in the steering system at low speeds. The manufacturer repaired or replaced parts on the car eight times for this problem over six months even though it could not replicate the problem. The lessee sued the manufacturer for breach of express and implied warranties. The manufacturer moved for summary judgment, arguing that there was no defect that substantially impaired the vehicle and that it had repaired the car each time the lessee brought it in. The lessee argued that the repair history established an issue of disputed material fact concerning the defect. The trial court granted the manufacturer summary judgment. On appeal, the lessee argued that summary judgment was improperly granted because discovery was not complete and because there were issues of material disputed fact concerning the defect. The Superior Court of New Jersey, Appellate Division, affirmed. The appellate court determined that there was no issue of material disputed fact because the lessee did not demonstrate substantial impairment. In fact, there was no evidence of a defect because the car was driven over 23,000 miles in the first year and the problem could not be replicated. See Selman v. Jaguar Land Rover North America, LLC, 2013 N.J. Super. Unpub. LEXIS 881 (N.J. Super. App. Div. April 22, 2013).
$49.95
The Answer Book for Finance and Insurance Professionals
360 things to know about auto dealer finance
“This new book may be called a ‘guide’ but it’s more likely a ‘bible’ for every dealer, F & I manager, and trainer in the country. A timely and invaluable reference that covers all legal and regulatory touch-points in a dealership’s purchase transaction by a consumer. AFIP’s endorsement confirms that the stable of authors know the ‘rights’ to follow and the ‘wrongs’ to avoid. It is on the recommended list by F&I Magazine.”
Car dealers, boat dealers, RV dealers–all businesses that sell personal property on credit–are subject to a bewildering thicket of federal and state laws and regulations. Responsibility for compliance usually falls on the general manager of the dealership or the manager of the “finance and insurance”, or “F&I” department. Sometimes the person responsible for sales and credit compliance has received some training dealing with these legal issues. But sometimes, the person shoved into the deep end of the pool as the compliance officer doesn’t have a clue what he or she is responsible for, and doesn’t know where to start.
Ed Bobit, Publisher Bobit Business Media
“Ignorance of the law is no excuse. And given the penalties for violating even one of the many legal obligations facing today’s auto dealer, including stiff fines and even imprisonment, a dealer must be well informed to make sound business decisions. There has never been a reference book for auto dealers and their professional advisors ... until now. This book is extremely well written and easy to read. It should be on the desk of every car dealer. It’s on mine.” Adam Goldfein, Host of the Nationally Syndicated Talk Show AutoScoop—The Inside to Car Buying
“If a dealer had to decide between renting an inflatable gorilla for his dealership’s rooftop or purchasing this book for every single sales manager and office manager in the dealership, I hope the dealer would make the business decision that could save him or her thousands of dollars in unnecessary legal fees.... Put the gorilla on hold and insist that every manager read this book and keep it on their desks. I’m making it required reading for every Northwood University Automotive Marketing major.”
Joseph J. Lescota, Chairman Automotive Marketing Department Northwood University
“The F&I Legal Desk Book is the official course text for the AFIP Certification Program. Hudson Cook, LLP, is now the course authority for the applicable state and federal regulations. I can count on one hand the law firms in the United States who could have met our curriculum requirements. The F&I Legal Desk Book will dramatically reduce the time required for candidates to prepare for the 200-question final exam. Hudson Cook, LLP, has made a major contribution to AFIP’s efforts to raise the bar for regulatory compliance and ethical conduct within the F&I trade.”
David N. Robertson Executive Director Association of Finance and Insurance Professionals
“A unique exploration of the Do’s and Don’ts for dealers without the legal maze.”
Charles F. Arrambide Assistant Vice-President Universal Underwriters Group
F&I Legal Desk Book
Michael A. Benoit is a partner with Hudson Cook, LLP and the author of “A Dealer’s Guide to Red Flags Compliance,” a comprehensive resource tool to help auto dealers create and maintain their internal Identity Theft Prevention Programs. His practice focuses on the practical application of a wide range of consumer financial services and dealer laws and regulations to the operational realities of auto dealers, finance companies, technology providers and financial services vendors. Mr. Benoit is a member of the DealerTrack Compliance Council, the National Association of Dealer Counsel, and is a regular speaker at industry events, including the NADA Annual Conference, National Vehicle Leasing Association Annual Conference, and numerous other national programs and private client-funded engagements. He is frequent contributor to a number of trade publications and journals, including Auto Finance News and F&I Management and Technology magazine, and was the principal author of the NADA’s Management Guide to Information Safeguarding. Mr. Benoit can be reached at mbenoit@hudco.com.
Third Edition
F&I Legal Desk Book
The Answer Book for Finance and Insurance Professionals
Thomas B. Hudson has practiced consumer vehicle sales, finance and leasing law since 1973. Mr. Hudson chairs the law firm of Hudson Cook, LLP. He is President of CounselorLibrary.com, LLC, and is the Founder and Editor-in-Chief of CARLAW®, an Internet service that reports auto finance and lease legal developments. He has served as President of the American College of Consumer Financial Services Lawyers, and Chair of the American Bar Association Consumer Financial Services Committee’s Personal Property Finance Subcommittee. He represents the National Automotive Finance Association, Reynolds & Reynolds, auto finance companies, major banks and independent finance companies and many companies who supply services to the auto finance and lease industry. He is a frequent writer and speaker on topics relating to vehicle finance and leasing. He is also author of the book: CARLAW® ~ A Southern Attorney Delivers Humorous Practical Legal Advice on Car Sales and Financing! Mr. Hudson can be reached at thudson@hudco.com.
F&I Legal Desk Book 3rd Edition
The Answer Book for Finance and Insurance Professionals
Thomas B. Hudson
and the Attorneys of Hudson Cook, LLP
Edited by Michael A. Benoit
CARLAW® F&I Legal Desk Book: 360 Things to Know About Auto Dealer Finance provides a compliance roadmap for “green pea” and seasoned compliance officers alike. Each chapter addresses a topic of crucial interest to dealerships. The topics cover the compliance waterfront, and include: ● The Truth in Lending Act and Regulation Z ● The Consumer Leasing Act and Regulation M ● The Equal Credit Opportunity Act and Regulation B ● The Fair Credit Reporting Act ● The Federal Trade Commission’s Used Car Rule ● Federal Advertising Rules ● The Magnuson-Moss Warranty Act ● Arbitration ● and more . . . Each chapter is authored by lawyers who deal with that chapter’s subject every day and in detail. The authors present their information in an easy-to-follow, Q&A format, with as little “legalese” and as much useful and practical information as possible. The goal each time is to give the reader a solid, basic working knowledge of the topic covered. For years, dealers have needed a source for comprehensive, no-nonsense information on the legal requirements they face. Now they have one that quickly will become their principal resource for credit compliance information: CARLAW ® F&I Legal Desk Book: 360 Things to Know About Auto Dealer Finance.
Thomas B. Hudson
This column does not offer legal advice. You should consult your dealership lawyer with any legal questions. Tom (thudson@ hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLC.
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July 2013 — Independent Dealer — 27