| Keep Your Hat On! |
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| Written by Emily Beck |
| Tuesday, 08 September 2009 14:27 |
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Sometimes I like to pretend that I’m not a lawyer. After all, the endless barrage of lawyer jokes can start to wear a gal down. But, for some reason, folks can always seem to sniff me out and peg me as an attorney. (Yes, I know. It’s embarrassing.) I bet I could be sitting in a bar in Djibouti and someone would mosey up and drown me with their personal legal issues. I guess my lawyer hat is just glued to my head.
I think it is probably similar in the car business. After all, if you’re a car dealer, you really can’t just take off your dealer hat whenever you want to. Regardless of where you are or what you’re doing, there will be a bunch of rules that you’ll need to follow. In other words, your responsibilities will follow you all the way to that mega parking lot across town.
So, let me ask you this. When you’re away from your dealership doing one of those tent sales, are you taking steps to ensure that you’re protecting customers’ personal information in compliance with your written safeguard policy and the federal Safeguard Rule? Or, are you stacking completed deals in a box somewhere between the hamburger buns and balloon strings? Are you taking the steps to verify customers’ identities in compliance with your written Red Flag Rule policy? Or, does the face paint make all of that just too inconvenient? Are you adhering to your dealership’s written test drive policy? Or, do you have a bunch of keys piled in a bowl next to the free M&Ms?
Now, I’m joking a bit, but I think you get my point. As a dealership, the same obligations that apply to you under the halogen lights of your showroom will also apply in the Piggly Wiggly parking lot. So, while you may feel footloose and fancy free in the great outdoors, you can’t forget to keep the fundamentals of compliance in mind. But, there’s more. You’ll also need to bring yourself up to speed on other laws that will come into play simply because you’ve wandered from your home base.
For starters, you’ll need to familiarize yourself with the nuances of the off-site sales laws of the states and cities or towns where you do business. Some state laws or local ordinances require dealers to go through a whole song and dance before holding sales or displaying cars away from their normal places of business. Will you have to get a permit? Will you have to invite your competitors to the party? Better find out before you nail those tent stakes down.
Your state consumer credit rules may also impose additional requirements when you leave the confines of your brick and mortar store. For example, some state laws may require a “cooling off” period when sales occur at an off-premise spot. These same state statutes often impose additional disclosure or foreign language requirements.
So, I’ve got your attention, and you’ve put your hotdogs on ice. But, before you pack up for the season, there’s help out there and lots of free resources for you. Check out your local DMV or Department of Revenue website. You’ll be surprised how many of them contain manuals and forms for off-site sales. If you strike out there, check with your state dealer association. Of course, it’s always a good idea to check with your friendly lawyer (you know—the one with the lawyer hat).
Emily Marlow Beck is a lawyer in the Maryland office of Hudson Cook, LLP. Prior to starting her legal career, she spent years working in a family-owned dealership. Emily can be reached at 410-865-5438 or by email at
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. For information, call 410-865-5411 or visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2009, all rights reserved. Single print publication rights only, to Dealer Marketing Magazine. HC# 4834-6957-7988 (08/09).
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