Ford store’s backdated contracts weren’t improper, court rules
A Ford store in Riverside, Calif., didn’t violate the state’s Automobile Sales Finance Act when it backdated replacement contracts for finance deals rejected by lenders, the state Supreme Court unanimously ruled.
Store not liable for unauthorized credit pull, but dealers should take heed
What should a dealership do about a customer who comes into the showroom, authorizes a credit check, doesn't buy a vehicle at that time but starts shopping again months later? Consider getting another written authorization before pulling an updated credit report.
Ford to pay $63.8 million to Brazilian state after '99 plant cancelation
Markup checks bring charges
The former general manager of Ford Motor and Fiat Chrysler dealerships in Jasper, Ala., faces prison, a $250,000 fine and $914,000 in restitution if convicted of conspiracy, bank fraud and wire fraud in an alleged scheme to rip off the stores.
Toyota's massive repair job
Dealership group loses suit over Volvo incentive plan
Dealers often complain about incentive programs that favor exclusive dealerships over ones that share space with other brands. But a dealership group that sued over such unequal treatment has had its day in court, and lost.
Mass. Lexus store loses bid to toss punitive damages in sexual harassment suit
A former dealership finance manager who was fired after complaining about repeated sexual harassment by the store’s finance director is entitled to both punitive and compensatory damages, the highest court in Massachusetts has ruled.
Dealership challenge foiled by letter of the law
When Rick Case Maserati applied to open a new point in Davie, Fla., nearby competitor Maserati of Fort Lauderdale wasn't pleased. So it filed a protest with the Florida Department of Highway Safety and Motor Vehicles. Now, after multiple legal battles, the Fort Lauderdale store has given up its fight.
Plea deal promises inside look at VW plot
The federal indictment of a Volkswagen engineer - and his agreement to cooperate with prosecutors under a plea deal - could finally unravel the mystery of how VW managed to fool the world about its “clean diesel” engines for at least seven years.
Court paves way for Indiana store to move
Indiana dealership Ed Martin Toyota successfully fought off a prolonged bid by three rival stores to block its relocation. Now it's prepping for fast construction of a store at its new site in the Indianapolis suburb of Fishers, with plans to open in about a year. The protest went all the way to the Indiana Supreme Court before ending in June.
Saleen under siege
A large Ford dealership in Texas is suing Saleen Automotive, alleging fraud and breach of contract, and another dealership says it's having similar problems getting the customizer to deliver a supercharged Mustang that was promised and paid for long ago.
Texas court upholds retailer's victory in suit against Mercedes
Mercedes-Benz USA remains on the hook to a Harlingen, Texas, dealership for $15.3 million in compensatory damages, plus interest, stemming from its secret assignment of a new point near the area where it knew the store's purchaser was looking to relocate. But an added jury award of $115 million in punitive damages should be slashed to $600,000, the Texas Court of Appeals has ruled.
Altima deal was 'bad bargain,' but Nissan dealer disclosed terms, court rules
While a Nissan dealership in Wallingford, Conn., engaged in the “shamelessly admitted practice” of inflating the sales price of a new Altima to offset a discount it gave for a trade-in, the practice doesn't violate the Truth in Lending Act, a federal judge in New Haven ruled last month in tossing a buyer's lawsuit against the dealership.
Why judge tossed Darvish suit out
Judge Robert Greenberg, of the circuit court for Montgomery County, Md., ruled Darvish’s case lacked evidence to support her claims that her father made and then reneged on verbal promises that she would inherit a third of his business. She also had charged that her half-brothers, who now run the company, shut her out.
DARCARS: A succession plan gone awry
Many family-owned dealerships have opaque succession plans. In DARCARS' case, the issue, which had simmered unresolved for years, eventually led to a lawsuit filed by Tamara Darvish against DARCARS, now run by her half brothers, and her father. Last week, a judge threw out that lawsuit. Here's the story behind the suit and the judge's decision.
Essentially, store investor was a dealer, judge says
When does a prospective dealer meet the legal definition of “dealer” and thus become entitled to protection from manufacturers under federal and Arizona law? There's no precise formula to answer that question, a federal judge in Phoenix said.
Dealer wins court battle against GM
N.Y. Chevy, FCA dealer, guilty of fraud, faces prison
The CEO and part owner of Chevrolet and FCA stores in upstate New York faces the possibility of prison and a fine when he is sentenced July 19 for conspiring to defraud a lender by submitting false information about buyers’ incomes and down payments.
Volkswagen code words trip up diesel investigators
What's made it so difficult to find evidence to hold individual Volkswagen employees accountable for the company's diesel-emissions cheating scandal ? According to Bloomberg, one reason is the obscure company code words that investigators are encountering as they work through data secured from more than 1,500 laptops.
Dealer's computer fraud suit against ex-staffers OK'd
Court OKs dealer's suit charging ex-staffers with computer fraud
A U.S. magistrate has given a Colorado dealer the green light to pursue a lawsuit accusing his former F&I manager and general manager of unauthorized access to his store's computer systems and of stealing trade secrets.