Year: 2017

ML Jim Sifers
Auto Defense, James S. Sifers, Used-Car Dealerships

The California Supreme Court Addressed the Viability of Class Action Waivers

The California Supreme Court has again taken up the issue of an individual consumer’s ability to obtain remedies for similarly situated third parties. This change in the law may have a significant impact in the auto sales/auto finance industry. The California Supreme Court recently ruled in McGill v. Citibank, N.A. (2017) 2 Cal.5th 945, that companies cannot require individuals to waive their right to seek remedies for the public benefit, […]

James S. Sifers
Auto Defense, Used-Car Dealerships

Impact of a Customer’s Bankruptcy after a Vehicle is Repossessed with an Unpaid Balance Due and Negative Equity

Many of our clients have inquired as to how a licensed vehicle dealer or finance company in California should act with respect to a customer who has a financed vehicle purchase and no equity in the vehicle after the customer defaults on the purchase contract and then files for bankruptcy. For specific transactions that involve a bankruptcy by a customer with a balance due to a lender, legal advice should […]

ML Jim Sifers
Auto Defense, James S. Sifers, Used-Car Dealerships

Pitfalls in Advertisement

Advertising online is one of a dealer’s most valuable tools. It allows them to connect with their customers instantly. In an era where comparison-shopping can be done on a widespread scale over a specific location, dealers are taking every advantage available to them to ensure that their advertisements are noticed by a potential buyer. It is certainly no secret that consumers, by and large, are price driven in their search […]

ML Jim Sifers
Auto Defense, James S. Sifers, Used-Car Dealerships

Pitfalls in Non-English Deals

In California, it is not unusual for dealerships to find customers who speak little or no English. According to the 2010 Census, for California residents age 5 and older, 42.98% spoke a language other than English as their primary language at home. (“Qualifying Urban Areas for the 2010 Census” Federal Register.) In 1976, the California Legislature enacted Cal. Civ. Code § 1632, which was done in light of “the state’s […]

ML Jim Sifers
Auto Defense, James S. Sifers, Used-Car Dealerships

Pitfalls in Warranty

Whether your dealership provides a warranty for the vehicles it sells may be a decision based on business practices or it may be required by law. When a warranty is provided by a dealership oftentimes that warranty can expose the dealership to consumer claims should the purchaser claim issues with the vehicle. Before you decide whether your dealership should offer warranties on the vehicles you sell, you should first determine […]

ML Jim Sifers
Auto Defense, James S. Sifers, Used-Car Dealerships

Pitfalls in Collecting Licensing Fees

A new tactic by consumer attorneys, which has gained momentum over the past few years, is filing suit against dealerships who do not refund estimated vehicle license fees where a refund is due. Many dealers tend to overlook the relatively small amounts due to purchasers where an estimate of vehicle license fees is collected, the amount paid is less than what is collected, and where a refund is due to […]