Articles, news & legal alerts

Read the latest news from Scali Rasmussen, including legal alerts and event listings.

Enforcing arbitration agreements

In California, unconscionability is still the battleground, but for how long?

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Dealers are under assault by consumers and employees who, in a still-recovering economy, too often use the court system as a bonanza to address their own economic troubles, unrelated to anything the dealer did or failed to do.

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Today, the FTC announced that it has issued final amendments to the Alternative Fules Rule, consolidating the labels required on alternative fuel vehicles (AFVs) with those required by the U.S. Environmental Protection Agency (EPA), eliminating the need for two different labels and reducing the burden on manufacturers and used car dealers of complying with the rule.

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As of January 1, 2013, trucks and 53-foot trailers operating in California are subject to more stringent requirements under regulations being implemented by the California Air Resources Board (CARB).

CFPB targets indirect auto lending practices

Is there a real problem or is the CFPB just flexing its muscle?

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Last week, the Consumer Financial Protection Bureau issued a bulletin on what it perceives as the "potential for discriminatory pricing" caused by the policies of some indirect auto lenders that allow auto dealers to mark-up lender-established buy rates and that compensate dealers for those markups in the form of reserve.

CARB's truck and bus regulations

Are you in compliance?

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This should be old news to many of you. But it has recently come to my attention that it is not old news to everyone, which is why I'm posting it now.

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On July 6, 2012, the President signed the Moving Ahead for Progress in the 21st Century Act (MAP-21). This was the first multi-year transportation authorization since 2005 and funds surface transportation programs at over $105 billion for fiscal years 2013 and 2014. According to the Department of Transportation, it transforms the framework for investments to guide the growth and development of the country’s vital transportation infrastructure.

I know where you went last Summer

Privacy implications of vehicle-tracking technology

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I'm sure everyone has heard about the tussle (that's an understatement) between Elon Musk's Tesla Motors and the New York Times concerning that paper's negative review of the Tesla Model S. When Musk countered the review in his blog by citing information that the car gathered about where and how the Times reporter drove the Model S, as recorded by the car's "black box," he sparked a flaming debate about the information that our cars record. And, whether he meant to or not, he put the privacy implications of such recording technology at the forefront of public concern.

Sweeping California franchise reform on the horizon

better warranty rates and more rights

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On January 31, 2013, Senator Padilla introduced a bill in the California legislature aimed at curbing factory incentive and warranty charge-back abuse, providing better rates for warranty work, clarifying factory audit rights and dealer protest rights, and allowing freedom of choice in vendors when conducting facilities upgrades.

Internet Marketing Manager

A necessary position in any dealership

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I just returned from the NADA conference in Orlando. Amidst the talk about new federal regulations on the horizon, avoiding fraud and embezzlement at dealerships and, of course, the excitement over the new NADA president, Peter Welch, there was a lot of emphasis on internet marketing.

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On Friday, February 1, 2013, as many have reported, the FTC issued a staff report with recommendations for improving mobile privacy practices. The recommendations were issued for mobile app platforms (like Apple, Google, Microsoft and Amazon), app developers, advertising networks and other third party analytics companies, and app trade associations.

"Survey Says!"

Why are dealers letting manufacturers frame the CSI issue?

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CSI is the industry benchmark for customer service. Many new tech companies talk about their products as enhancing CSI scores, but I am not aware of anybody whose product is addressing the fundamental analytical flaws in the factory's methods of gathering CSI data.

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Since the FTC just finished an investigation and issued warnings to 11 unsuspecting used car dealers in Arkansas about their Used Car Rule violations, perhaps this is a good time for a refresher on the Used Car Rule.

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As mobile technology and internet marketing take hold in dealerships, dealers and providers are smart to mind their vendor contracts and disclosures. Incorporating social media and new technologies into dealerships can help them become more profitable and allow them to connect with more car buyers in better ways as long as dealers and providers use common sense.

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