March 2016 FINAl Mag MAR16_MidAtlanticDealerNews 2 23 2016

More documents

Recommendations

Info

ELECTRONIC ODOMETER DISCLOSURE EDGES TOWARD REALITY By Anthony Bush, Esq. and Grace Strom Power, Esq., Eckert Seamans Cherin & Mellott Anthony Bush is a Member in Eckert Seamans’ Princeton Office with over two decades of experience with automotive issues. He counsels a wide spectrum of clients including automobile dealerships, operators of wholesale motor vehicle auctions, auto parts distributors, finance companies, and auto body repair facilities. Tony and Eckert Seamans have expertise representing dealers in consumer and corporate litigation, land use matters, business counseling, employment matters, franchise disputes, before the New Jersey Motor Vehicle Commission and New Jersey Department of Law and Public Safety, Division of Consumer Affairs, and in legislative and regulatory issues affecting the automotive industry. Grace Strom Power is an Associate in the Princeton Office and has over 10 years of government affairs experience in both the public and private sectors, advising and representing clients before the New Jersey State Legislature, Office of the Governor, state and local agencies, commissions and regulatory authorities. The federal government has granted States the authority to allow Electronic Signatures (‘E-Signatures”) on Odometer disclosures, paving the way for paperless document processing. In December 2015, President Obama signed the Fixing America’s Surface Transportation (“FAST”) Act. Under the new law, each state can decide whether to allow electronic signature on odometer forms, which could speed up the finance and insurance process and reduce errors and fraud. The Odometer form was the last document for which the federal government still required an actual or wet signature from the consumer in the car buying process. It is now up to the States to implement this law in coordination with federal transportation officials. This new law only gives States the authority to create their own electronic odometer disclosure programs, but each state must pass its own law. To date, no legislation to allow for such changes has been introduced in the MidAtlantic States. The law mandates that states can use digital methods for odometer readings and notices; however, the processes must set forth security measures to ensure accurate authentication. If implemented properly and with foresight, enacting a new law has the potential to not only allow for completely paperless odometer readings, but a completely paperless process when it comes to vehicle documentation including sales, registration, and titling. Again, the MidAtlantic States have yet to act on their new found authority. 3 NJ LEGISLATION ANTICIPATED FOR NJ MVC ALLEGED FRAUD AND MISCONDUCT By Anthony Bush, Esq. and Grace Strom Power, Esq., Eckert Seamans Cherin & Mellott In December 2015, the New Jersey State Commission of Investigation (“SCI”) issued a scathing report with serious accusations against New Jersey Motor Vehicle Commission (“MVC”) officials: “Gaming the System | Abuse and Influence Peddling in New Jersey’s Used-Car Industry.” The SCI alleged some officials have enabled used-car auto malls or “multi-dealer locations” to circumvent regulations and enforcement, allegedly resulting in fraud, unpaid taxes and “suspicious” financial transactions. Importantly, the report contains many recommendations that would significantly change oversight of the entire industry not just for dealers at multi-dealer locations. We now anticipate that the Legislature will take up many of these reforms, with legislation expected to be introduced within weeks; however, we do not yet have any information on the specifics of the bill or bills. As reported previously, the SCI recommended reforms included: (1) removing licensing and oversight authority from the MVC’s jurisdiction and giving it to the NJ Department of Law and Public Safety, Office of the Attorney General, Division of Consumer Affairs; (2) creating a wholesale-only license and exempting wholesale dealers from many of the requirements that strictly pertain to retail transactions (the MVC has discussed creation of such a license category for years); (3) requiring more financial disclosures as a condition of licensure; (4) expanding the basis for denying licenses for certain crimes; (5) adoption of a used car dealer bill of rights; (6) an end to “AS IS” sales; (7) a cooling off period with financial penalties for the purchase of used cars for less than $40,000.00; (8) strengthening of NJ’s lobbying disclosure requirements; (9) requiring licensees be in state residents. The scope of the expected legislation is not limited or bound by the SCI’s proposals. As we have previously noted, dealers should expect that for now the MVC will vigilantly enforce existing regulations and statutes. This is a good time to ensure your business practices are compliant with all regulatory requirements. 3 28 | MARCH <strong>2016</strong> MIDATLANTIC DEALER NEWS
ONLINE AUTO DEALER SUPPLIES & SELLING AIDS FULL LINE OF AUTOMOTIVE RECONDITIONING AND DETAILING PRODUCTS DEALERGOODIES DETAIL SEMINAR Basic: April 26th ∙ Advanced: April 27th Must Sign Up In Advance: Call (800) 366-2141 See Your Route Salesman or Visit www.dealergoodies.com For Details CUSTOM DEALER IDENTIFICATION PRODUCTS 125 low cost, high impact, one color process Auto Plate Inserts. Starting as low as $177.00 500 Custom License Plate Frames $400.00. Additional styles and materials available. Whether you prefer pre-mades or die-cut Dealer-Cals, we have them starting at $105.00 & $341.00 (Additional quantities and colors available for an additional cost.) Please visit our website for additional details not mentioned in our ad. ADVERTISING AIDS Quipall 200 AMP Port Charge All and Jump Starter PCJS400 $134.95 3x8 Stock Avenue Banners $70.00 VEHICLE IDENTIFICATION Swooper flag and pole kit $150.00 Replacement Flags $59.00 Versa Key Tags 250 per box $<strong>23</strong>.00 Kleer-Bak Stock Stickers 100 per pack $7.95 Consecu-Tags 125 per box $60.00 Arrow I.D. Tags 2 sizes 1,000 per pack $16.00 – $19.50 PLEASE VISIT OUR WEBSITE TO VIEW OUR HUGE SELECTION OF PRODUCTS! 88 AUCTION ROAD MANHEIM, PA 17545 800-366-2141 WWW.DEALERGOODIES.COM
Page 1 and 2: TWENTY GROUP PARTICIPATION TO GROW
Page 3 and 4: GWC WARRANTY GWC WARRANTY HELPS DEA
Page 5 and 6: ProGuard keeps you moving quickly t
Page 7 and 8: Thousands of the most-popular makes
Page 9 and 10: LARGE COMMERCIAL BUSINESS WE OPERAT
Page 11 and 12: PIADA DINNER EVENT WITH PA STATE SE
Page 13 and 14: from the manufacturer—to spend an
Page 15: SHORT DRIVE GREAT DEALS Manheim New
Page 20 and 21: ROBERT C. KEATON Bob is a Senior As
Page 22 and 23: Alan Mosher is a car guy. His first
Page 24 and 25: AUCTIONDIRECTORY PENNSYLVANIA ABC -
Page 26 and 27: LEGAL CORNER Tom (thudson@hudco.com
Page 30: KONTOS KOMMENTARY CURRENT USED VEHI

March 2016 FINAl Mag MAR16_MidAtlanticDealerNews 2 23 2016

Create successful ePaper yourself

Delete template?

Save as template?