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

Selling your dealership

Organizational and compliance considerations

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Selling a dealership involves many moving parts. A proactive dealer can make itself more marketable and streamline the buy/sell process by preparing before going to market. While preparing to go to market includes getting your financial, employment, inventory, franchise and real estate house in order as well, this article highlights some other important considerations to add to your checklist before going to market.

Sandquist v. Lebo Automotive

Why now is a good time to review your arbitration agreements

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In a 4-3 split decision, Sandquist v. Lebo Automotive, Inc., the California Supreme Court recently held that who decides if a valid arbitration agreement allows class arbitration—an arbitrator or judge—depends on the agreement. This decision is in stark contrast to all recent federal appellate decisions, which require a court to decide whether an agreement allows class arbitration, unless the parties unmistakably agreed otherwise. Sandquist appears to flip that on its head, meaning California arbitration agreements that do not expressly waive class arbitrations may be headed to an arbitrator near you to interpret whether class claims will be permitted in arbitration.

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State and federal law requires auto dealers to protect their customers’ non-public private information and dealers have their own sensitive and confidential information to protect. Much of this information is vulnerable to data security threats. Dealers should, by now, be very familiar with these risks and ways to combat them, but newer risks have surfaced in the last few years that require updates to safeguards policies and other actions and vigilance to effectively combat.

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One of the most promising applications of AV technology in trucking is the use of adaptive cruise control and vehicle-to-vehicle communication systems to allow truck “platooning.” Platooning lets two or more trucks electronically couple so that acceleration and braking by the lead truck can be instantaneously relayed to, and replicated by, following trucks. The result is closer following distances between trucks, which allows for significant increases in fuel efficiency and safety.


What are an employer’s obligations?

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Dealerships usually use uniforms for at least certain job positions to promote a professional image. There are certain rules applicable to uniform requirements that employers should keep in mind.

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We regularly receive inquiries from dealership clients as to whether they can deduct from an employee’s pay the expense caused by the employee’s loss or damage to Company equipment. This question often comes up in relation to electronic devices issued to employees by the dealership, (such as phones and other mobile devices), as well as vehicles and other equipment that employees use to perform their jobs. If the employer believes that the employee was careless or negligent in causing the damage or loss of the equipment, it may be tempting for the employer to simply deduct the expense or loss from the employee’s paycheck. But doing so is risky!!