A suit filed by a former F&I director alleging racial discrimination at a Nissan dealership will not need to be arbitrated, despite a provision the employee signed at a Honda dealership within the same company, a New Jersey state appeals panel has ruled.
The case -- involving a fictitious shell company, falsified documents and a rogue sales manager -- serves as a cautionary tale for dealerships on the need to monitor their employees and fully run down suspicions about potentially problematic transactions.
A former service adviser can proceed with her Equal Pay Act claim against a Florida dealership, a federal judge ruled. He said a trial should determine whether pay differentials between the adviser and her male co-workers "were based on a factor other than sex."
Nissan Motor Acceptance Corp. is entitled to more than $40 million from several New York dealerships, their operating managers and their guarantors after the parties defaulted on floorplan, mortgage and revolving lines of credit loans, and personal guarantees.