Join
Contact

2021 NADC Virtual Annual Member Conference

Date postedMarch 21, 2024
Event Materials,

Speakers: Andrew Koblenz, NADA ,Executive Vice President and General Counsel | Paul Metrey, NADA, Vice President, Regulatory Affairs 

During this session, NADA executives Andy Koblenz and Paul Metrey highlighted salient and breaking federal regulatory developments affecting auto dealers on a range of topics including the Presidential transition, the shift to EVs, federal COVID relief measures, Arizona DMS litigation, LIFO recapture, the assault on dealer participation and voluntary protection products, the proliferation of “All-In” APR legislation, the status of small business credit application and FTC Customer Information Safeguards rulemakings, and more.

Presentation 
Supplemental Materials 

Speakers: Eric Chase, Bressler, Amery & Ross, P.C., Partner | Michael Charapp, Esq., Charapp & Weiss, LLP, Partner

Eric Chase and Michael Charapp discussed selected leading topics in the law for car dealers during 2021 and discussed them interactively with the members. A handout included the Defender publication of Eric Chase’s Top 25 article, published in January 2021. As in the past, the presentation included important developments arising in the first few months of 2021, to make the information as current as possible.

Presentation 
Supplemental Materials 

Speakers: Aaron Jacoby, Arent Fox, Managing Partner, Los Angeles (Moderator) | Erin Kerrigan, Kerrigan Advisors, Founder & Managing Director | Robert Morrison, ASA BV/IA, Rosenfield and Company, PLLC, Firm Leader: Business Advisory Services | Kevin Nill, Haig Partners, Partner | Ken Rosenfield, Rosenfield and Company, PLLC, Managing Partner

This panel discussed how COVID-19 has impacted the values and valuation of auto dealerships and buy/sell transactions.

Session Outline: Impact of COVID-19 on Valuations and Buy / Sell Transactions

Speakers: Andrea Amico, Privacy4Cars, Founder & CEO | Eric Johnson, Hudson Cook, LLP, Partner

Are rapidly evolving in-car technologies and privacy laws on a collision course? While the impact of privacy laws is extensively discussed in dealer settings when it comes to “traditional” information systems (DMSs, emails, web, etc.), somehow the topic of Nonpublic Personal Information collected by the vehicles themselves is often left behind. This dealer “blind spot” can result in significant liabilities (to the tune of hundreds of dollars per day for every vehicle). How can dealers best prepare to reduce and mitigate their exposure? In this session the following things were covered:

Discussed a number of State privacy laws, primarily focusing on the California Consumer Privacy Act (CCPA) which has become a blueprint for a number of other State legislatures and proposed federal bills. Addressed the definition of Nonpublic Personal Information, Covered Devices, the rights granted to consumers (and consequently, the duties dealers must be able to perform), what is happening at both the state and federal levels on the issue of consumer privacy, and other relevant laws, including record disposal laws and a new breed of cybersecurity laws.
Discussed what (and how much) information vehicles collect and clarify once for all: are vehicles “Covered Devices” and what data collected by vehicles is “Personal Information”? Compared how the protocols defined by law may – or may not – be met by vehicles, to identify the gaps dealers will have to manage.
Shared the results of a statistical study performed at California and Massachusetts dealerships in 4Q 2020, and discussed the risk implications of current practices under privacy, data security, and UDAP laws.
Highlighted some options dealers may have when tackling the issue of Personal Information and data collected by vehicles, and offer some strategies to minimize exposure.

Presentation 
Supplemental Materials 

Speakers: Jonathan Marks, Baker Tilly US, LLP, Partner

Root cause analysis is a tool to help identify not only what and how an event occurred, but also why it happened. This analysis is a key element of a fraud risk management program and is now a best practice or hallmark of an organizations compliance program. When able to determine why an event or failure occurred, it is then possible to recommend workable corrective measures that deter future fraud events of the type observed. It is important that those conducting the root cause analysis are thinking critically by asking the right questions (sometimes probing), applying the proper level of skepticism, and when appropriate examining the information (evidence) from multiple perspectives.

This program was designed to introduce the common methods used for conducting root cause analysis and to develop an understanding of how to identify root causes (not just causal factors) using proven techniques. In addition, it demonstrated how to initiate a root cause analysis incident exercise and work with senior management, legal, compliance, and internal audit on an appropriate resolution. We introduced the “spheres” acting around the “meta-model of fraud” and how to use those “spheres” in the root cause process. Finally, this program presented the “three lines of defense”, which provides the board and senior management with a better understanding where the break downs occurred.

Presentation 

Speakers: Daniel Iosue, CFP, The Rawls Group, Partner | Eric Pridgen, Underwood & Roberts, PLLC, Attorney

As a family-owned business, we understand first-hand how family dynamics influences daily business operations and decisions AND how the business impacts family interactions. Many of your clients experience similar dynamics but too often they are overlooked as just being “what it is.”  In fact, the dynamics at play within the family can create incredible dysfunction in the workplace as well as at home. Dysfunctional dynamics can devalue the family business, limit growth, and demoralize employees. In this session we will dive into how to overcome these challenges. With this presentation we answered the question of who is considered family in the business, we identified what core expectations to set, and what governance policies are and how your clients can benefit from them.

Presentation 
Supplemental Materials 

Speakers: Eric Johnson, Hudson Cook, LLP, Partner | Terry O’Loughlin, Reynolds & Reynolds, Director of Compliance | Chris Wager, Mac Murray & Shuster, Senior Attorney

This session will address a series of issues regarding remote commercial relations with dealer customers. It will include the following legal issues:

• Advertising Remotely
• TCPA
• FTC’s Cooling-Off Rule
• State Home Solicitation Sales Laws (door-to-door)
• Off-Site Sales and Delivery Issues
• Red Flags Rule Requirements
• Dealer Agreement Issues
• Sunday Blue Laws
• Insurance Issues and Risks
• Other Considerations and Tips and Recommendations

Presentation 
Supplemental Materials 

Speakers: Jim Appleton, NJCAR, President | Paul Norman, Boardman & Clark, Attorney | Joe Roesner, The Fontana Group, President | Ron Smith, Stoll Keenon Ogden, Member | Donn Wray, Stoll Keenon Ogden, Co-Chair, Auto Dealer Services

This program will be an examination of manufacturer programs which increase dealer invoice relative to vehicle MSRP and then replace all or part of that lost margin with conditional incentives. These incentive payments are conditioned on potentially costly elements, including significant margin if the dealer either builds a separate facility or substantially upgrades current facilities.

Actual case studies will be presented consisting of examination of three legal proceedings and more importantly the economic impacts of these programs on mid to small market dueled dealers. We have found that often times dealers do not realize the long-term value of an incremental franchise and the overall lifetime value of the customer relationship.

Presentation 
Supplemental Materials 

Speakers: Katharine Batista, Offit Kurman, Attorney | Ari Karen, Offit Kurman, Principal

In 2021, car dealerships will see not only a new administration and new legislation, and hopefully, the end to a pandemic, but also a new consumer. This means adapting business models and, importantly, your workforce. Ari Karen and Katharine Batista discussed how to handle the COVID-19 vaccine as it’s rolled out to average Americans, including whether you can mandate it, what excuses you must consider and how to treat employees who refused. Mr. Karen and Ms. Batista discussed integrating long-term teleworking into your workforce, modifying job positions to meet new consumer demands and how to anticipate and comply with the new laws we are likely to see from a Biden administration.

Presentation 
Supplemental Materials 

Speakers: Connor Duncan, Live Oak Bank, VP, Dealer Services | Jason Lumpkin, Live Oak Bank, SVP, Dealer Services

This presentation focused on educating M&A and advisory professionals on how the SBA loan programs work, the benefits and features of the SBA loan products, and how they can be utilized to facilitate a dealership acquisition.

Why this matters: More than 93% of privately owned dealers were able to obtain a PPP loan, and have now had recent positive experience with the SBA program. However, most dealers and their advisors are unfamiliar with the flagship SBA loan programs and how they can be utilized for M&A. With the SBA products dealers can obtain up to 90% financing on terms of between 10-25 years for the purchase of a franchise and associated real estate. With the average age of the dealer body increasing, and blue sky values at an all-time high – it has become increasingly difficult for sellers to perpetuate their store to the next generation and even more difficult for a first time dealer to buy a franchise. This product can be an excellent solution to the succession challenge facing dealers, and this presentation focused on educating NADC attorneys on the nuisances of the program and products.

Presentation 

Categories

Most Recent Posts