On the Automobile Dealer Client

I have been representing automobile dealerships since 1979, when a new dealer retained me based upon the recommendation of a salesman from whom I had just bought a car. Since then, I have worked with single point family-run dealerships, groups that have owned multi-state and multi-franchise dealerships and have counseled dealers in numerous buy/sell transactions. I have organized, structured, and continue to represent national and regional dealer advertising association. On behalf of my automobile dealer clients, I have appeared before the Attorney General, the Department of Motor Vehicles, various Consumer Protection bureaus and arbitration panels, and have litigated in courts ranging from those on the appellate level down to small claims. I have dealt with the very top echelons of manufacturers, advertisers, and dealership service providers. And I have loved every moment. There is no such thing as a "typical" automobile dealer. They have a dizzying array of unique personalities, but each personality is vibrant as well as demanding. Any call from a dealer is likely to bring a new challenge, and one that will draw on my experience and knowledge of the business.

An automobile dealership is a unique and complex business. The dealer/operator may be confronted daily with federal, state, and local regulatory issues, such as consumer protection and Fair Credit Reporting compliance; employment concerns, including labor law requirements and discrimination issues; relationships with vendors, such as data management, CRM, BDM, and Internet web development services and advertising media.  On a longer-term basis, the dealer/operator may face problems with the factory, or which involve leasehold or real estate matters, such as building and zoning violations, or relationships with banks or captive factory finance lenders. There may also be issues between partners, shareholders, or members of an LLC. Ownership of a dealership impacts on estate planning, and occasionally on family and matrimonial concerns. A dealer interested in buying or selling a dealership faces another host of concerns.  In addition to those issues that arise in the purchase and sale of any business, he or she must pay careful attention to the exact wording of the description of the new, used and demonstrator vehicles being sold, what parts are included, or more importantly are excluded, and how executory contracts and commissions are to be handled – to name just a very few.*

*If you would like a copy of my Memorandum outlining the issues that may arise in a buy/sell, please call me or click on the "Contact Me" tab and fill in the form.  I’ll be happy to send one to you.

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