April 18, 2007
Volume #1, Issue #16

     - Member Golf Event
     - IRL Uses Methanol to Power
       Race Cars in 2007

     - Final Stretch for Sunset Review

       Legislation, SB-221

    - Monroney Labels: Customers
      Should Remove the Label,
      Not Dealers

    - Privacy, Safeguards & Compliance
      Hot Topics
    - Creating a Super Controller
    - Other Training Seminars

Upcoming Events


    - Lloyd Chavez: A Lifetime
      of Leadership

    - Let Us Know About YOUR

    Click here for Open Road archives.


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this e-newsletter, please
contact Tim Jackson at tim.jackson@cadaonline.org 

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Reminder: Safeguards, Privacy, and Compliance Hot Topics by Rob Cohen is fast approaching, click here for more details…


Monday, August 27, 2007

Mark your calendar for this year’s CADA Member Golf Event at Valley Country Club. It promises to be an incredible golf and networking experience at one of the oldest clubs in the area, which is now one of the newest! For more than 50 years, Valley Country Club has been dedicated to excellence in golf, dining, social, and recreational activities. The Club has recently renovated the clubhouse and invites you to come and experience the warm hospitality and gracious service in a unique setting.

CLICK HERE for more details on Valley Country Club.
  CLICK HERE for a reminder flyer to save the date.

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“Indy Racing League Uses 100% Ethanol To Power Race Cars For The 2007 Season,” www.e85Tips.com

The IRL - Indy Racing League (IndyCar Series), which has been accepted for its technical advancements in automobile racing, is now the motorsport-racing leader in renewable alternative fuel produced in America. All of the 2007 field of Indy Race Cars will be fuel by 100% Ethanol.

This is quite an achievement considering there is such a debate about whether or not ethanol is a viable alternative fuel source. Think about this, if ethanol can power a 600+ horsepower racecar to speeds over 200+ mph with efficiency - certainly it can power our everyday old "grocery getter" without problem.

CLICK HERE to read the entire article.

CADA forwards news articles and opinion columns of interest through Open Road to inform members of current events. These in no way reflect the views, opinions, and/or positions of CADA or its member dealers. They are sent for informational and educational purposes only.

final stretch for sunset review legislation, sb-221


The Sunset Review bill for the Colorado Motor Vehicle Dealer Board passed Thursday in the Business Affairs and Labor Committee with a unanimous vote.


The more “telling” vote was one on the make-up of the Motor Vehicle Dealer Board (MVDB), in which the committee voted seven to three (7 to 3) in our favor to maintain the current composition of the board. 


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


Federal guidelines regarding dealer responsibility pertaining to Monroney labels are strict and specific. This “refresher” update is provided to help keep you and your dealership staff knowledgeable and compliant with the letter and spirit of the law.


DEALER QUESTION: Is it unlawful for me—the dealer—to remove the Monroney label on a sold vehicle at the time of delivery? Or must the customer remove the respected Monroney label? I am worried about fines and jail time and was wondering about this. 


ANSWER: As business advice, CADA recommends that the dealer deliver the car to the consumer and have the consumer remove the label upon delivery (this is to be extra safe as opposed to the dealer removing the label for the consumer), as opposed to the dealer removing the label for the consumer. Federal laws and guidelines address this fairly directly:

  • FTC Car Buyer's Guide states the sticker "may only be removed by the purchaser."

  • Federal statute, 15 USC. Section 1233(c) states:

§ 1233. Violations and penalties

"Any person who willfully removes, alters, or renders illegible any label affixed to a new automobile pursuant to section 3 [15 USCS § 1232], or any endorsement thereon, prior to the time that such automobile is delivered to the actual custody and possession of the ultimate purchaser of such new automobile, except where the manufacturer re-labels the automobile in the event the same is rerouted, repurchased, or reacquired by the manufacturer of such automobile, shall be fined not more than $1,000, or imprisoned not more than one year, or both. Such removal, alteration, or rendering illegible with respect to each automobile shall constitute a separate offense.

  • In a criminal case involving several salespersons and other employees of a Mitsubishi dealership in Connecticut. The Dept. of Justice charged the individuals with preventing the customers from obtaining the Monroney label so the customer would not realize how much over the MSRP they were paying. In that case, the people who cleaned the cars prior to delivery were instructed to remove the labels from the vehicle. The first person sentenced was given leniency because of his extensive military service.

  • Some consumer guides suggest that the consumer keep the label to prove that the car was delivered with certain features (e.g. traction control).

 For more information, CLICK HERE to read the attached file, Automobile Information Disclosure Act, from U.S. Department of Justice. 



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

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.


Don’t miss this important compliance seminar!

CADA has arranged to bring to you an industry compliance expert to review several key “hot topic” areas of dealer compliance, including the following: 

  • Safeguards and Privacy rules are coming under increasing enforcement activity and scrutiny.

    • Dealers must have a Safeguards Program Coordinator, conduct a risk assessment, implement written safeguards to control risks, oversee service providers, and re-evaluate periodically

    • Document shredding, definition of “non-public information,” consumer privacy notices, opt-out rights

  • Fair Credit Reporting Act / Adverse Action notices – dealers may not be able to rely on financial institution notices alone; recent court decisions against dealers

    • Restrictions on credit reports, “permissible purposes”, OFAC checks, fraud alerts, ID theft

  • Cash reporting rules – overview of responsibilities, IRS audits and selling vehicles to customers without Social Security numbers.

  • Negative equity (over-allowance) disclosures and relevant court cases against dealers.

CLICK HERE to view the April 6, 2007, *Special Edition* of Open Road for full details on this seminar.


  CLICK HERE for a registration form you can return by mail or fax.
Select the respective link below to register online. 



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Are you providing your dealer and managers with the reports they really need to make more money? Do you know what reports are crucial to monitoring your dealership and increasing profits?  In this dynamic half-day seminar, noted speaker, former super controller and consultant Sandi Jerome will give you the essential tools and information you need to answer these questions with a resounding yes!


Become a super controller and drive your dealership’s bottom line!


This is a must-attend event for general managers, office managers and CFOs who need to move from everyday “bean counting” methods to mastering super controller techniques that increase efficiencies, save time and drive profits.


In today’s competitive market, it’s critical that dealers have a “super controller” who’s focused on two things: maximizing profits and helping others streamline their processes. Don’t miss this opportunity to learn essential super controller secrets from Sandi Jerome, a sought-after speaker, former super controller, consultant and recognized expert in dealership internal controls.


Due to space constraints, this seminar

 is limited to the first 48 registrants.

Sign up today!



Date / Time*



Thursday, July 26

8 to 11am

William D. Barrow Building
(CADA / MDADA headquarters)
290 E. Speer, Denver,
SW Corner of Grant & Speer


CLICK HERE for seminar flyer and to fax or mail
        your registration.
CLICK HERE to register online.



Friday, July 27

8 to 11am

Doubletree Hotel, 743 Horizon Drive 970.241.8888


CLICK HERE for seminar flyer and to fax or mail
        your registration.
  CLICK HERE to register online.


 * * * * * * *




Date / Time*


Unclaimed Property Seminar




Grand Junction

** TOMORROW ** Thursday, April 19
11:30 am to 1:30 pm


Grand Vista Hotel, 2790 Crossroads Blvd.
Phone: 970.254.7100

CLICK HERE to register  online for this location.

Five Ways to Reduce Your Dealership Workers' Compensation Costs

By Dave Campbell, Wells Fargo Insurance Services (formerly Acordia) and Lonnie Garcia, Pinnacol Assurance


Tuesday, May 22
10 am to 1 pm



Pinnacol Assurance Offices
(Hayden Pass Training Room)
7501 E. Lowry Blvd.
Denver, 80230

RSVP directly to Wells Fargo Insurance Services  at 719.785.8184.

Five Ways to Reduce Your Dealership Workers' Compensation Costs

By Dave Campbell, Wells Fargo Insurance Services (formerly Acordia) and Lonnie Garcia, Pinnacol Assurance

Grand Junction

Wednesday, May 23
10 am to 1 pm



Doubletree Hotel
743 Horizon Drive
Grand Junction, 81506

RSVP directly to Wells Fargo Insurance Services  at 719.785.8184.



upcoming events


Event Description

Date / Time


CADA Annual Golf Event

Monday, August 27

Noon shotgun start

Valley Country Club

14601 Country Club Dr., Aurora

Regional Member Briefings


Fall 2007
Dates to be determined

Location to be determined

MDADA Annual
Membership Meeting

Tuesday, Nov. 27

11 am to 2 pm

Cherry Creek Country Club

(more details to follow soon)




On March 29, the South Metro Denver Chamber Board of Directors honored Lloyd Chavez with a Lifetime Achievement Award for his contributions to the South metro community.


A Littleton native, Chavez’s desire to work in the automobile industry started early and grew to become a family affair. His father worked for Nate Burt, the original owner of a small General Motors dealership in Englewood, which became Burt Chevrolet in 1939.

"My dad was a laborer—he was Nate Burt's gardener," Lloyd said.


When Lloyd graduated from the University of Denver, his dream was to work for General Motors. He was hired by GM, but the car company hadn't made the transition from manufacturing war machinery to domestic transportation, so they told Lloyd to stay in Colorado and work at Burt Chevrolet. GM eventually contacted Lloyd for a job, but he enjoyed working for Burt so much that he turned GM down.

At 78 years old, Lloyd said he just happens to be in the car business and is blessed with an entrepreneurial family that is helping to guide the auto industry.  The Burt Automotive Network, owned by the Chavez family, now includes 10 dealerships in the south metro area.

 "The Chavez family has a rich tradition of leadership, and have been active in the Englewood Chamber and our Chamber," John Brackney, South Metro Denver Chamber president said. "The commitment they have shown through the years is remarkable. Burt has sponsored Driver's Ed in both Englewood and Littleton since 1952. The company has been a leader in youth baseball and football for decades and has supported Craig Hospital for 30 years with cars and vans. Lloyd is a humble leader who has made an extraordinary impact on our community and we congratulate him on a lifetime of service."



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Have you or anyone else at your dealership won an award recently? Has 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 openroad@cadaonline.org.  Also include your contact information for further follow-up.


If you want to be added to our mailing list, please click here.

Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO  80203
Telephone:  303.831.1722
  |  Facsimile: 303.831.4205


Copyright 2007 Colorado Automobile Dealers Association.  All Rights Reserved.