NOVEMBER 19, 2008



Automotive News at a Glance



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



Fixed-Ops Growth Strategies!

Red Flags and Safeguards/Privacy Training

Upcoming Events

MDADA Annual Membership Meeting, Denver

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

NADA Convention and Exposition


NADA 2009 Convention and Exposition

Share Your Accomplishments

Dealer Notification


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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.

  • No to Detroit – Its time to turn off the federal bailout spigots
    Rocky Mountain News, November 2
    A modest sigh of relief is in order with the announcement Friday that the U.S. Treasury Department will not hand over billions of dollars in federal aid to facilitate a merger between General Motors and Chrysler.
  • JACKSON: Hardly 'charity' to save Big 3 automakers
    Rocky Mountain News, November 13
    Contrary to the view espoused by the Rocky Mountain News in its editorial of Nov. 2 ("No to Detroit"), the failure of the Big Three would trigger an economic earthquake that would be felt far from Detroit. Coloradans would certainly feel the shock waves, no matter what brand of vehicle we favor or where we work.
  • Saving Detroit From Itself
    The New York Times, November 15
    We have seen a lot of posturing, but we haven’t heard a lot of sense in the debate over whether the government should spend even more to bail out Detroit’s foundering automakers.
  • What’s Good for G.M. Is Good for the Army
    The New York Times, November 16
    ...we must act: aiding the American automobile industry is not only an economic imperative, but also a national security imperative.
  • Stimulate Car Buyers, Not Car Makers
    The Wall Street Journal, November 15
    Rebates would have less harm than a bailout.
  • Just Say No to Detroit
    The Wall Street Journal, November 15
    Given the abysmal performance by Detroit's Big Three, it would be better to send each employee a check than to waste it on a bailout, says David Yermack.
  • Union:  Neither management nor union are responsible for auto industry meltdown
    The Wall Street Journal, November 17
    The United Auto Workers is holding the line against wage and benefit cuts, but it may not be able to escape further concessions if it hopes to get the government to bail out Detroit.
  • Top Republicans Oppose Auto Industry Bailout
    The Wall Street Journal, November 16
    Top Republican senators said Sunday they will oppose a Democratic plan to bail out Detroit automakers, calling the U.S. industry a "dinosaur" whose "day of reckoning" is coming.
  • Obama Gets Plenty of Advice on Detroit Bailout
    The Wall Street Journal, November 16
    President-elect Barack Obama is being deluged with advice on how to respond to requests for aid from troubled U.S. auto makers, even before he takes over the White House.
  • Auto aid proposal hits GOP roadblock
    The Detroit News, November 14
    A plan to provide $25 billion in emergency loans to Detroit's Big Three automakers ran into stiffening resistance from Republicans on Thursday, putting the prospects of quick passage next week in doubt.
  • Carmaker crisis hits suppliers
    The Detroit News, November 14
    The fallout from the financial crisis in the auto industry is reverberating down the parts supply chain of Detroit's Big Three, with more cost cutting, job losses, bankruptcies and liquidations expected.
  • Reid: Auto aid will get two shots in Senate
    The Detroit Free Press, November 17
    Senate Majority Leader Harry Reid said today the Senate would get two chances to approve aid for U.S. automakers, but did not release any details about the scale or scope of his plan.
  • Showdown looming in Congress of automaker rescueshowdown
    The Detroit News, November 16
    Hardline opponents of an auto industry bailout branded the industry a "dinosaur" whose "day of reckoning" is near, while Democrats pledged Sunday to do their best to get Detroit a slice of the $700 billion Wall Street rescue in this week's lame-duck session of Congress.
  • 6 myths about the Detroit 3
    The Detroit Free Press, November 17
    The debate over aid to the Detroit-based automakers is awash with half-truths and misrepresentations that are endlessly repeated by everyone from members of Congress to journalists.
  • Like 1979, next auto rescue won't be easy
    The Detroit Free Press, November 17
    In 1979, when Congress crafted the historic and controversial Chrysler Corp. Loan Guarantee Act -- which protected tens of thousands of jobs nationwide and gave the automaker another three decades of life -- political leaders carefully threaded the strings it attached to the $1.5 billion in federally backed loans.
  • Detroit's Small Car Discount
    The Wall Street Journal, November 17
    The Detroit Three auto makers are in financial trouble for a wide array of reasons, but not because they don't make fuel efficient cars. They do. Consumers just don't want to pay that much for them.
  • White House refines position on auto industry help
    BusinessWeek, November 17
    With Congress returning Monday to deal with an auto industry in dire financial straits, the Bush White House stressed that it supports help, but not at the expense of the $700 billion Wall Street rescue program.
  • No blank check for automakers
    Denver Post, November 17
    Calls for an auto industry bailout have become ever more insistent in recent days, as have the dire predictions of what's to come if the government doesn't ante up.

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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 


  • 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 ( is the author of a book, CARLAW®, and, with Emily (, is the Editor/author of the CARLAW® F&I Legal Desk Book.  The books are available at   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 LLC.  For information, call 410-865-5411 or visit  Copyright 2008, all rights reserved.  Single publication rights only, to the Association. HC# 4833-0990-8226  (8/08).

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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.

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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.


  • 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
  • Your old performance indicators and benchmarks may be getting in the way

Presented by Don Tipton, President-DTC Retail Consulting,

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!

A CLICK HERE for more information
on this
training session.
* * * * * * * *
Event Description

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

For more information Click Here


Fixed-Ops Growth Strategies!


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


Fixed-Ops Growth Strategies!


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


Fixed-Ops Growth Strategies!


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


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


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


Red Flags and Safeguards/Privacy Training


By Paul Metrey, NADA Regulatory Affairs

Friday, January 9, 2009,


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


Event Description

MDADA Annual Membership Meeting/CADA Regional Meeting  


Tuesday, Nov. 25

11 a.m.- Lunch Meeting (General Session)

Plan to arrive by 10:45am

JW Marriott Denver at Cherry Creek
150 Clayton Lane
Denver 80206
Attendees can register through CADA via Phone: 303.831.1722, FAX: 303.831.9100, or

Complimentary valet parking

CLICK HERE to register online!

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

Friday, January 9, 2009



Briefing / update on upcoming legislative session, compliance and regulatory matters, and Red Flags/Safeguards overview from Paul Metrey, NADA Regulatory Affairs

Baur’s Restaurant
1512 Curtis Street , Denver, CO 80202

CLICK HERE to register online!
CLICK HERE for more information!

NADA Convention & Exposition

Jan. 24-27, 2009

New Orleans Morial Convention Center
New Orleans, LA

CLICK HERE for more information from the official website.

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


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 Also include your contact information for further follow-up.

* * * * * * * *


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 or
Forms can also be ordered through the CADA website at

Form #


New Price

DR 206

Denver Sales Tax Receipt [100/pad]

$6.00 per pad

DR 26

State Sales Tax Receipt [100/pad]

$4.00 per pad

DR 2444

Statement of Fact [100/pad]

$18.00 per pad


Authorization to Pay off [50/pad]

$5.00 per pad


Employment Applications [50/pad]

$10.00 per pad


Mortgage Acknowledgement Postcard [50/pkg]

$40.00 per pkg


Permit Frames – Motorcycle [100/box]

$55.00 per box


Permit Frames – [50/box]

$35.00 per box


Permit Frames – [100/box]

$55.00 per box


Permit Frames – [200/box]

$90.00 per box


Permit Frames – [400/box]

$180.00 per box

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