Dealership Advisor

Legal news and trends affecting the auto dealership industry

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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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 [...]

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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. [...]

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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 [...]

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May 26, 2017

New Law Brings Improvements to Ohio’s Unclaimed Vehicle Affidavit Process

As of April 4th, 2017, HB 341 has taken effect to provide an easier affidavit process for repair shops attempting to obtain title to an unclaimed vehicle. The changes expand the scope of the unclaimed vehicle title law and should lower costs for this action. Although the process for obtaining a title remains unchanged, the [...]

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May 01, 2017

NY Attorney General Cracks Down on Undisclosed Safety Recalls

Following on the heels of the FTC’s 2016 administrative decisions requiring dealers who claim their used cars are “certified pre-owned” to have all safety recalls repaired or clearly disclose qualifying information related to open safety recalls, the New York Attorney General recently announced settlements with 104 dealers it identified as selling vehicles with undisclosed open [...]

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Jan 26, 2017

Open Safety Recalls on Certified Pre-Owned Cars: Disclosure is the Key

The Federal Trade Commission wanted to “send a signal” to auto dealers : if you sell a used car as “certified pre-owned” or tell a buyer that it is otherwise safe, you must disclose clearly and conspicuously all material information regarding open safety recalls.  Does that mean that a dealer can’t sell a car with [...]

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