Lemon Laws in California: What Car Dealerships Need to Know Owning or operating a car dealership in California presents a unique set of challenges and responsibilities. Among these, navigating the intricate web of “Lemon Laws” is of paramount importance. Understanding these laws is not just a legal necessity but is also crucial for maintaining your dealership’s reputation and ensuring customer satisfaction. In this guide, we’ll walk you through the essential […]
Where a State Statute Provides for Attorney’s Fees, Does the FTC Holder Rule Limit the Amount? The first critical issue lies with the second sentence of the Notice required under the Holder Rule. The Notice provides, “any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained pursuant hereto or with the proceeds hereof. […]
On January 1, 2023, new rules will go into effect concerning guaranteed asset protection waivers (“GAP”) in California.
The ever-changing position with respect to holder liability continues to evolve in California.
On January 29, 2021, the California Court of Appeal for the Second Appellate District, in Pulliam v. HNL Automotive Inc.(2021) Cal.App.5th [2021 Cal.App. LEXIS 81], held that the Holder Rule (16 C.F.R. § 433.2) does not limit the attorneys’ fees that a plaintiff may recover from a creditor-assignee. In doing so, the court rejected the holdings of the Third and First Appellate Districts in Lafferty v. Wells Fargo Bank, N.A. […]
COVID-19 INDUSTRY GUIDANCE: Automobile Dealerships and Rentals With COVID-19 cases on the rise, Governor Newsom has recently ordered new California closures for non-essential businesses. The State Public Health Officer has noted that “[w]orkers critical to the manufacturing, distribution, sales, rental, leasing, repair, and maintenance of vehicles and other transportation equipment (including electric vehicle charging stations) and the supply chains that enable these operations, subject to adhering public health guidance issued […]
