Stay compliant. Protect your bottom line. We have a combined 95 years of experience helping automobile dealers comply with EPA, IIP and OSHA regulations. Let our experts show you a new approach for managing compliance at your dealership. (562) 704-4000 cellyservices.com Spend less time on compliance issues and more time running your dealership. LET’S TALK! California Business and Professions Code Section 17200, which prohibits unfair competition, among other things, and unlawful and unfair business acts or practices. Both lawsuits also claim that taking reservation deposits is a false advertisement under California Business and Professions Code Section 17500 because of the unlawfulness of the direct-to-consumer sales model. Both CNCDA lawsuits are asking the court to declare that the Volkswagen and Honda direct-to-consumer sales and service model, and taking reservations, are a direct violation of Vehicle Code Section 11713.13 (o)(1). The lawsuits also request that the unlawful behavior of the defendants be permanently prohibited. If the court rules that the activities of the defendants are unlawful, the DMV could charge the defendants who are licensed with license violations and ask that their licenses be revoked, suspended or put on probationary status. The actions of the defendants appear to be clear violations of California law, so stay tuned for further developments. Manning, Leaver, Bruder & Berberich LLP is a Los Angeles law firm that practices throughout California and has been in existence for over 100 years. It has a strong automobile dealer practice covering all areas related to the automobile dealer industry, including dealership buy-sells, real estate transactions, business and consumer litigation, regulatory compliance, dealer association law, new motor vehicle board matters and franchise law. See manningleaver.com for more information and areas of practice. Nothing in this article may be considered as legal advice. Contact legal counsel for legal advice. 18 California New Car Dealer Quarterly
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