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DECEMBER 31, 2008
IN THIS ISSUE
 DEALER NEWS & INFORMATION
– Automotive News at a Glance
REGULATORY & LEGAL UPDATES
– Reminders: Sales/Use Tax & Minimum Wage Changes Effective January 1, 2009
– Guest Column: Disaster Pack
UPCOMING SEMINARS
– Employment Law Seminar: FMLA and ADA Acts - New Federal Regulations!!
– Red Flags Rule Compliance Seminar
– Tough Times, Tougher Dealers Webinar
CALENDAR OF EVENTS
– Upcoming Events
– Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing
– NADA Convention and Exposition
– Denver International Auto Show
– CADA Annual Member Golf Event
DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS
–NADA 2009 Convention and Exposition
–Share Your Accomplishments
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EMPLOYMENT LAW SEMINAR
FMLA and ADA Acts - New Federal Regulations take effect January 1, 2009
Click here for more information!
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.
- Less Control for GM, Cerberus as GMAC Changes to Bank
Washington Post, December 26
GMAC Financial Services' transition into a bank holding company should buy the troubled lender some time to turn itself around, but the cost is a loss of control for its owners General Motors and Cerberus Capital Management.
- A Global Race to the Bottom Puts Progress at Risk
Washington Post, December 21
We were educated to leave New Orleans, not to stay there. We were trained to avoid unions, not to join them. We were taught to do both in pursuit of progress.
- A Bumper Year for Appointed Senators
Hawaii Reporter, December 26
The surprise announcement that Colorado Senator Ken Salazar will leave Congress to join Barack Obama's cabinet as Interior Secretary has completely upended the 2010 Senate race in a highly competitive state.
- GMAC needs to clear final hurdle for bailout funds
Detroit Free Press, December 26
The financing arm of General Motors Corp. had until midnight today to clear a final hurdle in its quest to become a bank holding company, even though it already received the Federal Reserve's stamp of approval earlier in the week.
- Advice for Ritter in replacing Salazar: 4 letters
Denver Post, December 26
Taking advantage of the governor’s offer to have input concerning a replacement for Sen. Ken Salazar, I heartily recommend Angie Paccione.
- Projected budget gap either bad or REALLY bad
The Colorado Statesman, December 26
Is this year’s budget gap in Colorado a whopping $604 million or a manageable $77 million? That depends on which report you read.
- Buescher wins secretary of state nod
The Colorado Statesman, December 26
The morning after Bernie Buescher’s shocking Nov. 4 loss in his Grand Junction legislative district, Gov. Bill Ritter said in his election wrap-up press conference that he had a feeling the defeat did not mean Buescher’s work in state government had ended.
- Recession tops list of '08 stories in Colorado
Rocky Mountain News, December 27
I spent the past week going through 300 or so Rocky Business sections from 2008. I've come up with a list of what I think were the top 10 stories of the year in Colorado.
- Ritter needs bold choice to replace Salazar
The Colorado Statesman, December 26
Colorado’s pundits and politicos are advising Gov. Bill Ritter to replace U.S. Sen. Ken Salazar with someone well-known and well-connected in Democratic circles, someone who can raise the millions of dollars likely to be needed for the 2010 election campaign.
- The limits of 'science.' Does Obama adviser respect them?
Rocky Mountain News, December 26
Stephen Holdren, the former president of the American Academy for the Advancement of Science, will have a direct line to Obama regarding climate change and renewable energy, two of Holdren's major interests.
- GM calls revamped Equinox ‘Swiss army knife’
MSNBC, December 21
General Motors Corp. revealed details Sunday about the redesigned 2010 Chevrolet Equinox crossover sport utility vehicle that will debut at next month's North American International Auto Show in Detroit.
- Winners and Losers ’08: One Writer’s View
The New York Times, December 26
IN its 2008 Car Reliability Study, Consumer Reports ranked the Chrysler Sebring convertible, with a reliability score that was “283 percent worse than average,” dead last among the 357 vehicles covered in the survey of subscribers.
- Bill Heard falls, Synovus cuts jobs among top business stories
Ledger Enquirer, December 28
The struggling economy played into much of the Columbus area’s business news in 2008.
- Auto rescue package leaves big political challenge for Obama
Wacotrib, December 28
Christmas came a little early for the nation’s automakers, thanks to President Bush’s announcement of a last-minute $17.4 billion bailout after fellow Republicans in the Senate defeated a similar rescue package. But like so much expensive holiday giving, the cost won’t be felt till after the holidays.
- Auto CEOs' trip called a green stunt
Detroit Free Press, December 28
The Greenwash Brigade, a group that takes companies and others to task for misleading consumers about their environmental practices, has named the much-ballyhooed trips in hybrids from Detroit to Washington by Detroit's auto CEOs as one of the Greenwashes of the Year.
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REMINDERS: SALES/USE TAX & MINIMUN WAGE CHANGES EFFECTIVE JANUARY 1, 2009
A reminder that the following changes go into effect this week; see the prior Open Road articles below for more information:
JANUARY 1ST, 2009 SALES AND USE TAX CHANGES,
COLORADO MINIMUM WAGE: ANNUAL INCREASE EFFECTIVE JANUARY 1, 2009.
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GUEST COLUMN: DISASTER PACK
By: Ronald C. Smith, Stewart & Irwin, P.C.
Chairman, Automotive Law Practice Group
Given today’s rather radioactive times, the good folks at NADC thought we might develop a dealership advice “disaster pack” in case of one or more catastrophic events. This article could not, of course, be exhaustive, but is simply a compilation of bullet points that, in my opinion and experience, dealer lawyers should consider in advising their clients.
CLICK HERE to review the entire article.
Article summary – make sure you are obtaining legal counsel on these important issues:
- Employment. On the employment front, a major issue would seem to be the applicability of the Federal Worker Adjustment and Re-Training Notice Act (WARN). The Warn Act applies to businesses with over 100 employees and requires a 60-day notice if an employer is going to lay off over half of the workforce at a particular location.
A. Layoffs versus layoffs without recall versus termination. In most states, a layoff has a connotation that an employer will call people back. This course of action could be fraught with discrimination claims, depending upon minority mix, gender, age, etc.
B. Expect your unemployment compensation rate to increase.
- Lending relationships. If your client has a current floorplan, tell them to keep it.
- Cash Management Account. Take steps to guard your client’s Cash Management Account. Your client’s Cash Management Account could be an unsecured debt in the event of a manufacturer bankruptcy if it is maintained by a factory division or subsidiary.
- Factory Accounts. Advise your clients to keep their factory accounts as lean as possible.
- Franchise Alignment. In the event any of the three domestics merge, go Chapter 11 or otherwise, in my opinion those dealers that are properly aligned with product lines will have a higher chance of survival.
- Facilities and Upgrades. Clients should resist factory mandated stand-alone facilities and facilities upgrades where it is not economically justifiable for the dealer.
- Short-Term Franchises. Resist short-term franchise agreements in case of facilities issues.
- Performance and CSI Requirements. Clients should resist stupid franchise performance standards and CSI requirements. Develop a paper trail on behalf of your client, pointing out the statistical flaws in the measurements.
- Personal Debt Planning. Advise your dealers to engage in a bit of personal debt planning.
Ronald Smith’s article was published in the December, 2008 issue of The Defender, the bulletin of the National Association of Dealer Counsels (NADC). We continue to encourage all dealer defense attorneys to join this organization; the information provided in bulletins and publications, the list-serve, and conferences is invaluable. www.dealercounsel.com
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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.
EMPLOYMENT LAW SEMINAR: FMLA AND ADA ACTS - NEW FEDERAL REGULATIONS!!
Presented by Todd Fredrickson, top Denver employment attorney
Tuesday, Jaunary 6, 2009 (Denver)
Wednesday, January 7, 2009 (Colorado Springs)
Next month, the federal government will saddle 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 last month, the first significant changes to the regulations since 1995. Changes are 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 will 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 is Jan. 1, 2009
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CLICK HERE for more information
on this training session. |
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RED FLAGS RULE COMPLIANCE SEMINAR
PLUS: Privacy/Safeguard Recap and Overview of Frequently  Overlooked Federal Compliance Obligations
Friday, Jaunary 9, 2009
By Paul Metrey, NADA’s Director of Regulatory Affairs
Make sure you completely understand the new Red Flags compliance obligations:
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Create and implement a written ID Theft Protection Program with procedures designed to detect and respond to “red flags” indicating potential identity theft.
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Periodically review and update the written program to reflect changing risks.
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Train responsible staff members and oversee service providers (i.e., third party vendors).
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Senior management or owner(s) must approve the program and review/monitor annual reports.
***Opportunity to ask questions, and delve into specific aspects of implementation***
Paul D. Metrey, Esq. is the Director of Regulatory Affairs in the Legal and Regulatory Group of the National Automobile Dealers Association (NADA). He represents dealer interests before, and educates dealers on, regulations promulgated by several federal agencies including the Federal Reserve Board, FTC, FCC, Department of the Treasury, and IRS. He reports on regulatory developments and has authored several NADA publications and frequently speaks to dealers, dealership compliance professionals, and other industry groups on regulatory topics, including recent developments in privacy, ID theft, telemarketing, consumer financing, and tax.
CLICK HERE to register online!
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CLICK HERE for more information
on this training session. |
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TOUGH TIMES, TOUGHER DEALERS: SAVING YOUR DEALERSHIP'S ASSETS
VIRTUAL SEMINAR
Tuesday, Jaunary 13, 2009
Presented by attorney Michael Charapp, of Charapp & Weiss, LLP, and CPA Bradley Nicklin, of Beers + Cutler,
This webinar focuses on the issues facing almost every dealer today, such as:
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Cash Management
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Expense Control
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Franchise Rights
Participants will also learn how to deal with bankruptcy—both at the manufacturer and dealership levels—as well as franchise terminations, brand terminations, and the legal ramifications of reducing a workforce.
The registration fee for the virtual seminar is only $50 per computer connection.
"Tough Times, Tougher Dealers" will also be a workshop at the 2009 NADA Convention & Exposition in New Orleans. The workshop will be held twice—11 a.m. on Saturday, Jan. 24, and 8:30 a.m. on Monday, Jan. 26. In addition, the convention will offer more than 40 other workshops, many of which are designed to tackle today’s tough economic issues head-on, such as maintaining dealer profitability, improving cash flow, surviving the credit crunch and driving customers back to dealerships. For more information, visit www.nada.org/convention.
CLICK HERE to register online!
| Event Description |
Date/Time |
Location |
Family Medical Leave Act & American with Disabilities Act (ADA) Regulatory Updates:
FMLA—new rules are effective January 16, 2009
By Todd Fredrickson, Fisher & Phillips LLP
www.laborlawyers.com
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Tuesday, January 6 Denver, 7:30 – 10am Breakfast Included
Wednesday, Jan 7 – Colorado Springs, Noon-2:30pm Lunch
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William D. Barrow Building 290 East Speer Blvd, Denver, 80203 Phone: 303.831.1722
Antlers Hilton Hotel
4 South Cascade Avenue Colorado Springs, 80903 Phone: 719l955.5600
For more information Click Here
REGISTER ONLINE (DENVER)
Click Here
REGISTER ONLINE (COLORADO SPRINGS)
Click Here |
Red Flags Rule Compliance Seminar
Plus: Privacy/Safeguards Recap and Overview of Frequently Overlooked Federal Compliance Obligations
Denver
By Paul Metrey, NADA Regulatory Affairs
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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! |
Tough Times, Tougher Dealers: Saving Your Dealership’s Assets
Webinar
Denver
Presented by attorney Michael Charapp, of Charapp & Weiss, LLP, and CPA Bradley Nicklin, of Beers + Cutlers
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Tuesday, January 13, 2009,
1:00 - 3:00 pm
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The registration fee for the virtual seminar is only $50 per computer connection.
For more information or to register, visit www.nada.org/seminars! |
| Event Description |
Date/Time |
Location |
Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing
This is for attorneys working with dealers and dealer principals.
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Friday, January 9, 2009
11:30-1:30
Lunch |
Briefing / update on upcoming legislative session, compliance and regulatory matters, and Red Flags/Safeguards overview from Paul Metrey, NADA Regulatory Affairs
Baur’s Restaurant
www.baursdenver.com
1512 Curtis Street , Denver, CO 80202
CLICK HERE to register online!
CLICK HERE for more information! |
NADA Convention & Exposition
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Jan. 24-27, 2009
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New Orleans Morial Convention Center
New Orleans, LA
CLICK HERE for more information from the official website. |
Denver International Auto Show
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Wednesday, April 1, 2009
thru
Sunday, April 5, 2009 |
Colorado Convention Center
700 14th Street Denver 80202 |
CADA Annual Member Golf Event
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Monday, August 24, 2009
12:00 Noon Shotgun Start
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Glenmoor Country Club
110 Glenmoor Drive
Cherry Hills Village, 80113
303.781.3000
www.glenmoorcc.org |
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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!
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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.
If you want to be added to our mailing list, please CLICK HERE.
To remove yourself from this list, click on this link.
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