Dealership Advisor

Legal news and trends affecting the auto dealership industry

Sep 20, 2018

Three Things Auto Dealers Need to Know About the FTC Used Car Buyer’s Guide

Though its usage rules may seem straightforward, The Federal Trade Commission’s (“FTC”) Used Car Buyer’s Guide includes several requirements that seem to catch many auto dealers off guard. First and foremost, the FTC requires it be displayed on all used cars sold by a dealer. The Guide must contain details concerning the vehicle’s background along [...]

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Aug 31, 2018

Automobile Advertising – Ohio Guidelines From A to Z

New and used automotive dealers and their marketing partners should be aware of the many Ohio laws and regulations affecting their vehicle advertisements. From the Availability of vehicles to complying with Regulation Z, here is a comprehensive guide that addresses common areas of concern, many that we see frequently in our advertising review work. Auto dealers [...]

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Aug 24, 2018

Tensions Begin to Rise in Car Parts Price Fixing Case

Auto dealers and repair shops have been feeling an economic squeeze, with pressure mounting on multiple fronts. First, revenues have been suppressed by insurance companies as we previously shared. Second, auto part costs are high – maybe too high. In response, a group of auto dealers have sued KYB, an international manufacturer of shock absorbers, [...]

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Jun 01, 2018

What Dealers Can Expect if Trade Wars Expand to the Auto Industry

Citing national security concerns, the White House is investigating the possibility of imposing tariffs on imported automobiles and automotive parts in an effort to revitalize domestic auto production. Moody’s Analytics estimates that (assuming trade partners do not retaliate) a 25% tariff would add 23,000 jobs to the economy and boost U.S. production by 300,000 vehicles. [...]

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Apr 05, 2018

After Lengthy Litigation, M&S Automotive Team Successful in Sixth Circuit Court of Appeals

In a decision that has ended a matter in its 8th year of litigation, the Sixth Circuit Court of Appeals ruled yesterday that a former Chrysler franchisee that lost a case five years ago and failed to appeal, cannot re-litigate the same issues. M&S attorneys Jay McKirahan and Patrick Skilliter represent the successful dealer, Fred [...]

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Mar 26, 2018

Ohio Now Accepting Electronic Signatures on Federal Odometer Statements

In a world of technological innovations, the automobile industry is no stranger to electronic trends.  However, regulations requiring car dealers to retain physical copies of documents and obtain “wet” signatures often make the legal side of the auto industry feel like a metaphorical Stone Age. The good news is that the tide is slowly shifting. [...]

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Feb 26, 2018

But Where Does the Buyer’s Guide Go?

Following the FTC’s amendments to the Used Car rule in November 2016, an abundance of questions have plagued automobile dealers concerning compliance with the rule. One of the most common questions has been how to properly display the Buyer’s Guide containing details such as the vehicle information and available warranties. The guide must be affixed [...]

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Jan 25, 2018

Dealers and Finance Companies Scramble to Comply with Changes to the Military Lending Act

While the nation prepared for the holiday season this past December, the Department of Defense (DOD) issued a new interpretation of the Military Lending Act (MLA) resulting in potentially severe implications for automobile dealers offering financing to active military service members. As of December 17, 2017, dealers and creditors providing credit-related products and services such [...]

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Dec 11, 2017

Auto Dealers Win as Ohio Court Rejects Class Action Lawsuit

It’s a win for auto dealers as a recent lawsuit alleging violations of the Ohio Consumer Sales Practices Act (OCSPA) failed to achieve class action certification. This case illustrates the numerous challenges faced by these types of lawsuits. In Konarzewski v. Ganley, Inc., the Ohio Eighth District Court of Appeals rejected a class action for [...]

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Nov 07, 2017

Auto Repair Shops Claim Insurance Price-Fixing Breaks the Industry

In 2015, dozens of auto repair shops banded together to file a series of lawsuits across the country alleging that insurance companies, including State Farm, Allstate, and Geico, fixed prices for collision repairs in violation of federal antitrust laws. These lawsuits claimed the insurers engaged in two types of misconduct.  First, the repair shops – [...]

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