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Over the past several years, we have noticed a significant increase in the number of records examinations (sometimes referred to as audits) of Wisconsin automobile dealerships conducted by the Wisconsin Department of Financial Institutions, Banking Division (“DFI”). All dealers, by virtue of transacting retail installment contracts and consumer leases (collectively, “credit transactions”), must be licensed both as dealers and sales finance companies.
Read MoreRecently, government regulators and consumer advocates have heightened their focus on the sale of guaranteed asset protection (“GAP”) products, credit insurance, service contracts, extended warranties, theft deterrent products such as etch, and other F&I products designed to protect car buyers from large out of pocket losses associated with automobile leasing or ownership, which we will collectively refer to as “voluntary protection products.”
Read MoreOn April 2, 2019, the Wisconsin Supreme Court issued a decision in a closely-followed
appeal involving the rights of members of a Wisconsin Limited Liability Company
(“LLC”) to sue LLC managers or other members.
Published in the National Association of Dealer Counsel Defender, November/December 2018.
Read MoreBack in October 2018, the Federal Trade Commission (“FTC”) announced a settlement and proposed consent order involving a Washington, DC, area dealer group relating to allegations that the group mailed thousands of recall notices to vehicle owners with the heading “URGENT RECALL NOTICE,” even though the vast majority of consumers who were sent these notices did not have a vehicle subject to an open recall.
Read MoreCONFERENCE PRESENTATION: On October 8, 2018, Attorney Eric Baker participated in a panel discussion at the National Association of Dealer Counsel 2018 Fall Conference, in Chicago, IL, along with Ted Stockton, of The Fontana Group, Inc., and Attorney Paul Norman, of Boardman & Clark LLP.
Read MoreThe U.S. DOJ has in recent years reported a number of settlements of alleged violations of the Service members Civil Relief Act (SCRA) relating to vehicle lease terminations. Dealers should be mindful of additional legal obligations when a servicemember seeks to terminate a lease…
Read MoreThe United States Supreme Court recently decided, 5-4, that “service advisors” (also known as service writers) working at automobile, truck, or farm implement dealerships, are exempt from overtime pay requirements under the federal Fair Labor Standards Act (“FLSA”). Here’s what dealers need to know.
Read MoreIn December 2017, FTC obtained a consent decree against a dealer relating to allegations of deceptive advertising, including claims that the dealer promoted favorable financing terms in Spanish in a Spanish-language ad, but material limitations were disclosed only in fine-print English at the bottom of the ads.
Read MoreWisDOT issued new guidance on vehicle purchases by minors. Parent or legal guardian consent is required for license plate registration. Minors do not need consent when getting only a title, without license plate registration. Consent is required even when an adult is also registering as a co-owner or co-lessee.
Read MoreUsed car ads claiming that vehicles are safe or have been inspected should include clear and conspicuous disclosures about the possibility of open safety recalls, including how consumers can find out about open recalls. The FTC and State AGs have initiated enforcement actions relating to failure to make such disclosures.
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