On July 12, 2019, Governor Gavin Newsom signed into law Cal. Civ. Code § 1459.5. The purpose of enacting Section 1459.5 was to legislatively overturn Lafferty v. Wells Fargo Bank, N.A. (2018) 25 Cal.App.5th 398 (“Lafferty”), which held that attorneys’ fees were not recoverable against a holder by a consumer for claims brought pursuant to the Federal Trade Commission’s (“FTC”) Holder Rule. (16 CFR § 433.2 [“FTC Holder Rule”].) Section 1459.5 […]
Due to the unusual circumstances surrounding the COVID-19 Coronavirus pandemic (“COVID-19”), many industries are faced with unprecedented challenges – including the automobile sales industry. Fortunately, the California Department of Motor Vehicles (“DMV”) has recognized some of those challenges and provided a solution. Previously, an automobile dealer was required to conduct vehicle sales at the dealership’s licensed location absent certain exceptions. (Cal. Veh. Code§ 11714(b).) This made it difficult for dealers to conduct […]
In support of California’s clean-air goals, the California Air Resources Board (“CARBâ€) has announced a new policy that blocks registration of certain vehicles. Dealers must know which vehicles are subject to registration denial in order to avoid adding them to their inventory. As of January 1, 2020, the DMV will deny vehicle registration renewals or transfers for Heavy-Duty diesel powered vehicles that do not meet CARB’s health-based requirements. A vehicle […]
On July 12, 2019, Governor Gavin Newsome signed a bill which enacted Cal. Civ. Code § 1459.5. The purpose of enacting Section 1459.5 was to legislatively overturn Lafferty v. Wells Fargo Bank, N.A. (2018) 25 Cal.App.5th 398 (“Lafferty”), which held that attorneys’ fees were not recoverable against a holder by a consumer for claims brought pursuant to the Federal Trade Commission’s (“FTC”) Holder Rule. (16 CFR § 433.2 [“FTC Holder Rule”].) […]
As has become a truth in California with respect to auto dealers, no good deed goes unpunished. Many consumer attorneys have taken issue with dealers providing goodwill and/or warranty work for recently sold vehicles where a written estimate for the work to be provided and/or an invoice for completed work was not provided. This often happens in situations where a dealer’s in-house mechanic does work for a customer shortly after […]
In order to operate as a dealer in California, the California Department of Motor Vehicles (“DMV”) requires dealers to provide a $50,000 dealer bond to protect purchasers, sellers, financing agencies, and governmental agencies against monetary loss resulting from the dealer committing fraud and/or making fraudulent misrepresentations. (Cal. Veh. Code § 11710.) In response to this requirement, there are a number of third-party surety companies that will provide this bond in […]
