News & Analysis as of

Car Dealerships

Non-Signatories Succeed In Compelling Arbitration In State Courts

The high courts of two states have allowed non-signatories to compel arbitration in recent weeks. The cases show courts are addressing non-signatory issues using different standards and raise important drafting issues for...more

Upcoming SCOTUS Term Promises To Be A Blockbuster

by Fisher Phillips on

If you are the kind of person who gets excited by hot-button legal topics and monumental court decisions, this is the Supreme Court term for you. The SCOTUS kicked off their 2017-2018 term several days ago by hearing...more

Supreme Court To Again Evaluate Whether Auto Service Advisors Are Exempt From Overtime

by Tonkon Torp LLP on

On September 28, 2017, the United States Supreme Court agreed to revisit the question of whether service advisors at car dealerships are exempt from overtime. The federal FLSA exempts from overtime "any salesman,...more

Service Adviser Exemption Goes Back to the Supreme Court

by Franczek Radelet P.C. on

On September 28, 2017, the U.S. Supreme Court agreed to hear a case in which the Court will be asked to decide whether the FLSA’s overtime exemption covering “any salesman, partsman, or mechanic primarily engaged in selling...more

Tennessee Business Court Awards Big Bucks against Violator of Tennessee Consumer Protection Act

by Butler Snow LLP on

On May 23, 2017, in Nissan North America, Inc. v. Tustin Import Auto Sales, LLC, et al., No. 16-117-BC, the Tennessee Business Court found that the only remaining defendant, Raymond Enriquez, had defrauded the plaintiff and...more

Lessons From Two Auto Dealer Arbitrations About Nonsignatories

In two recent decisions, the Alabama Supreme Court made clear that if an arbitration clause specifies it only applies to disputes between the two parties who sign the clause, that will be strictly enforced. No third party...more

Circuit Court Finds Putative Class Affidavits, Combined With Other Records, May Satisfy Ascertainability Requirement

by Carlton Fields on

Defendants BMW and Creditsmarts were parties to a marketing agreement through which BMW offered its direct automotive “up2drive” loans to borrowers at participating independent car dealers through Creditsmarts’ internet-based...more

“Coercive” And “Disturbing” Arbitration Agreement Upheld Over Labor Commissioner’s Protest

by Seyfarth Shaw LLP on

Seyfarth Synopsis: In OTO, LLC v. Kho, the California Labor Commissioner challenged a car dealership’s mandatory arbitration agreement. The agreement required employment disputes to be arbitrated under normal civil litigation...more

Third Circuit Introduces New Uncertainty While Attempting to Clarify Ascertainability Jurisprudence

by Pepper Hamilton LLP on

On August 16, the Third Circuit gave the plaintiff a pass for failing to pursue evidence necessary to determine whether its proposed class was ascertainable and took the opportunity to clarify that affidavits may be used, at...more

The State AG Report Weekly Update

by Cozen O'Connor on

Breaking News- Arkansas Attorney General Is New Chairman of Republican Attorneys General Association- Earlier today, the Republican Attorneys General Association (“RAGA”) named Arkansas AG Leslie Rutledge as its new...more

License to Sue? Court Rules That a Motor Vehicle Dealer Does Not Need a Dealer’s License to Bring a Statutory Claim for...

by Mulcahy LLP on

California’s motor vehicle code allows dealers to bring suit against manufacturers for terminating the dealer without good cause. See California Vehicle Code §§ 11713.3, 3060, 3061 and 3066. As currently written, the...more

Will Dealerships And Third-Party Detailers Continue To Face Increased DOL Scrutiny?

by Fisher Phillips on

During the Obama administration, the U.S. Department of Labor (DOL) placed special emphasis on scrutinizing the alleged misclassification of independent contractors and joint employer relationships. Dealerships were notably...more

Class Action Suits Against Massachusetts Car Dealers on the Rise

by Mintz Levin on

Spurred by a recent change in a Massachusetts wage and hour regulation, plaintiffs’ attorneys are aggressively pursuing class action lawsuits seeking unpaid overtime premium pay on behalf of car salespeople across the...more

EU & Competition Law Update – July 2017

by Bryan Cave on

On 14 June 2017, the EU Commission announced that it was opening an investigation into Sanrio, owner of the Hello Kitty brand. Sanrio have been accused by the Commission of an infringement of Article 101 TFEU, the prohibition...more

Oregon's New Vehicle and Bike Taxes

by Stoel Rives LLP on

Famously opposed to a “sales” tax (except on marijuana), Oregon will soon add a half-percent “privilege” tax on new car dealers to its growing list of excise taxes, including car rentals and transient lodging, not to mention...more

Car Dealership Agrees to Consent Order to Pay $5.1 Million in Debt Forgiveness

by Goodwin on

On June 2, 2017, the Florida Attorney General (“Florida AG”) announced that it entered? into a consent order with a Florida car dealership and its president following allegations that the dealership and the individual...more

The Ninth Circuit Goes All In. Will the Supreme Court Call?

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Recently the Ninth Circuit doubled down on its decision that service advisers at car dealerships are not exempt from the FLSA, despite being overturned once by the U.S. Supreme Court....more

Rejection Junction What’s Your Function

It’s happened to every dealer, more so in the last eight or so years than ever – the lender has approved funding; the RISC has been signed by the customer and dealer, and assigned by the dealer to the lender; the title work...more

A Dealership’s Guide To Sexual Orientation Discrimination In The Workplace

by Fisher Phillips on

Following the landmark 2015 Supreme Court decision making same-sex marriage legal across the country, federal courts have grappled with determining which types of claims are actionable under the “sex” provision of Title VII,...more

Selling a Car, Texting and the TCPA

by Hinshaw & Culbertson LLP on

After a car dealership (allegedly) texted a person who listed a car for sale on Craiglist, the would be seller filed a class action suit against the dealer claiming the texts were unsolicited, made without consent, and...more

Tesla “Franchisee” Thwarted in Utah

by Fox Rothschild LLP on

Tesla, the electric vehicle automaker, recently lost a round in the Supreme Court of Utah. Tesla set up a wholly-owned subsidiary called “Tesla UT” that was to hold a license to sell Tesla’s cars to the public. The Utah...more

Question: When Is a $3 Million Attorney Fee Award Painful?

by Benesch on

Answer: When your fee request was $25 million higher. And so it was in In Re: Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, pending in federal court in San Francisco. ...more

New Jersey Says Non-Payment Of Arbitration Fees is Breach of Agreement

The New Jersey Supreme Court refused to allow a respondent to benefit from its refusal to pay arbitration fees in Roach v. BM Motoring, LLC, 2017 WL 931430 (NJ March 9, 2017)....more

California Auto Dealers Beware: Commission-Paid Dealership Employees Entitled To Separate Rest Period Pay

by Fisher Phillips on

A California appellate court ruled on February 28, 2017, that employees paid on a commission basis must be separately compensated for legally required rest periods (Vaquero v. Stoneledge Furniture LLC). Although this decision...more

Auto Dealership Liability for Accidents Occurring During Test Drives: How to Protect Your Dealership

by Jaburg Wilk on

Prospective car buyers are no different than the drivers we encounter daily on the road: some are skilled, some are not so skilled. Add to that the prospective buyer’s unfamiliarity with the vehicle they are test-driving,...more

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