FIVE ALIVE

While there are hundreds of various bills in play at the Colorado Capitol, the following include those five most pertinent pieces of legislation CAR is focusing toward.    

  CLICK HERE to read this informative article by CAR lobbyist Jeremy Cottrell. 
 

D&H LAWSUITS

We at CADA have received reports of a number of lawsuits filed in other states (Arkansas, South Carolina) seeking damages from dealers on the basis the delivery and handling (D&H) charges are the “unauthorized practice of law.” Some of the cases have been filed as class action litigation. We are aware of one such case having been filed in Colorado. If you are aware of any such cases or if your dealership receives notice of pending litigation, please let us know immediately.

A reminder to dealers that in light of these D&H lawsuits and these fees being targeted, please ensure you are following Colorado guidelines on the fees.

  CLICK HERE to review the D&H article reprinted from the July, 2005 CADA Bulletin.

Additionally, please be sure that all of your advertised prices are inclusive of D&H fees (per state advertising rules).

If you have additional questions on this topic, please contact either Tammi McCoy or Tim Jackson:
 

   -   Tim Jackson, President, tim.jackson@cadaonline.org, 303.282.1448

   -   Tammi McCoy, VP, tammi.mccoy@cadaonline.org, 303.282.1449

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INTERNATIONAL TRUCK AND ENGINE CORP. WINS LEGAL CHALLENGE ON RETAIL OWNERSHIP

International Truck and Engine Corp won a legal challenge in the Colorado Court of Appeals that narrows the reach of Colorado franchise laws.

International, a manufacturer, has an ownership interest in the Denver Used Truck Center, a used motor vehicle dealership.  Since 1998, International had been operating with a motor vehicle dealer license. In 2004, Transwest GMC Trucks—realizing the ownership interest and conflict with state law—filed a complaint with the Auto Industry Division that Colorado statute 12-6-120.5(1) was being violated.  The statute states that “no manufacturer shall own, operate, or control any motor vehicle dealer in Colorado.”  

International essentially argued that “any motor vehicle dealer” did not reach used motor vehicle dealers because that term is defined separately in the franchise law.  In other words, the legal outcome of the case hinged on the applicability and meaning of the word “any.”

The court agreed with International to find that the prohibition on manufacturer ownership does not reach used motor vehicle dealers.  the ramifications of this decision to Colorado dealers is worrisome.  CADA is evaluating options legislative to address this case, as we believe it is erroneous and contrary to the intent of the franchise act as originally passed. It is not yet known if Transwest will appeal this decision.  

  CLICK HERE to review the court’s opinion.  
 

If you have additional questions on any legal or regulatory topics, please contact either Tammi McCoy or Tim Jackson:
 

   -   Tim Jackson, President, tim.jackson@cadaonline.org, 303.282.1448

   -   Tammi McCoy, VP, tammi.mccoy@cadaonline.org, 303.282.1449

unclaimed property compliance seminar

The Colorado Office of the Treasurer compliance/audit personnel will review Colorado unclaimed Property Laws and Regulations. The Colorado Unclaimed Property Act has covered automobile retailers since 1992

• Begin your annual reporting obligation now; penalties and interest will be waived

• Businesses in Colorado must take specific steps to return “unclaimed property”; covered property not returned to the rightful owner must be turned over to the state

• In general, “unclaimed property” includes various types of obligations or liabilities of a business which have been in active or have not been paid after an extended period of time after they are payable. Examples include:  Amounts owed to suppliers/vendors, Due Bills / We Owe Accounts (for parts, service, equipment ordered at the time of vehicle sale) Payroll/wage obligations, outstanding checks, Overpayments/refunds/rebates, or  security or other deposits,

• Free reporting software from a third party is available from the state for reporting purposes; a representative will review and demo the software capabilities

• Some dealerships or individuals attending may have “found” property at the state; they will check their records for all seminar attendees

   Please CLICK HERE for more information on this seminar.  Register for this seminar by returning the attached registration form or clicking on the respective link below.
 

*Breakfast or lunch will be provided.

other SCHEDULED TRAINING seminars

upcoming events for 2007