auction access with car dealer flooring requires car dealer insurance

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COMMERCIAL INSURANCE SERVICES

General Liability – Commercial Property – Garage Liability – Commercial Auto – Umbrella & Excess

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Jon L. von Arx,
President of J.L. von Arx & Associates Insurance Services

CA Lic. # 0702245

 

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car dealer bond may be exposed to attorney fee claims

in recent discussions with larry, executive director of IADAC

we discussed the need for enhanced car dealer education

for existing licensed used car dealers

in that regard here is an article written by a prominent IADAC car dealer attorney

Lawrence Miles

CAR DEALER BONDS MAY BE EXPOSED TO ATTORNEY FEE CLAIMS

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A recent Court of Appeal case could make it more difficult both for California auto dealers to obtain their dealer bonds, as well as collect on the bonds against other fraudulent dealers.

In Pierce v. Western Surety Co., 2012 Cal. App. LEXIS 734 (2012), the 5th District Court of Appeal held last month that a consumer could recover attorney fees on a dealer bond if the consumer could have recovered such fees in a direct action against the dealer under the Consumer Legal Remedies Act (“CLRA”).

The bond company in Pierce argued that the surety law did not authorize the payment of attorney fees, but the appeals court rejected that argument.  The Court found that consumers were entitled to have their claim satisfied under the CLRA, which includes attorney fees.

The parties to a bond dispute often agree on how to distribute the $50,000 bond.  The bond company, consumers, and DMV all have a preference in bond disputes over the claims of auto auctions, dealers, and other parties.  With the addition of consumer attorney fee claims, consumer attorneys will have little interest in trying to resolve the bond disputes, leaving licensees such as auctions and used car dealers left with less opportunity for recovery against a fraudulent dealer.  More bond cases may go to trial, as the ability of parties to stipulate to a settlement of the bond litigation becomes more problematic.

Finally the cost of obtaining a bond could rise as bond company losses rise with the obligation to pay such attorney fees.  Some bond companies may elect to get out of the business altogether in California.

 

About Lawrence Miles
Mr. Miles is founding attorney with The Miles Law Firm, A Professional Corporation. The firm practices civil and business law, including extensive work in the auto and aviation industries. For more information, please email Mr. Miles at larry@milesfirm.com or review the Firm’s website.+++++WE OFFER THE FINEST CAR DEALER EDUCATION IN CALIFORNIADMV CERTIFIED SINCE 1998

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dmv approved car dealer vehicle history providers

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DMV Approved NMVTIS Data Providers

To search NMVTIS to find important vehicle condition and history information, please select an approved provider listed below.

Auto Data Direct, Inc. CARCO Group, Inc. DMVdesk® INSTAVIN RidgDig VinAudit Vin-Smart

Please note that when you select one of these providers, you are leaving the U.S. Department of Justice web site and accessing the web site of an approved NMVTIS Vehicle History Report vendor that has agreed to provide NMVTIS reports to the public consistent with federal legal requirements.

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licensed california autobroker
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california dmv autobroker handbook information

https://www.dmv.ca.gov/pubs/reg_hdbk_pdf/toc.htm

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car dealer blog

http://www.autogodfather.com

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WE MAKE IT SIMPLE FOR YOU

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car dealer nurse

tesla dealership battle moves to ohio

By  Dan Gearino

A trade group for Ohio car dealers is asking a Franklin County court to rescind Tesla Motors’ license to sell new cars, citing what they say are violations of Ohio law.

The plaintiffs in the case also include several central Ohio dealer groups, such as Midwestern Auto Group of Dublin, Ricart Automotive of Groveport and several of the Germain family dealerships.

“If a license is not granted with proper authority, then that license should be rescinded,” said Sara Bruce, vice president of legal affairs for the Ohio Automobile Dealers Association.

The defendants are the Ohio Department of Public Safety, the Ohio Bureau of Motor Vehicles and Tesla.

In the suit, which was filed in Franklin County Common Pleas Court, the dealers say that the state agencies improperly approved Tesla’s dealer license earlier this year because the company did not provide a copy of its contract with the manufacturer of the vehicles to be sold.

In this case, the manufacturer and the retailer are the same company, but the dealers say that the law still calls for proper documentation.

Even if Tesla had provided a contract, it would not have been valid because the law requires such an agreement to be between “two separate contracting parties,” Bruce said.

Tesla did not immediately reply to a request for comment.

Earlier this month, Tesla opened a store at Easton, the automaker’s first retail outlet in Ohio.

Also this month, the auto dealers association made an unsuccessful attempt to get the Ohio General Assembly to outlaw Tesla’s business model.

The lawsuit is the next step in the dealers’ attempt to stop Tesla from gaining a foothold in the state.

Unlike most auto brands, Tesla sells its all-electric cars directly to consumers through company-owned stores.

This is different from the way established auto brands sell their products. Companies such as Ford, General Motors and Honda sell through a network of independently owned dealers.

Established dealers have raised concerns that Tesla’s model is opening the door for other automakers to open company-owned stores, which they say would undermine the concept of an independent dealer network.

The dealers say they are trying to preserve a system that employs 50,000 Ohioans, while Tesla says the dealers are monopolists who are wary of real competition.

Tesla has faced similar legislative and legal battles in other states.

dgearino@dispatch.com

sacramento dmv certified car dealer license training

dmv requires a training class to take your car dealer license examination

dmv requires you pass a 40 question exam to submit your car dealer license application

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good luck with getting your car dealer license

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#realcardealerschool will get you licensed

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Why Not Get Your Very Own Car Dealer’s License?

1.  Car Dealer Auction Access

2.  Wholesale Acquisition from Franchise new car Dealers

3.  Sell as many cars as you like

4.  Personal Use of car dealer license plates

5.  Efficient Acquisition of vehicles

6.  Expenses become deductible as a business owner

7.  Network existing contacts into additional car sales

8.  Broker new Cars and make a finders fee

9.  Wholesale tax free parts and repairs

10.  Incredible savings even if you are a part time home based wholesale dealer

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#realcardealerschool wholesale auto auction list

car dealer compliance tips from the #realcardealerschool

we recently met with larry, executive director of IADAC

and we discussed the need for enhanced car dealer education

in that regard

we offer specific tips for continued compliance

for existing california car dealers

wholesale auto auctions list for california

every car dealer must understand the importance of vehicle acquisition

profit is made when a vehicle is acquired

not when it is sold

focusing on acquisition

and establishing good auction contacts

is the secret to this complicated business

IADAC wholesale auto auction list

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dmv certified car dealer education since 1998

the only #realcardealer certified to teach

800-901-5950

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we now offer car dealer licensing school in spanish

we are the leaders in

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in response to high demand

we are now offering a spanish language car dealer class

in modesto at crows landing for those who prefer a spanish teacher

we offer a downloadable spanish handbook after the class

Click here for Crows Landing class dates

you may call the instructor direct

Jorge Elizalde

El Tio Auto Sales

209-538-1789

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register online for dmv updates

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Vehicle Industry News Table of Contents

You can now receive e–mail alerts from the DMV that notify you immediately when a publication or update, which may impact your business or customers, is placed on the department’s Internet website. To take advantage of this free e–mail alert service, please subscribe at http://www.emailalert.dmv.ca.gov/subscriptions.asp.

shouldn't car dealer school be taught by real car dealers ???

we are the

#realcardealerschool

established in April 1998

by real licensed retail car dealers

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DLR license 35862

most of are competitors are unlicensed

or simply licensed as wholesale only dealers

DMV list of car dealer school providers as of 2014

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come to the only actual DMV certified #realcardealerschool

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DMV car dealer school list of providers