2025 ISSUE 1 | GLANCDA.ORG OFFICIAL PUBLICATION OF THE GREATER LOS ANGELES NEW CAR DEALERS ASSOCIATION Getting to Know John Davis New GLANCDA Board Member Future Technicians Explore Automotive Careers at Workforce Development Events 2025 GLANCDA Annual Member Luncheon Recap
BUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICES FERRUZZO & FERRUZZO, LLP | A Limited Liability Partnership, including Professional Corporations FERRUZZO.COM | CALIFORNIA | TEXAS Business Transactions • Buy-Sell Agreements • Entity formation and structure • Shareholder Agreements • Manufacturer approvals and relations Employment Practices • Arbitration agreements • Wage and hour class action lawsuits • Private Attorneys General Act (PAGA) claims • Employee handbooks and compliance Estate Planning • Succession planning for business continuation • Family estate planning (wills and trusts) Tax • Property tax planning, audits and appeals • EDD audits Business Litigation • Consumer Legal Remedies Act lawsuits • Sales and Service Agreements • Disputes before the CA New Motor Vehicle Board • Manufacturer audit disputes • Hearings before the AQMD, RWQC and OSHA Real Estate • Dealership site acquisitions and lease agreements • Lender opinion letters An Automotive Industry Authority For over 40 years, Ferruzzo & Ferruzzo, LLP has been a leading authority in the Automotive Industry. Our team of auto-focused attorneys provide a spectrum of legal services to support every aspect of running and owning your new car and/or truck dealership. Solving Your Challenges, Together
©2025 The Greater Los Angeles New Car Dealers Association (GLANCDA) | The newsLINK Group LLC. All rights reserved. Los Angeles Dealer is published three times per year by The newsLINK Group LLC for GLANCDA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of GLANCDA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Los Angeles Dealer is a collective work, and as such, some articles are submitted by authors who are independent of GLANCDA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. We are GLANCDA. 4 PRESIDENT’S MESSAGE Keeping GLANCDA Strong By Jeanne Brewer, President, GLANCDA 6 GLANCDA Board of Directors and Staff 8 Future Technicians Explore Automotive Careers at Workforce Development Events 11 2025 GLANCDA Annual Member Luncheon Recap 14 Getting to Know Our New GLANCDA Board Member, John Davis 17 MANNING LEAVER LEGAL LANE Navigating the CLRA What Automobile Dealers Need to Know to Protect Their Business By Daniel F. Berberich, Esq., Partner, Manning, Leaver, Bruder & Berberich LLP 21 Driving Change With Grasstops Advocacy GLANCDA BOARD OF DIRECTORS PRESIDENT Jeanne Brewer Acura of Glendale VICE PRESIDENT Evan Ellis Alfa Romeo and Fiat of Glendale SECRETARY/TREASURER Peter Smith Bob Smith Toyota IMMEDIATE PAST PRESIDENT Howard Tenenbaum Porsche Woodland Hills GLANCDA DIRECTORS Howard Tenenbaum Peter Browning John Davis Rinaldi Halim Robb Hernandez Brad Mugg Tim Smith Ian Thomas 700 N. Central Ave., Ste. 320 Glendale, CA 91203 (213) 748-0243 | fax (213) 748-0245 Originally founded in 1907, the Greater Los Angeles New Car Dealers Association provides valuable educational and philanthropic benefits to the Los Angeles Community. The association believes that involvement with local charitable organizations makes a positive difference for everyone involved. 3
PRESIDENT’S MESSAGE Keeping GLANCDA STRONG Jeanne Brewer, President, GLANCDA As we enjoy the hot days of summer, I want to take a moment to thank all of our GLANCDA members for your continued support. Your partnership keeps us strong and allows us to focus on the issues that matter most to our dealerships, our employees and our customers. Workforce development continues to be a big priority. So far this year, we’ve co-hosted several career fairs and job information events where student technicians connected directly with our dealerships to explore career paths. At two of these events, we also held live technician skills competitions — giving students a chance to show off their growing skills. To reward their hard work and help them move closer to employment in our industry, we awarded Snap-on Tool gift cards ranging from $250 to $1,000 per student, helping them invest in the tools they need for success. GLANCDA also continues to serve as your voice at every level of government. Earlier this month, we represented LA County dealers at BizFed Los Angeles Sacramento Days, where state legislators discussed major issues like energy, AI growth, transportation, budget challenges, affordability and pro-business advocacy. In particular, we’ve been actively supporting our state association’s efforts to modernize California’s document processing fee, bringing it in line with today’s real-world costs and consistent with what dealerships in all 49 other states are able to charge. These are the kinds of issues that directly impact your bottom line — and we’re proud to help make sure your concerns are heard. For any rooftops that aren’t yet part of GLANCDA, now is the time to join and have a seat at the table. Membership is just $300 per rooftop, and the deadline to renew or enroll is fast approaching: July 30. Your support strengthens our collective voice and allows us to continue delivering the advocacy, workforce programs and networking opportunities that benefit every new car dealer in Los Angeles County. Thank you again to all of our nearly 300 rooftops for your ongoing commitment. Enjoy a safe and successful summer, and I look forward to seeing many of you at our upcoming events. Warm regards, Jeanne Brewer President, GLANCDA 4
LOS ANGELES / SAN DIEGO / SACRAMENTO / (213) 239-5622 //ScaliRasmussen.com Avoiding litigation when it’s possible. Protecting you when it isn’t. Take advantage of liability reduction provisions of the new PAGA reforms. Our Labor & Employment team is here to help! LEARN MORE
GLANCDA Board of Directors and Staff BOARD OF DIRECTORS JEANNE BREWER President Acura of Glendale EVAN ELLIS Vice President Alfa Romeo and Fiat of Glendale PETER SMITH Secretary-Treasurer Bob Smith Toyota RINALDI HALIM Director Sierra Chrysler Dodge Jeep Ram ROBB HERNANDEZ Director Camino Real Chevrolet BRAD MUGG Director Honda of Downtown Los Angeles TIM SMITH Director Bob Smith BMW Mini IAN THOMAS Director Thomas Acura STAFF BOB SMITH Executive Director Greater Los Angeles New Car Dealers Association KELLY EDWARDS Administrator California Advocates Management Services JOE BERBERICH Legal Counsel Manning, Leaver, Bruder & Berberich HOWARD TENENBAUM Immediate Past President Porsche Woodland Hills PETER BROWNING Director Browning Automotive Group JOHN DAVIS Director Glenn E Thomas Chrysler Dodge Jeep Ram 6
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® John Alexander, john.f.alexander@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
More than 400 student technicians from 20 Southern California high schools participated in two exciting workforce development events co-hosted by the Greater Los Angeles New Car Dealers Association (GLANCDA) and the California New Car Dealers Association Foundation (CNCDA Foundation). The events were held on May 1 at Citrus College and on May 2 at Cerritos College. Each event welcomed over 200 students for a full day of hands-on learning and career exploration. Students attended breakout sessions led by new car dealers and automotive manufacturer representatives, featuring hands-on workstations, new vehicle displays and demonstrations of advanced technology found in today’s vehicles, such as electric powertrains and cutting-edge safety systems. Future Technicians Explore Automotive Careers at Workforce Development Events 8
A highlight of each day was a hands-on skills competition featuring two student representatives from each high school. Participants competed in real-world automotive diagnostics and repair challenges. Thanks to funding from GLANCDA, over $10,000 in Snap-on tools were awarded to student competitors and their schools, helping to support continued technical education. “These events are designed to show students that automotive careers today involve high-tech, exciting work and real opportunities for growth,” said a GLANCDA spokesperson. With more than 18,000 new car dealerships across the U.S. — including over 1,400 in California — the need for skilled technicians is greater than ever. Participating schools included Van Nuys, Simi Valley, Artesia, Gahr, Canyon (Valencia), Mark Keppel, Carson, San Pedro, Montclair, Adelanto, Downey, Hoover, Nogales and Rowland. Building on the success of these spring events, organizers will host another large-scale workforce development experience during the LA Auto Show in November 2025, with over 600 students expected to attend. For students, it was an energizing and informative day, filled with hands-on learning, valuable career insights and a glimpse into the future of the automotive industry. 9
2025 GLANCDA Annual Member Luncheon Recap The 2025 GLANCDA Annual Member Luncheon was held on March 18 at the Universal Sheraton and welcomed over 200 guests, including dealership employees, industry professionals, sponsors and elected officials. The event served as a vibrant networking and educational opportunity for those connected to the Southern California automotive retail community. Highlights of the luncheon included engaging fireside chats with Los Angeles mayoral candidate Rick Caruso and State Senator Roger Niello, who each shared their perspectives on issues impacting the auto industry and the broader business environment in the region. Attendees also benefited from a data-driven presentation by Cox Automotive, which addressed current trends, 11
consumer behaviors and emerging challenges in the marketplace that are shaping the future of automotive retail. A special moment during the program was the presentation of the GLANCDA Lifetime Service Award to Joe Agruso, an esteemed auto tech instructor at Van Nuys High School. The award recognized Agruso’s decades of dedication to automotive education and his lasting contributions to preparing the next generation of skilled technicians. His passion for the industry and commitment to youth development were warmly celebrated by the GLANCDA community. 12
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GETTING TO KNOW OUR NEW GLANCDA BOARD MEMBER JohnDavis John Davis is the President at Glenn E. Thomas Dodge Chrysler Jeep, the oldest established Dodge dealership in California and the 14th oldest established Dodge dealer in the country. As a third-generation dealer, John is proud to carry his family legacy forward and continues to grow the business established over 115 years ago. The Long Beach Auto Company was founded in 1909 by Walter L. Thomas. His son, Glenn E., became very active in the company and eventually purchased the dealership. The name was then changed to the Glenn E. Thomas Company. In 1934, Glenn entered into a franchise agreement with Chrysler, and Glenn E. Thomas Company became a Dodge dealership serving Long Beach. In 1944, a young Navy fighter pilot, Monte Davis, and Glenn crossed paths. Glenn was duck hunting at the Bear River Duck Club in Brigham City, Utah. Monte served as Glenn’s guide while he was home on leave, and a bond between the two men developed. Glenn knew that Monte would be good in business and offered him a job at his car dealership when the war ended. In 1945, Monte and his wife moved to Long Beach. He began his automotive career with Glenn, starting in the parts department and eventually working his way up to general manager of the dealership. Monte became the sole owner of the company in 1968. Monte’s son, Robert (Bob), joined him in the car business in 1973. Chrysler quickly recognized him for selling more vehicles than any other Dodge salesman in the United States in 1976. In 1990, the Glenn E. Thomas Company opened a new multi-million-dollar facility in Signal Hill near the 405 Freeway. At this same time, Bob Davis took over the reins as president, while Monte served as chairman. Bob followed his father in serving the automotive industry and community. Bob is a past President of the Southland Motor Car Dealers Association. He was on the National Sales Council for Dodge and served as the National President for two years. He was nominated as TIME Magazine’s Dealer of the Year in 1998. Today, Monte’s son and grandsons, John and Brad Davis, continue to do business the way they were taught by the patriarch of the family — going above and beyond to provide customers with superior service. Following the golden rule to treat customers as they would want to be treated. We recently had the opportunity to talk with John and learned more about his career path, his experiences in the industry and what serving on the GLANCDA board looks like. The following are excerpts from our conversation. 14
How did you get into the business? Initially, I was considering the car business, but I was also interested in the medical field. So I attended Brigham Young University with the intent of becoming a doctor. I worked at the dealership during the summer months and really enjoyed it. I also worked at a hospital in the Emergency room for a couple of summers, assisting doctors and nurses and translating Spanish for patients who needed assistance. I decided that I liked the car business more than the medical profession, so I quickly changed directions and pursued a new career path. I graduated with a degree in business management, a minor in pre-med and a minor in Spanish, and joined the family business. Have you had any mentors, and what did they teach you? My father and my grandfather are most definitely my two most significant mentors. Early in my career, I shared an office with my grandfather and was blessed to work closely with him. He was really good at working with both customers and employees. He had a gift of getting along well with people, and everyone respected him as an individual and as a businessman. He had an entrepreneurial spirit about him. When he first moved here after World War II, they didn't have many cars to sell, as most manufacturers had been building airplanes and equipment for the war. During that time, a lot of people were moving to California. My grandfather would go to the DMV, where everybody was waiting in line and hand out welcome packets to them. He'd talk to him about the dealership and insurance, which he was selling as well, to drum up business. He was always trying to find creative ways to grow his business. He taught me how to build relations with people, work hard and always find unique ways to promote the dealership. I'm thankful I’ve had the chance to work with my father for a long time. He does a great job of helping our employees know how much he cares about them. He taught me that even though this is a job where we come every day, we might as well come to a place where we feel welcomed, valued and appreciated. That mindset permeates throughout the dealership, and I see its benefits. What pieces of advice would you pass on to someone you are mentoring? 1. Building relationships is crucial. Whether it is the lack of interacting with individuals because of the internet, computers or whatever, relationships are more complex to develop today. But developing relationships with a customer, an employee, a factory representative or someone in politics — as we do with the GLANCDA board — is an essential aspect of having a successful business and a business that you enjoy working at. 2. Don’t take things personally. In life, unfortunately, situations arise where you may not agree with someone, something happens that did not go the way you wanted it to go, or some decision may hurt you individually or financially. Failures happen, and difficulties are unavoidable at times. But don’t take those things personally. 3. Have a good work ethic. I've always been a big proponent of hard work. That's one thing that overcomes any deficiency. No matter how skilled or gifted someone might be, if they don't have the work ethic to put forth, they're not going to be as successful or have as easy a time as somebody who knows how to work hard and do the jobs that someone doesn't want to do. 4. People are important. Have patience and help grow those around you. Being a parent has taught me many things, and I have learned a lot from my children. I learned to be patient and how to teach other people. Taking from experiences like these, you can then put that knowledge into place in the workplace. We receive many incredible benefits in our business because of what we learned from our families, and vice versa. The values we learn as business owners, dealers and managers are transferable to our families, and they should be. If you treat people kindly wherever you are, you will have a healthy business and relationships. The balance part of this equation is essential. When you're spending time with your family or spending time with your business, 100% of your focus must be on who you are with and where you are at. What has been the most rewarding part of your career? Seeing the success of individuals and the success of teams or departments, and sharing with those individuals in their accomplishments has been the most rewarding. We want our people to find ways to grow and increase their skills and knowledge, and to be able to give them all the tools that they need to be more productive in their jobs. We want to promote from within if possible. Many of our managers have been with us for over 30 years now, and that speaks volumes. What are the biggest challenges in the industry? Every dealership is going to have a different relationship with its manufacturer. Our industry in general is going through some transition where the manufacturer is trying to figure out the best relationship with dealers, and dealers are doing the same. That is one of the challenges that we are facing. At the end of the day, we are partners with our manufacturers, and both of us need to figure out ways to sell more vehicles. Additionally, more and more dealership groups are publicly owned. There's a different dynamic with that than there is at a dealer body that is largely family-owned. So there are always challenges there. The other challenge we have is with the EVs, especially in California — trying to find the right balance between EVs and customer demand. We are all trying to navigate that and find what's 15
“We have a fantastic relationship with the LSL team. They keep our interests top of mind and maintain a positive reputation in the industry.” —Craig Whetter, President | David Wilson Automotive Group (relationship since 1983) Adam Odom, CPA, Partner Assurance & Advisory adam.odom@lslcpas.com LSL | CPAs & Advisors | Irvine & Sacramento, CA | The Woodlands, TX | lslcpas.com/automotive | 949.829.8299 Donald Slater, CPA, Principal Consulting & Advisory donald.slater@lslcpas.com David Myers, MST, CPA, Partner Tax & Advisory dave.myers@lslcpas.com best for the consumer, while trying to accomplish the goals our local government officials. How did you get involved in GLANCDA leadership? What are the benefits of membership? We’ve been a GLANCDA member for a long time — ever since I can remember. I felt like I was at a point in my career where getting involved with the association was the right move. I have previously served on the Southland Motor Car Dealers Association board, which is no longer around, and worked with CNCDA on various issues, so I understand the importance of working with our local politicians and finding ways to better our business. What is your favorite way to spend your free time? Do you have any hobbies? I spend most of my free time with my family. I've been married to my beautiful wife, Brooke, for almost 22 years. We have five children, ranging from age 20 to age 9. The oldest is Joshua, age 20; Luke, age 18; Caroline, age 15; Hunter, age 13 and Redge, age 9. You’ll often find me at one of my children’s sporting or dance events. I also try to play basketball a couple of times a week. I played basketball in high school and developed a love for the game then. In addition, I spend a lot of time with my local church congregation helping members of the community through various efforts. Something unique about our family is that we have a lot of chickens, a dog, cats, bees and a large garden. Our yard at home is like a little mini farm in Orange County. We spend a lot of time as a family, gardening together and with the animals. It is important to my wife and me that our children learn the skills that these activities bring. Something unique about me is that I speak fluent Spanish and I really enjoy it. I learned to speak Spanish in Guatemala while on a two-year mission for my church. We have a large Hispanic clientele and many employees who speak Spanish. My brother speaks Spanish as well. Being bilingual has always been a big part of our dealership, and that is important to us. 16
Overview of the CLRA and Available Remedies In 1970, the Legislature enacted the Consumers Legal Remedies Act (CLRA) in an effort to protect consumers from deceptive and unlawful business practices in transactions involving the sale or lease of goods or services. The CLRA prohibits about two dozen unfair or deceptive acts and practices, including falsely claiming a product has benefits or characteristics it does not have, misrepresenting the source or quality of goods or services, selling used goods as new, and making false advertising claims. In order to sue under the CLRA, a person must be a “consumer,” which is defined as one who “seeks or acquires, by purchase or lease, any goods or services for personal, family or household purposes.” Consequently, the CLRA does not apply to individuals who purchase or lease goods or services for business purposes. A plaintiff suing under the CLRA can seek actual damages for any monetary losses, an injunction prohibiting unlawful acts and practices, restitution of property and punitive damages. Consumers who purchase or lease vehicles frequently seek rescission (i.e. cancellation) of the contract which involves returning the vehicle and receiving a refund of their downpayment, monthly payments and a payoff of any outstanding loan on the vehicle. The CLRA allows for an additional award of up to $5,000 to senior citizens or disabled persons where certain conditions can be satisfied, including that they suffered substantial physical, emotional or economic damage. Notably, the CLRA explicitly provides attorneys’ fees to plaintiffs if they prevail on their claim. A plaintiff is considered the prevailing party on a CLRA claim when a “net monetary recovery” is obtained. Notice Requirements and Defenses Under the CLRA The CLRA has a preliminary notice requirement which obligates a consumer seeking damages to send the dealer a CLRA demand letter by certified mail, return receipt requested, at least 30 days MANNING LEAVER LEGAL LANE Navigating the CLRA WHAT AUTOMOBILE DEALERS NEED TO KNOW TO PROTECT THEIR BUSINESS By Daniel F. Berberich, Esq., Partner, Manning, Leaver, Bruder & Berberich LLP 17
Ultimately, determining the best approach to respond to a CLRA demand letter requires a detailed analysis of the specific factual circumstances of each case. before filing a lawsuit, in order to notify the dealer of the alleged violations and request that the issues be rectified. The purpose of the notice requirement is to give the dealer sufficient notice of the alleged violations so that the dealer has a reasonable opportunity to offer appropriate corrective action and to facilitate the settlement of claims out of court before legal proceedings begin. The CLRA demand letter is typically sent by the consumer’s attorney and must be delivered to the place where the transaction occurred or to the dealer’s principal place of business in California. Instead of sending a CLRA demand letter, some plaintiffs’ attorneys rely on a statutory exception and file a lawsuit seeking only injunctive relief and then 30 days later they file an amendment in the lawsuit to seek damages for the CLRA claim. A consumer’s failure to comply with the preliminary notice provision can be fatal to their CLRA claim. In addition, the CLRA contains an affirmative defense which allows the dealer that is sued to avoid damages by proving the alleged violation was not intentional, resulted from a bona fide error, and that a reasonable correction was offered to the consumer within 30 days of receiving the CLRA demand letter. Why Is the CLRA So Popular With Plaintiffs’ Attorneys? The CLRA has gained considerable favor with plaintiffs’ attorneys for two reasons. First of all, proving liability for a CLRA claim is easier than it is for other misrepresentation claims, such as fraud. That is because a fraud claim requires the plaintiff to prove that the false statement was knowingly made by the business. A CLRA claim, however, has a relaxed standard of proof and does not require proof that the business knew the statement was false at the time it was made. Secondly, and perhaps the most significant aspect of the CLRA that has made it attractive for plaintiffs’ attorneys is that it is one of the few laws that allows 18
prevailing plaintiffs to recover an award of attorney’s fees if they win. Conversely, prevailing defendants are not entitled to recover attorney’s fees unless they can satisfy the rigorous burden of proving that the plaintiff’s lawsuit was not brought in good faith. In essence, the CLRA incentivizes plaintiffs’ attorneys to vigorously litigate cases that otherwise appear trivial due to the tremendous upside of recovering substantial attorneys’ fees if they win. Indeed, in cases that go all the way through trial, even though the award of damages to the consumer might be minimal, the attorney’s fees and costs can easily be well into the six figures. From a defense standpoint, it can be risky to litigate a CLRA claim because a defendant who loses will end up paying their own attorney’s fees as well as those of the plaintiff. What Should a Dealer Do After Receiving a CLRA Demand Letter? Dealers that receive a CLRA demand letter should take it seriously because failing to respond in a timely and appropriate manner can lead to a lawsuit against the dealer that might have been avoided by a proper response. Dealers should train employees who receive mail to note the date the CLRA demand letter was received and to ensure that it gets forwarded to defense counsel so that a prompt response can be sent within the 30-day deadline. Upon receiving a CLRA demand letter, a dealer should investigate whether any insurance coverage exists that may cover the claim so that the claim can be tendered to the insurance carrier. Some insurance companies will appoint defense counsel to prepare a response to the CLRA demand letter even though a lawsuit has not yet been filed. Dealers should also preserve all documentation and evidence relating to the transaction in question, including the deal file, any pre-sale photographs of the vehicle, as well as any documentation of communications with the customer such as e-mails or text messages. The letter sent in response to the CLRA demand letter typically indicates whether the dealer disputes the customer’s allegations, whether it is willing to resolve the matter, or whether additional information and documentation is requested to further investigate the customer’s claims. The response letter can include an offer to rectify the alleged violations, such as a monetary settlement offer, which can serve as an affirmative defense later if the customer decides to pursue litigation. The language in the response letter should be carefully crafted to avoid inadvertently admitting to any wrongdoing. It is a good idea to send a response letter even if the dealer decides not to offer a correction because doing so may help prevent a situation such as the customer’s attorney later arguing in the litigation that the dealer did not care enough about the customer’s claim to respond to the letter. Determining the best way to respond to a CLRA letter can be difficult because the CLRA demand letter often provides only sparse details about the customer’s claims. For instance, customers frequently allege that the dealer’s sales representative made a misrepresentation by falsely stating that a vehicle had not been involved in any prior accidents when, in fact, the vehicle did have accident damage that the customer later discovered. In those situations, it can be difficult to evaluate the customer’s claims because by the time the dealer receives the CLRA demand letter, the customer has already driven off with the vehicle, and the dealer no longer has access to it. If litigation ends up going forward, the dealer will have the right to conduct discovery to obtain additional information about the customer’s allegations, including the ability to perform a vehicle inspection. However, engaging in the discovery process prolongs the case and increases the customer’s attorney’s fees and costs, which may increase the amount the customer’s attorney ultimately demands to settle the case. Dealers who are interested in avoiding a costly lawsuit sometimes take an economic approach and endeavor to settle the case for nuisance value soon after receiving a CLRA demand letter, even though at that point, only minimal information may be available to assess the customer’s claims. Other dealers prefer not to pay any money to settle a claim until they obtain solid proof supporting the customer’s claims because they believe doing so would send the wrong message and make them a target for more claims in the future. Ultimately, determining the best approach to respond to a CLRA demand letter requires a detailed analysis of the specific factual circumstances of each case. Given the intricacies involved with responding to a CLRA demand letter, as well as the potentially harmful consequences that can result from not responding in an appropriate manner, it is important for dealers who receive a CLRA demand letter to act promptly and consult with competent counsel. 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 www.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. 19
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Driving Change With Grasstops Advocacy There’s no getting around the fact that change is difficult. It’s challenging to change someone’s mind or opinion. Imagine the difficulty in getting a group of legislators to change a law or political stance. Auto dealers have the power to advocate for a better industry. The effects can make a huge difference to your teams, local communities, state, or even at times on a national level. In advocacy, especially when it comes to protecting and promoting the interests of auto dealers, two terms often come up: grassroots and grasstops advocacy. They sound similar, but they play very different roles. Grasstops vs. Grassroots Most people have likely heard of grassroots advocacy. This is a method of advocacy that involves recruiting ordinary people to combine their voices. The emphasis here is on the quantity of voices. Maybe you’ve donated to the NADA PAC or signed a petition to fight a bill. These efforts are significant, but sometimes, advocacy needs to go a step further. That’s where grasstops advocacy comes in. Grasstops advocacy involves individuals engaging directly with decision makers. This method relies on the quality of voices to bring about change. Have you ever personally picked up the phone to call a key legislator about an issue affecting our dealerships? Did they answer? That begs the question: How can we do better at engaging at that higher level? Grasstops advocates bring credibility, strategic influence and access — and often help open doors that grassroots advocates can walk through. A grasstops advocacy strategy isn’t just for lobbyists. In fact, as auto dealers, we are uniquely positioned to be grasstop advocates. We are community anchors, employers and, often, well-connected individuals. Grasstops advocacy taps into this influence to help shape policy outcomes from the top down. It’s about using your voice, your relationships and your credibility as an auto dealer to make a direct impact. Why it Matters A multitude of regulatory or legislative issues affect dealers, such as EV mandates, franchise laws and tax policies. In addition, it’s no secret that legislators have packed inboxes and receive many phone calls. Cultivating a relationship with a legislator can help your chances of having your email opened and your voice heard. Picture this: It’s the legislative session. A legislator is receiving a high volume of emails and calls. Everyone wants to talk to them, meet with them, and be heard. The legislator opens his or her email and scrolls through the names. A familiar name stands out. The legislator opens the email from the individual they know — in this case, you —
thus marking the winner of the legislator’s attention. This is a classic scenario reflecting a simple truth: The attention of someone in power will be caught first by a familiar name. This is why grasstops advocacy is so effective. You want the lawmakers to know your name and your story, so your voice can be heard and your cause can be advanced. How to Build a Grasstops Strategy Knowing where to start when it comes to a grasstops approach to advocacy can be intimidating. You may feel like you don’t have the time to make a difference, or maybe you’re uncomfortable reaching out to lawmakers and afraid of pushback. The easiest approach is to view the process as actionable steps. 1. Map Your Network: Identify any relationships or connections you have with local, state or federal officials. You may have more connections than you think. 2. Grow Your Network: Put yourself in situations to create relationships with individuals in the industry. Visit lawmakers, make connections and let those connections lead to more. 3. Engage Regularly: It’s important to regularly make contact with your network of legislators. You can achieve this by calling them a few times a month, interacting on social media, hosting events or inviting them to visit your dealership. 4. Tell Your Story: When talking to legislators, you want them to remember you and your story. Personalizing the relationship and showing them why you care about your dealership, the industry, and what is happening on the legislative front can help them understand your point of view and, in turn, help. Conclusion Grasstops advocacy is a powerful tool that more association members need to use. By crafting personal relationships with legislators, we can effectively fight for our industry. Grassroots and grasstops advocacy strategies should be used in tandem to champion our industry effectively. Grassroots efforts provide the quantity through widespread public engagement, while grasstops deliver the quality by leveraging the power of an influential individual to shape decision-maker perspectives. Together, they create a balanced and powerful approach that combines broad support with strategic influence. Remember, it just takes one dealer with the right connection to make all the difference. So, take the first step. Start a conversation, attend a legislative event or contact the association about getting involved. EPICBROKERS.COM ©2024 Edgewood Partners Insurance Center. All rights reserved. | CA License: 0B29370 EPIC Insurance Brokers & Consultants is proud of its partnership with more than 300 California dealerships and is the CNCDA’s only licensed broker for health insurance and employee benefits. As the dealers’ consultant, experience what EPIC can do for you, including: • A team producing significant results with decades of experience understanding the specific needs of dealerships • Fully insured and unique alternative funding options to best fit your needs and generate the best possible costs • Full compliance services and HR support for your team LEARN MORE ABOUT OUR SERVICES BY CONTACTING: Alison McCallum (949) 422-6431 alison.mccallum@epicbrokers.com 22
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