2019 NADC Annual Member Conference
Speakers: Deborah Dorman, Eastern New York Coalition of Automotive Retailers | Shari S. Patish, Hall Automotive, LLC | Stuart A. Rosenthal, Attorney at Law | Melinda Levy-Storms, The Niello Company
This program will introduce attorneys to the dealership environment, their dealership clients, and the legal and regulatory issues they are likely to encounter. It is designed for those relatively unfamiliar with new car dealership operations and issues, or those who have only dealt with one aspect of automotive law and would like to learn more about other areas. It is intended as a general introduction, to be augmented by the other sessions presented at the conference.
Presentation
Supplemental Materials
- 1.0 GM Franchise Agrmnt Comparison 2010 to 2015 Std Provisions
- 2.0 Franchise Law Index
- 2019.04.25 NY Lawmakers Address Surge in ADA Website Accessibility Suits _ NYLJ
- 2019_NADA_Regulatory_Maze_Booklet
- General Introduction to a Retail Automotive Dealership dd revised219
- JUGGLING JARGON Rev.4 - 21919
- Manslaughter Charges Filed Against Lynnway Auto
- NADA Data 2018
Speakers: Johnnie Brown, Pullin, Fowler, Flanagan, Brown & Poe, PLLC | Evan Nahmias, City Enterprises, LLC | Harold Oehler, Lazydays RV
In the battle to defend consumer claims, dealer counsel face an onslaught of attacks from several different fronts:
- TRIAL LAWYERS - Taking aim at motor vehicle dealers and manufacturers as their next target rich environment, plaintiff’s lawyers have set up “Consumer Law” groups to recruit attorneys to specialize in consumer claims. These groups actively share form pleadings and information on how to better attack motor vehicle dealers.
- CLAIMANTS - State legislatures have passed legislation creating broad private causes of action impacting dealers. Claimants are more connected than ever through social media, so claims not resolved promptly can trigger “copy-cat” lawsuits, class-actions and investigations by the FTC or state Attorneys General.
- MANUFACTURERS - Against this backdrop, manufacturers are becoming more adept at creating policies and procedures to shift responsibility for manufacturing and design defects to the dealer.
With attacks coming from all sides, and corporations trying to decrease rising litigation costs,enormous pressure exists on dealer counsel to use innovative means to repel these escalating threats on a shrinking war budget.
A panel of veteran dealer attorneys, with decades of experience as both outside and in-house counsel, will share battle-tested and state-of-the-art strategies on how to resolve claims at a fraction of the cost.
Presentation
Speakers: Andrew Koblenz, NADA | Paul Metrey, NADA
During this session, NADA attorneys Andy Koblenz and Paul Metrey will highlight an array of salient and breaking federal regulatory developments affecting auto dealers, including tariffs, the Military Lending Act, and the rollout of the optional NADA/AIADA/NAMAD Voluntary Protection Products Policy.
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Supplemental Materials
Speakers: Melinda Levy-Storms, The Niello Company | Shirley Wang, Davis Wang, PLC | Frederick L. Warren, Ford & Harrison LLP
Now more than ever, especially in light of “#MeToo,” responsible employers must conduct workplace investigations into all incidents or complaints of workplace harassment. The reality, however, is that many employers either don’t know where to begin or make common mistakes that can derail an investigation which, in hindsight could have easily been avoided. This hour-long will bring you up to speed on conducting a thorough and effective workplace investigation.
Presentation
Speakers: Erika Ahern Curran, CNA National | Mark Barnes, Portfolio | Andrew Weill, Weill & Mazer
Dealers are often excited by the sales pitches of F&I programs. However, the sign-up documentation and related papers may not always correspond to the dealer’s expectations, and may pose risks to the dealer. These issues are usually fixable by negotiation and proper drafting. The presenters will discuss examples from real contracts, comment on the problems posed, and provide perspectives on how the issue can be resolved. As one example, some programs may have onerous and nonobvious terms that impede an easy termination of the arrangement by the dealer. The presenters include a senior executive from a major F&I provider and an attorney frequently involved in negotiating these provisions on behalf of dealers.
Presentation
Speakers: John G. Iannarelli, FBI Special Agent (Ret.) | Robert A. Shimberg, Hill Ward Henderson
This session will discuss the following items:
- What to do if there is a data breach at your dealership involving customer personal identifying financial information or credit card information
- Examples;
- Forensic IT review;
- Notify law enforcement;
- Customer notice;
- Notice to Attorney General’s Office;
- Media messaging; and
- Social media interaction with customers and the public.
- The “business email compromise” and other schemes
- Examples;
- What do you do if your dealership is a victim – stop or reverse the wire;
- What to do if you can’t get the money back; insurance; other responsible parties;
- What to do if the dealership is sued by a “victim”;
- Regular employee training.
- Examples;
Presentation
Speakers: John Forehand, Kurkin Forehand Brandes LLP | Todd Milbury, NADA | Joseph Roesner, The Fontana Group, Inc.
The presentation will address the need for a manufacturer to allocate new vehicles among its franchised dealers. We will discuss some historical examples of abuse of allocation systems, how those abuses helped shape current allocation systems, and lessons learned. In general terms, we will explain by example the most common systems for allocation of vehicles including “Turn-and-Earn” and “Balanced Days Supply.” Additionally, the presentation will give examples of systems currently used in the allocation of vehicles and potential repercussions for dealers obtaining vehicles under those systems. A number of States have statutes providing some protections from allocation abuse. We will provide examples of both statutory language and language within specific Sales and Service Agreements that might be helpful in pursuing the fair allocation of vehicles. We will also give examples of how the lack of allocation can be used as a defense in both termination and additional point cases. Lastly, we will discuss the financial impact on a dealer that has not received sufficient allocation and recent attempts by manufacturers to implement allocation systems that bypass dealers and State laws.
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Supplemental Materials
Speakers: Michael G. Charapp, Charapp & Weiss, LLP | Eric L. Chase, Bressler, Amery & Ross, P.C.
Eric Chase and Mike Charapp will discuss several of the top legal issues for dealers in 2019, and how dealers may act proactively in response to them. Issues such as factory-mandated performance standards, self-driving vehicles, the impact of #metoo on dealerships, regulatory reform/reduction and the future of state franchise laws will be included.
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Supplemental Materials
Speaker: Joseph S. Aboyoun, Aboyoun Dobbs LLC
The session will entail the exploration of several special considerations in buy/sell negotiations and drafting, such as the so-called “money provisions” of the Buy/Sell Agreement, the contingencies (especially franchise approval), tax considerations, the ROFR, and other automotive-sensitive issues.
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Supplemental Materials
Speakers: Terrence J. O’Loughlin, Reynolds & Reynolds | Edward Somers, Buckley LLP | Timothy Yalich, Reynolds & Reynolds
Using paper for vehicle transactions has been in existence for over a century. The first car dealership was founded in 1902, the first captive finance company opened in 1919, and the first standardized pre-printed forms began circulating in 1927 for consumer vehicle sales. The retail car selling process was simple in that era. For example, in 1940, it only took one contract to sell and finance a vehicle. Today, it takes 20 to 30 forms to sell or lease a vehicle to a consumer. All of this documentation is the consequence of regulation. Federal and state governments have put into effect numerous laws for providing disclosures to protect the public. However, the electronic world has descended upon the automotive world as it has done on all other industries with the advent of ESIGN (Electronic Signatures in Global and National Commerce Act) and UETA (Uniform Electronic Transactions Act).
There are both advantages and disadvantages that come with electronic documents replacing paper. What new regulations must dealers comply with for these new processes? What new protocols must be implemented? What traditional laws must continue to be observed? New technologies invite new liabilities along with the continuing legal challenges. This session will address these issues in a pragmatic manner and provide perspective and remedies to protect dealer interests.
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Supplemental Materials
Speakers: Anthony Bento, California New Car Dealers Association | Michael Cypers, Glaser Weil LLP | Andrew Stearns, Robards & Stearns, PC
During the past several years, manufacturer-offered new vehicle subscription programs have multiplied. The significance of these programs is hotly debated – some see them as an expensive novelty, while others see manufacturer-offered vehicle subscription programs as a subversive assault on the franchise system. During this presentation, we will provide an overview of the most popular vehicle subscription programs, with an emphasis on those programs offered by manufacturers. We will then explore a specific vehicle subscription program that is the subject of a pending legality challenge, as well as related implications of state franchise law.
Presentation
Speaker: Stephen Bedell, Crowe LLP
This session will review key aspects of tax reform, guidance issued in the first year after passage, what dealers should focus on and what they should be doing to maximize their benefits.