author of a book, CARLAW®, and, with Emily (ebeck@hudco.com), is the Editor/author of the CARLAW® F&I Legal Desk Book.  The books are available at www.counselorlibrary.com.   Tom is also the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®, a monthly report of legal developments in all states for the auto finance and leasing industry (not to be confused with the book).  Spot Delivery, CARLAW and the books are produced by CounselorLibrary.com LLC.  For information, call 410-865-5411 or visit www.counselorlibrary.com.  Copyright CounselorLibrary.com 2008, all rights reserved.  Single publication rights only, to the Association. HC# 4833-0990-8226  (8/08).

* * * * * * *

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

• Tammi McCoy, Vice Pres., tammi.mccoy@coloradodealers.org, 303.282.1449
• Tim Jackson, President, tim.jackson@coloradodealers.org, 303.282.144

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.

FIXED-OPS GROWTH STRATEGIES

Traditional thinking will not bring you new service customers

December 9-11, 2008; Six Sessions Across Colorado!

A thought-provoking, information-packed, business-changing workshop by a highly renowned consultant: Don Tipton has presented for many
state dealer associations and 20-Groups.

IT IS TIME TO CREATE A NEW IMAGE AND FIND INNOVATIVE WAYS TO:

• Provide service that will drive sales
• Create an environment that attracts customers…instead of marketing to
  drive customers
• Your service department may be perceived to be “High-Priced” and “Inconvenient”,
  especially by customers with older, high mileage, or out of warranty vehicles.
• Traditional pricing and customer handling procedures tend to reinforce this
  perception.
• Your old performance indicators and benchmarks may be getting in the way
  

Presented by Don Tipton, President-DTC Retail Consulting, www.dtcretailconsulting.com

Don Tipton, still an active dealership consulltany today, offers "In the Trenches" automotive experience combined with knowledge of proven management techniques. Don began in the automotive business at the age of 8, working for his father, a parts and service manager. Don has held management positions a both small single point stores and large multi-dealer operations at the corporate level. He spent a number of years with what was the largest automotive fixed operations consulting firm in the country, conducting training seminars and in-dealership consulting. He is passionate about this business and the success of dealers.

CLICK HERE to find your location and register online!

CLICK HERE for more information on this training session.

* * * * * * * *

TO REGISTER ONLINE FOR ANY CADA SEMINAR OR EVENT, PLEASE VISIT: www.coloradodealers.org/registration

Event Description	Date/Time	Location
Fixed-Ops Growth Strategies! Colorado Springs Presented by Don Tipton	Tuesday, Dec. 9th 8:00 to 10:30 am	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 REGISTER ONLINE!
Fixed-Ops Growth Strategies! Pueblo Presented by Don Tipton	Tuesday, Dec. 9th Noon to 2:30 pm	Pueblo Convention Center, 320 Central Main Street Pueblo, CO  81003  Phone: 719.542.1100 For more information Click Here REGISTER ONLINE!
Fixed-Ops Growth Strategies! Loveland Presented by Don Tipton	Wednesday, Dec. 10th 7:30 am - 10:00 am	Best Western Crossroads Inn & Conference Center 5542 E. US Highway 34 Loveland, CO  80537  Phone: 970.667.7810 For more information Click Here REGISTER ONLINE!
Fixed-Ops Growth Strategies! Denver Presented by Don Tipton	Wednesday, Dec. 10th Noon to 2:30 pm	William D. Barrow Building, CADA Headquarters 290 E. Speer Blvd. Denver, CO  80203 Phone: 303.831.1722        For more information Click Here REGISTER ONLINE!
Fixed-Ops Growth Strategies! Glenwood Springs Presented by Don Tipton	Thursday, Dec. 11th 7:30 am - 10:00 am	Hotel Colorado, 26 Pine Street, Glenwood Springs, 81601 Phone:  800.544.3998 For more information Click Here REGISTER ONLINE!
Fixed-Ops Growth Strategies! Grand Junction Presented by Don Tipton	Thursday, Dec. 11th 12:30 pm - 3:00 pm	Doubletree Hotel, 743 Horizon Drive, Grand Junction, CO  81506 Phone: 970.241.8888 For more information Click Here REGISTER ONLINE!
Red Flags and Safeguards/Privacy Training Denver By Paul Metrey, NADA Regulatory Affairs	Friday, January 9, 2009, 7:30am Breakfast meeting	William D. Barrow Building (CADA/MDADA Headquarters) 290 E. Speer Blvd (SW Corner of Grant/Speer) Phone: 303.831.1722 For more information Click Here REGISTER ONLINE!

NADA 2009 CONVENTION AND EXPOSITION

New 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:
http://www.nada.org/TrainingEvents/Convention/
http://expo.nada.org/nada2009/public/enter.aspx

CLICK HERE to register!

* * * * * * * *

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.

* * * * * * * *

DEALER NOTIFICATION

Effective December 1, 2008, there will be a price adjustment on the forms identified below.  As always we appreciate your business and apologize for any inconvenience this may cause.  If you have any questions regarding the purchase of forms from CADA, please contact George Billings or Lauren Stadler at 303.831.1722 or via email george.billings@coloradodealers.org or lauren.stadler@coloradodealers.org
Forms can also be ordered through the CADA website at www.coloradodealers.org

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

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