News & Analysis as of

Car Dealerships

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

E-Commerce Having a Growing Impact on the Automotive Industry

by Foley & Lardner LLP on

Most sales projections coming out of last month’s North American International Auto Show indicate a slow, gradual, but extended decline following a banner year in 2016. However, competition and sales activity looks to be...more

New Year, Same Old Mistakes? Avoid Sexual Harassment At Your Dealership In 2017

by Fisher Phillips on

Our last several Dealership Update newsletters have focused on new developments in dealership employment law, from heightened scrutiny of dealership arbitration agreements and employee handbooks, to the union threat in the...more

The Hazy Truth Regarding Workplace Drug Testing

by Fisher Phillips on

John has been a good technician throughout his relatively short tenure at your dealership. But today he is a bit careless as he test-drives the customer vehicle he just finished working on. As John returns the car to the...more

FTC sends 2016 ECOA report to CFPB

by Ballard Spahr LLP on

The FTC has sent its annual letter to the CFPB reporting on the FTC’s activities related to compliance with the Equal Credit Opportunity Act and Regulation B. The FTC has authority to enforce the ECOA and Reg B as to...more

Commercial Contract Risk in 2017

by Foley & Lardner LLP on

Coming off a record year in car sales, it’s expected that warranty and recall costs will continue to be on the rise. With that in mind, it’s vital that OEMs and suppliers have both their foreign and domestic contracts in...more

Two States Buck FAA Preemption, While Alabama Stays the Course

Three state supreme courts tackled arbitration law in recent weeks: Alabama, North Carolina, and Rhode Island. Rhode Island reversed a construction arbitration award because it disagreed with the arbitrator’s analysis. ...more

BMW reverses its policy on internet selling restrictions for dealers following CMA action

by Bryan Cave on

In 2016, Carwow a new car portal, which introduces customers to dealers for the purchase of cars, complained to the Competition and Markets Authority (“CMA”) that BMW UK was prohibiting its dealers from listing their new BMW...more

Service Advisors at Auto Dealerships Not Exempt, Says the Ninth Circuit

by Tonkon Torp LLP on

On January 9, 2017, the Ninth Circuit issued its opinion in Navarro v. Encino Motorcars, LLC, on remand from the United States Supreme Court. It held, once again, that service advisors at car dealerships are not exempt from...more

Property Tax & Valuation Topics - Winter 2017

by Pullman & Comley, LLC on

On September 30, 2016, the Connecticut Supreme Court heard oral argument in Nutmeg Housing Development Corp. v. Colchester. On the face of it, the ad valorem valuation of a garden variety property in the suburbanizing Town...more

Certified Used Vehicles for Sale Can Have Unrepaired Defects

Used Car Dealers Not Required to Fix Safety Recalls Before Selling Automobiles - Have you recently purchased a certified used vehicle or are you considering a used car when you make your next automobile purchase? If so,...more

The U.S. Supreme Court And Workplace Class Actions

by Seyfarth Shaw LLP on

Seyfarth Synopsis: As profiled in our recent publication of the 13th Annual Workplace Class Action Litigation Report, the U.S. Supreme Court’s rulings have a profound impact on employers and the tools they may utilize to...more

Ninth Circuit Again Says Auto Dealers' Service Advisors Are Not FLSA Exempt Employees

Last year in its Encino Motorcars decision, the U.S. Supreme Court rejected the Ninth Circuit Court of Appeals’ reliance on a Department of Labor (DOL) interpretation finding that automobile dealership service advisors do not...more

Ninth Circuit Rules Service Advisors at Automotive Dealerships Are Not Exempt From Overtime Pay

by FordHarrison on

On January 9, 2017, the U.S. Ninth Circuit Court of Appeals ruled in Navarro v. Encino Motorcars, for the second time, that service advisors at automotive dealerships are not exempt from overtime. In 2015, the Ninth Circuit...more

Groundhog Day Comes Early For West Coast Auto Dealers: Another Loss In Service Advisor Exemption Battle

by Fisher Phillips on

In a disappointing but perhaps unsurprising decision, the 9th Circuit Court of Appeals once again ruled that service advisors employed by automobile dealerships do not qualify for the Section 13(b)(10)(A) overtime exemption...more

Ninth Circuit Reaffirms Service Advisors Eligible for Overtime, Setting Up Second Potential Trip to Supreme Court

by Jackson Lewis P.C. on

The U.S. Supreme Court in 2016 granted certiorari in Encino Motorcars, LLC v. Navarro to resolve a circuit split regarding whether “service advisors” at automobile dealerships are exempt from receiving overtime under the Fair...more

Automobile Dealerships and Part Suppliers: Unintended Consequences in Whistleblower Rules?

by Ruder Ware on

OSHA enforces laws that protect whistleblowers under 22 whistleblower statutes ranging from the Asbestos Hazard Emergency Response Act to the Wendell H. Ford Aviation Investment Reform Act for the 21st Century. This article...more

Jamming Out Costs New York Auto Dealerships Millions

by Reed Smith on

New York Attorney General Eric T. Schneiderman recently announced a $1.6 million settlement with two auto dealerships, SG Hylan Motors and Best Auto Outlet, Inc., who were found to have engaged in jamming schemes between 2010...more

OnSite Solutions to Pay $50,000 to Settle Race Discrimination Charges

Manager Replaced Black Workers With Whites and Hispanics In Order to "Sprinkle a Little Salt," Federal Agency Charged - OKLAHOMA CITY - Automobile detailing business OnSite Solutions, LLC will pay $50,000 to settle a...more

The Country’s In For A Big Change…Are You Ready?

by Fisher Phillips on

The time is quickly running out for you to make your decision about what you’re going to do. Which direction will you choose? Some have already made up their minds and are steadfast in their decision. Some are still...more

Leave The Political Boxing Gloves At The Office Door

by Fisher Phillips on

We love a good political fight, but dealerships would be well-advised to check the gloves at the office door and instead heed the wisdom offered long ago by Calvin Coolidge: “No man ever listened himself out of a job.”...more

Yet Another Micro-Unit Victory, NLRB Refuses to Review Decision Certifying Service Technicians-Only Bargaining Unit

by Seyfarth Shaw LLP on

In the midst of what appears to be a proliferation of “micro-units,” on Tuesday, October 18, 2016, the NLRB declined to reconsider its decision to certify a unit of 14 service technicians employed by the Buena Park Honda...more

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