Dealership Advisor

Legal news and trends affecting the auto dealership industry

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 Martin Motor Company. A copy [...]

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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. Auto dealers may not yet [...]

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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 to the vehicle in a [...]

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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 as GAP coverage, credit life [...]

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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 consumers who purchased vehicles from [...]

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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 – none of which participated in [...]

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Oct 30, 2017

Ohio Law: “As Is” Only Protects a Car Dealer from Implied Warranty Claims

Many car dealers believe that selling a vehicle “as is” prevents the buyer from bringing a lawsuit for defects. Unfortunately, “as is” does not bar all future claims. In Ohio, a buyer can maintain a fraud claim against a used car dealer even if the vehicle is sold “as is” if the dealer knew or should have known of vehicle defects.

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Oct 24, 2017

Insurer’s Cost-Saving Requirements for Auto Repairs Lead to Devastating (and Costly) Consequences

A Texas jury recently awarded a husband and wife $42 million in a lawsuit alleging that negligent repairs caused them to suffer serious and chronic injuries in a 2013 car accident. The repair shop, John Eagle Collision Center, had previously glued the roof of their 2010 Honda Fit to the safety frame rather than welding it – in conflict with [...]

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Oct 12, 2017

Proposed Legislation Targets Sales of Cars with Open Recalls

CarMax, the largest U.S. used car retailer, is continuing to find itself in hot water for selling vehicles with open recalls. Most recently,  the Consumers for Auto Reliability and Safety (CARS) Foundation led a study that found one in four cars sold by CarMax had open safety recalls, including significant safety issues like defective airbags. Despite these open recalls, CarMax [...]

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Jun 19, 2017

Dealer Receives 5 Million Reasons to Comply with Consumer Protection Regulations

In a recent consent order with the Florida Attorney General’s office, a Jacksonville car dealer will waive approximately $5 million dollars in consumer debt.  The case may serve as a window into practices that regulators will be increasingly targeting. The dealer in this case installed GPS devices without consumer knowledge or consent to track and repossess hundreds of vehicles. Additionally, [...]

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