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COVID-19 INDUSTRY GUIDANCE: Automobile Dealerships and Rentals

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 […]

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Cal. Civ. Code § 1459.5. Ruled Unconstitutional

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 […]

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Online Vehicle Sales and Off-Site Delivery

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 […]

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Heavy Duty Vehicle Registration Compliance

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 […]

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New Bill Signed Into Law Could Possibly Affect All Finance Companies

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”].)  […]

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Repair Work: A Word of Caution

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 […]