News & Analysis as of

Dealerships

Lathrop GPM

Court Denies Distributor’s Motion for Summary Judgment on Wisconsin Fair Dealership Law Claims

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A federal court in Wisconsin recently denied a haircare product dealer’s motion for summary judgment on its Wisconsin Fair Dealership Law (WFDL) and breach of contract claims against the dealer’s national distributor. Brava...more

Fisher Phillips

What Dealers Should Do About the CDK Cyberattack

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The recent cyberattack that took down CDK Global’s software platform has left dealers scrambling to continue operations. While the immediate focus may have been the potential breach of customer data and the ability to...more

Lathrop GPM

New Jersey Appellate Court Holds Automotive Retailers Association Has Associational Standing to Assert Claims Under New Jersey...

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A New Jersey appellate court, reversing a summary judgment decision, recently held that the New Jersey Coalition of Automotive Retailers, Inc. (the Coalition) had associational standing to bring an action against Ford Motor...more

Miller Canfield

Michigan Court of Appeals Enforces Arbitration Provision in Auto Lease

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In a rare published decision, the Michigan Court of Appeals enforced a provision in an auto lease that allowed either party to demand arbitration, even though the dealer had assigned the lease to a finance company and no...more

Katten Muchin Rosenman LLP

Updates on EV Tax Credits

Over the past several months the US Treasury Department (Treasury) and the Internal Revenue Service (IRS) have been busy issuing regulations and administrative guidance with respect to Section 30D (New Clean Vehicle Tax...more

McGlinchey Stafford

Tribal Nations Open Innovative EV Dealer Licenses, Tax Options

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An issue that continues to captivate the electric vehicle manufacturing and financing industry is state law that prevents vehicle manufacturers from directly selling vehicles to buyers. In many states, a vehicle must be...more

Carlton Fields

Alabama Supreme Court Clarifies Courts’ Authority to Issue Preliminary Injunctions in Disputes Subject to Arbitration

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In its recent decision in Hyundai Construction Equipment Americas Inc. v. Southern Lift Trucks LLC, the Alabama Supreme Court considered whether the trial court erred in granting preliminary injunctive relief in a dispute...more

Lathrop GPM

Tennessee Federal Court Denies Franchisor’s Motion to Dismiss Claims of Bad Faith in Denying Relocation

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A federal court in Tennessee denied a manufacturer’s motion to dismiss claims that it acted in bad faith and constructively terminated a dealership when it denied the dealer’s proposed relocation sites. Hyundai Subaru of...more

Lathrop GPM

New Jersey Federal Court Holds Automobile Retailer Association Cannot State Claim Under Franchise Practices Act

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A federal court in New Jersey granted summary judgment to a car manufacturer, holding that a retailer coalition cannot state a claim on behalf of its members under the New Jersey Franchise Practices Act (NJFPA). N.J. Coal. of...more

Ballard Spahr LLP

Massachusetts Attorney General settles case alleging discriminatory pricing of auto add-on products

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On January 31, 2023, the Massachusetts Attorney General’s Office (“Mass AG”) announced a settlement with Hometown Auto Framingham, Inc. (“Hometown Auto”), resolving allegations that the auto dealership had engaged in unfair,...more

McGlinchey Stafford

FTC’s Proposed Dealer Trade Rules Sets Sights on “Add-on” Product Sales

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On July 13, 2022, the FTC’s proposed Motor Vehicle Dealers Trade Regulation Rule, was published in the Federal Register. The FTC’s stated purpose of the proposed rule is to “protect consumers and honest dealers by making the...more

Holland & Knight LLP

New Rules of the Road: FTC's Proposed Changes to Car, Boat, Motorcycle and RV Sales Practices

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The Federal Trade Commission (FTC) has issued a new proposed rule that aims to make the "motor vehicle"-buying process more clear and competitive, and also allow the FTC to recover money when consumers are misled or charged...more

Ballard Spahr LLP

FTC announces $10 million settlement with auto dealerships for alleged unlawful add-on charges and discriminatory conduct

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The FTC has announced the settlement of a lawsuit filed jointly with the Illinois Attorney General against a group of auto dealerships that alleged the dealerships violated federal and state law by engaging in deceptive...more

Cozen O'Connor

Auto Dealer Pays $10 Million in Record-Setting Settlement with the FTC and Illinois

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The FTC and Illinois AG Kwame Raoul reached a settlement with multistate auto dealership Edward Napleton Automotive Group and affiliate persons and dealerships (collectively, “Napleton”) to resolve allegations that Napleton...more

Fisher Phillips

Virginia Wage Law Changes A Reminder to All Dealerships

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The implementation of the Virginia Overtime Wage Act (VOWA) on July 1 serves as a reminder to all dealerships across the country to consider federal, state, and local law when classifying employees for wage and hour purposes....more

ArentFox Schiff

Impact on New York Dealership Operations of Governor Cuomo’s PAUSE Executive Order

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On Friday, March 20, Governor Andrew Cuomo signed the “New York State on PAUSE” Executive Order (“PAUSE,” Executive Order No. 202.8: Continuing Temporary Suspension and Modification of Laws Relating to the Disaster...more

Lewitt Hackman

Franchisee 101: Don’t Terminate the Hand That Delivers Your Pizza

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A Wisconsin pizza maker, Heggie’s Pizza (Heggie’s) argued that its relationship with a purported pizza distributor A & B Distribution (A&B), did not meet the Wisconsin Fair Dealership Law (WFDL) definition of a “dealership.”...more

Seyfarth Shaw LLP

Challenge to North Dakota Farm Equipment Dealer Statute May Give New Life to Contract Clause Arguments by Manufacturers

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Article I, Section 10, Clause 1 of the United States Constitution provides that “[n]o state shall . . . pass any . . . Law Impairing the Obligation of Contracts . . . .” On August 2, 2019, a panel of the US Court of Appeals...more

Seyfarth Shaw LLP

2019 NAMVBC Fall Workshop Features Panels on Internet Vehicle Sales and Dealer License Fraud

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The National Association of Motor Vehicle Boards and Commissions (“NAMVBC”) held its annual fall workshop from September 19-21, 2019 in Sacramento, California. The three day workshop featured panel discussions about internet...more

Burns & Levinson LLP

Recent Case Invalidates Many Dealership Sales Person Pay Plans: What You Need to Know to Stay in Compliance

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On May 8, 2019, the Massachusetts Supreme Judicial Court (the “SJC”) issued an important decision concerning the interpretation of the Massachusetts Wage Act, and related regulations. The decision issued by the SJC, titled...more

Lewitt Hackman

Franchisor 101: No Need for Good Cause

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A Wisconsin federal judge granted summary judgment in favor of a food service and cleaning equipment maker (“Stoelting”), ruling that minimum purchase requirements under two dealer agreements were not a franchise fee under...more

Lewitt Hackman

Franchisee 101: A Lifeline Franchise?

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When you pay your phone bill, part of the taxes go into a fund used by the government to subsidize cell phone service to qualifying individuals, under federal and state Lifeline programs. Phones typically reach the end...more

Foley & Lardner LLP

Vehicle Subscription Plans Gaining More Attention, Scrutiny

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Consumers are familiar with the two traditional options for vehicle ownership—buy a car, or lease a car. However, a new option has been emerging in recent years: vehicle subscriptions. A vehicle subscription includes a set...more

Fisher Phillips

Ask Yourself These 7 Questions To Find Out If You Are Ready For A Harassment Complaint

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Hardly a day passes anymore without some famous (or infamous) person being accused of or admitting to engaging in inappropriate sexual conduct. In many of these situations, the conduct is so egregious that one could...more

Foley & Lardner LLP

Industry Coalition Obtains Preliminary Injunction Against Enforcement of North Dakota Dealer Statute

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On December 14, 2017, the U.S. District Court in Bismarck, North Dakota issued a preliminary injunction preventing the enforcement of recently enacted amendments to the North Dakota Farm Equipment Dealership Statute known as...more

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