The following case is a true case of ignorance and BAU. For years, we have been educating dealers of inherent pitfalls in their current sales processes. So, when I hear stories like this, I take it heavy. Especially because comments like "I've been doing business this way for years." Or recently, "I'm not afraid of..." Are not acceptable, since willful ignorance is not a legal defense. the number one challenge a dealer has is training quality people to meet the demands of today's consumers. Ask your manager if they have been finger phoned on a T.O. Lately. If you don't know what that is, Call me. Read this case, look at your business honestly, then call me.

                                  A Death Sentence for Misrepresentations? ** ** * * ** **

Source: Michael Charapp, Esq., Charapp & Weiss, LLP

Driving Your Success, June, 2013 ** ** * * ** **

So you don’t think misrepresentations can lead to a death sentence? It can if you are a franchised motor vehicle dealership.

A New York franchised dealer learned this lesson the hard way. The dealership was the target of a lawsuit by the Attorney General of the State of New York as a result of “many complaints of...unethical conduct....”. The court found a pattern of improper business practices violating state and federal consumer protection statutes including “strong arm sales methods and unethical conduct”.

Based on this finding, the manufacturer sent the dealership a notice terminating its franchise. The dealer filed a court action challenging the termination. The court found that the manufacturer had “due cause” to terminate this dealer’s franchise as a result of the material breach of its franchise agreement requirement that it at all times maintain high standards of ethics in its business practices. It went on to find that the court decision in the attorney general’s lawsuit provided “ample basis for [the franchisor’s] termination decision”.