You Auto Know®

September 2008: Powers of Attorney

        “You Auto Knows”® have addressed Powers of Attorney in the past and they are still an issue that is confronted by each and every dealership on an almost daily basis.  In fact, this author and his law firm have been involved in numerous lawsuits involving the use of a power of attorney and the challenge of the use by another family member.  G...

July 2008: Lemon Law Revisited

Your client buys a brand new SUV with a removable hardtop.  When the doors are shut, the air pressure in the vehicle causes the lift gate hatch to pop open so that the rear clasp would lift 2 to 3 inches and then settles back into its manufactured position with a 1/8” gap between the window and frame.  Your customer has the vehicle in for service and, without being satisfied with the...

June 2008: Credit Card Receipts

Inasmuch as we addressed this issue in the January, 2008 “You Auto Know”®, there will be no scenario this month.  However, the Court of Common Pleas, Franklin County in a case entitled Ferron vs. RadioShack Corp. 175 Ohio App.3d 257, 2008-Ohio-1511, further addressed the applicability of the Federal statute to the Ohio statute regarding a customer receipt containing a debit/credit card ex...

May 2008: Identity Theft – Protect Your Customers and Your Business

The stories are increasingly frequent in the news.  Consumers are being told to protect their confidential information against a new breed of criminal – identity thieves.  Armed with little more than a name and a date of birth, these new-age robbers can steal money and damage credit ratings with lightning speed – sometimes with just a click of a mouse.  Every consumer has heard ...

March 2008: Chapter 13 Bankruptcy

Scenario:Ms. Jones comes to your dealership and states she is in the middle of a bankruptcy.  Regardless, you take Ms. Jones’ information, forward it to a financial institution, and the financial institution approves the financing of the subject vehicle.  Although Ms. Jones is in Chapter 13 bankruptcy, you deliver the subject vehicle.  Months later, you receive a notice from the...

February 2008: Limits on Creditor Liability

In a 7-0 decision announced on January 31, 2008, the Ohio Supreme Court limited the amount of damages a plaintiff may recover from the creditor who financed his purchase of an allegedly defective product.  In Reagans v. MountainHigh Coachworks, Inc., 2006-Ohio-423, the court held that (1) the plaintiff can recover only up to the amount the consumer actually paid the lender under the credi...

January 2008: Arbitration Clauses Revisited

As you know, a few years ago arbitration clauses included in automobile purchase agreements were to simplify the litigation process with a disgruntled consumer.  At first, the arbitration clauses worked very well, not only on behalf of the dealer, but also on behalf of the consumer.  The reason behind this was the fact that the parties were able to have an impartial hearing within a ...

December 2007: Credit Card Receipts

Scenario:  A customer comes in, and desires to make a down payment on a vehicle.  Instead of a check, he wants to use his credit card, which is acceptable.  You process the payment and provide him with an electronic receipt that shows the amount paid, the customer’s name, last four digits of the card, and the card’s expiration date.  The next day he completes the purchase o...

September 2007: Senate Bill 117 - Update

As you are aware, my January 2007 You Auto Know® focused on Am.Sub. Senate Bill 117  and its proposed limit on the non-economic damages available to consumers who allege violations of Ohio’s Consumer Sales Practices Act (hereinafter “CSPA”).  R.C. 1345.09 allows for a consumer who establishes a violation of the CSPA to recover an amount equal to three times his actual damages. &nb...

April/May 2007: Negative Equity Revisited Again and Again

Frequently, it is important to revisit certain topics that have been discussed in the past but have not been reviewed in awhile.  Recently, there have been several questions regarding negative equity.  Although there are no new cases that would change the law, some sales personnel and managers are needlessly confused regarding the proper application of negative equity and its legalit...

February/March 2007: Salvage Vehicles Again & Again

We have addressed the issue of salvage vehicles numerous times in the past.  However, the incidence of salvage vehicles being sold unknowingly by new car dealers is increasing.  As you know, every new car dealer will not retail a salvage vehicle without the proper disclosures to the customer, if they will retail the vehicle at all.  The sale of a salvage vehicle is fraught with ...

January 2007: Senate Bill 117

Scenario:  As you are aware, my November 2006, You Auto Know® focused on the case of Whittaker vs. M. T. Automotive, Inc., 111 Ohio St. 3rd 117, 2006-Ohio-541 where the Supreme Court greatly expanded the damages that a consumer can recover in a Consumer Sales Practices Act case.  Briefly, the court stated that the consumer who is harmed under RC §1345 et seq., specifically §1345.02 a...

December 2006: Smoke-Free Employment

       Scenario:  It is mid-January, freezing cold and snowing, two of your associates are outside the service department where they are smoking.  After a few minutes another employee complains to you regarding the smoking by the service bay door.  What are your legal obligations under Ohio's new Smoke Free Law?      &nbs...

November 2006: A Sad Day for Ohio Businesses

            Scenario; Mr. Jones comes to the dealership to purchase a used vehicle.  Mr. Jones' credit is not the best.  He puts $1,500.00 down to purchase a used truck. The dealership spot delivers the vehicle after Mr. Jones has executed the buyer's contract and financing documents.  Later in the week, your finance manager...

October 2006: Powers of Attorney

Scenario: Mr. Smith comes to your dealership with his grandfather and purchases a sports car.  Pursuant to the transaction, Mr. Smith is utilizing a durable power of attorney executed by his grandfather to purchase the sports car.  Although the grandfather is present at the dealership, Mr. Smith executes all the sales documents and mortgage; however, he does not sign POA after his gr...

September 2006: A Recent Ruling by the Motor Vehicle Dealers Board

      Scenario: A dealer, after decades in the industry, attempted to sell his dealership on several occasions.  Each time, the manufacturer rejected the sale; until finally, the dealer decided to just close his doors.  He sold his inventory, parts, and customer list, and received some remuneration from the manufacturer.  It was the understanding of the surr...

July, 2006: Credit card receipts

     Scenario:  A customer comes in, and desires to make a down payment on a vehicle.  Instead of a check, he wants to use his credit card, which is acceptable.  You process the payment and provide him with an electronic receipt that shows the amount paid, the customer's name, last four digits of the card, and the card's expiration date.  The next d...

May, 2006: Buy-Sell Agreements: Is the Manufacturer’s Right of First Refusal Unlimited?

You have negotiated a deal to sell your dealership to a qualified buyer and you have executed a Buy-Sell agreement contingent only upon the manufacturer's approval of the prospective Buyer.  You submit the Buy-Sell agreement to the manufacturer, expecting no problems.  However, your contract with the manufacturer includes a clause giving the manufacturer the right of first refusal of...

April, 2006: Paperwork/Sales Contracts and Retention of Documents

Scenario:  Mr. Smith comes into the dealership seeking to purchase a used vehicle.  After test driving a few vehicles, he decides to purchase one that is still under factory warranty.  He knows, via the mileage and year of the vehicle, plus the representations of the salesperson, that there is still the balance of the factory warranty attached to the vehicle.  However, eight mo...

March, 2006: The New Lawsuit

Scenario: You receive the mail, and included in the mail are two certified letters, the first being addressed to the dealership, and the other to a former employee, who was terminated seven months ago.  You sign for both certified letters.  Upon review, you discover that the letters contained a new lawsuit, naming the dealership and a former employee as defendants.  What effect, if ...

February, 2006: Negative Equity Revisited

Occasionally, it is important to revisit certain topics that have been discussed in the past but has not been a current one.  Recently, there have been several questions regarding negative equity.  Although there are no new cases that have changed the law, some sales personnel and managers are confused regarding the proper application of negative equity and its legality in the State of O...

January, 2006: Holiday Cheer

It is the holiday season again, and, as I have stated in the past, the best policy is not to be a “scrooge” but always to remember that the dealership is responsible for the actions of its employees.  Injuries or accidents that occur as a result of too much “holiday spirit” on the dealership premises or at parties that are sponsored by the dealership may become the basis for workers’ comp...