Digital Dealer - October 2017 - 11

THE REQUIRED DISCLOSURE . . . WILL HAVE THE
EFFECT OF CAUSING CUSTOMERS TO AVOID THE
NON-GM PRODUCT WHICH, IN MANY CASES, IS A
BETTER PRODUCT FOR BOTH THE CUSTOMER AND
THE DEALERSHIP."
warranty or denying coverage under a warranty
simply because nonOEM parts are installed
or used on the vehicle.
The only exception to
this prohibition under the
Act is if the non-OEM
part causes damage to a
warranted part on the vehicle. Instead of a broad
reservation of rights to
invalidate a customer's
vehicle warranty, any
disclosure sought by GM
should be limited to the
language utilized in the

of these proposed penalties is questionable in
that, as provided above,
the Dealer Agreement
only requires a simple disclosure in the purchase
order or bill of sale. If the
dealership is including
the required disclosure
on those documents then
a penalty for failing to
include a more expanded
disclosure may not have
any legal basis.
As relates to suspension from existing
programs, we are told that

chise laws prohibit any
chargeback of incentives
monies unless the claim
made for those incentive
monies is materially false
or fraudulent or the dealer
failed to reasonably substantiate the claim. Under
the circumstances, there
would appear to be a
strong argument that any

chargeback based upon
these new and expanded
disclosure requirements
would fail under this
requirement.
RICHARD SOX is a lawyer
with the firm of Bass Sox
Mercer PA (formerly known
as Myers & Fuller PA).
EMAIL: rsox@dealerlawyer.
com

...ANY CHARGEBACK
BASED UPON THESE
NEW AND EXPANDED
DISCLOSURE
REQUIREMENTS WOULD
FAIL UNDER THIS
REQUIREMENT."
Magnuson-Moss Warranty Act.
The penalties listed
for failing to provide the
customer disclosure
include a $500 surcharge
per incident, rendering
the dealer ineligible for
GM dealership opportunities, suspension from
various current and future
sales programs, including SFE and EBE and
termination of the Dealer
Agreement. The legality

there is no requirement in
the SFE, EBE or Pinnacle
programs, addressing
disclosure of non-GM
parts or service contracts.
If so, there would be no
basis in the program rules
for a suspension from
those programs. Moreover, to the extent that
any penalty for failing to
provide the required disclosures would be considered a chargeback, most
state motor vehicle franD I G I TA L D E A L E R . C O M

OCTOBER 2017

11


http://rosenfieldandco.com http://rosenfieldandco.com http://www.DIGITALDEALER.COM

Table of Contents for the Digital Edition of Digital Dealer - October 2017

Digital Dealer - October 2017
Contents
What the World Needs Now…
Bringing Next- Generation Family Members Into the Dealership
Nissan Dealers Join Forces Against NNA Policies
Improving Profitability - Building Your War Chest
Managing People & Processes for a Stronger ROI
PETE DORSCH Dorsch Ford Lincoln Kia
Tell Your Story!
SPECIAL SECTION: Digital Dealer 23 Conference & Expo Recap
SPECIAL SECTION: 9 Social Media Lessons I Learned From My PE Teacher
SPECIAL SECTION: Why Dealerships Must Embrace the Concierge Economy
Video: An Essential Part of Your Digital Toolkit
A Scientific Model for Building Customer Trust
The Marketing Tune-Up That Turns Inbound Shoppers Into Customers
Your DMS and Recalls
Displays Won’t Sell Service – If You Won’t!
The Service Reception Process Revealed – Jaw Dropping
Digital Dealer - October 2017 - Digital Dealer - October 2017
Digital Dealer - October 2017 - Cover2
Digital Dealer - October 2017 - Contents
Digital Dealer - October 2017 - 2
Digital Dealer - October 2017 - 3
Digital Dealer - October 2017 - What the World Needs Now…
Digital Dealer - October 2017 - 5
Digital Dealer - October 2017 - 6
Digital Dealer - October 2017 - 7
Digital Dealer - October 2017 - Bringing Next- Generation Family Members Into the Dealership
Digital Dealer - October 2017 - 9
Digital Dealer - October 2017 - Nissan Dealers Join Forces Against NNA Policies
Digital Dealer - October 2017 - 11
Digital Dealer - October 2017 - Improving Profitability - Building Your War Chest
Digital Dealer - October 2017 - 13
Digital Dealer - October 2017 - 14
Digital Dealer - October 2017 - Managing People & Processes for a Stronger ROI
Digital Dealer - October 2017 - 16
Digital Dealer - October 2017 - 17
Digital Dealer - October 2017 - 18
Digital Dealer - October 2017 - 19
Digital Dealer - October 2017 - Tell Your Story!
Digital Dealer - October 2017 - 21
Digital Dealer - October 2017 - 22
Digital Dealer - October 2017 - 23
Digital Dealer - October 2017 - SPECIAL SECTION: Digital Dealer 23 Conference & Expo Recap
Digital Dealer - October 2017 - 25
Digital Dealer - October 2017 - 26
Digital Dealer - October 2017 - 27
Digital Dealer - October 2017 - 28
Digital Dealer - October 2017 - 29
Digital Dealer - October 2017 - SPECIAL SECTION: 9 Social Media Lessons I Learned From My PE Teacher
Digital Dealer - October 2017 - 31
Digital Dealer - October 2017 - 32
Digital Dealer - October 2017 - 33
Digital Dealer - October 2017 - SPECIAL SECTION: Why Dealerships Must Embrace the Concierge Economy
Digital Dealer - October 2017 - 35
Digital Dealer - October 2017 - Video: An Essential Part of Your Digital Toolkit
Digital Dealer - October 2017 - 37
Digital Dealer - October 2017 - A Scientific Model for Building Customer Trust
Digital Dealer - October 2017 - 39
Digital Dealer - October 2017 - The Marketing Tune-Up That Turns Inbound Shoppers Into Customers
Digital Dealer - October 2017 - 41
Digital Dealer - October 2017 - Your DMS and Recalls
Digital Dealer - October 2017 - Displays Won’t Sell Service – If You Won’t!
Digital Dealer - October 2017 - 44
Digital Dealer - October 2017 - 45
Digital Dealer - October 2017 - The Service Reception Process Revealed – Jaw Dropping
Digital Dealer - October 2017 - 47
Digital Dealer - October 2017 - 48
Digital Dealer - October 2017 - Cover3
Digital Dealer - October 2017 - Cover4
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