Most dealerships in California utilize a commission compensation structure in order to pay their sales staff. Doing so is generally allowed if the dealership complies with the myriad of laws dealing with this type of arrangement. The problem is that many dealerships run into costly issues when they do not properly calculate the pay due to their sales staff or properly document the relationship between them and their sales staff. […]
A safety inspection for a vehicle that your dealership is going to offer for sale to the public is not just a good idea, it is required by law. A proper safety inspection can reveal potential problems with a vehicle and act as an insurance policy which confirms that a vehicle sold by your dealership was in a safe condition prior to that sale. Cal. […]
When you are thinking of starting a business, you may have questions about protecting yourself and your assets. You may also have questions as to which type of business entity you should form for your business needs. So, what is the best entity for your business and what are the benefits and protections of forming each type? Overall, there are four major categories of business entities used in California businesses […]
On April 2, 2018, the United States Supreme Court issued its opinion in Encino Motorcars, LLC v. Navarro, et al. No. 16-1362 (“Encino”). In Encino, the Court reversed a Ninth Circuit Court of Appeals Decision and ruled that automotive service advisors are exempt employees not entitled to overtime wages per the Fair Labor Standards Act (“FLSA”) 52 Stat. 1060. (Opinion Pg. 1.) The Court ruled that automotive service advisors are […]
So you have sold a vehicle. You have informed the customer that, per the Retail Installment Sales Contract, any and all disputes they may have with either the purchased vehicle or your dealership are subject to arbitration. A dispute arises, you bring the case to our attention, and more likely than not, your case is no longer in the hands of the Superior Court with a more than likely hostile […]
Given the prevalence of vehicle history reports such as CarFax and AutoCheck, and consumers’ demand for the same when they purchase used vehicles, an issue has arisen regarding a dealership’s obligation to report a mileage discrepancy when that discrepancy is solely created by a third-party notation on a vehicle history report. The most common situation usually arises where a dealer purchases a vehicle at auction, where the vehicle is not […]
