COUNSELOR’S CORNER Evaluating Your Internal Compliance Processes To Lessen Your Legal Exposure By Johnnie Brown, Esq. Pullin, Fowler, Flanagan, Brown & Poe PLLC I hope everyone is doing well and enjoying this beautiful West Virginia spring. While spring normally brings increased customer traffic, increased interest rates and the uncertainty of tariffs are causing unpredictability in our markets. Despite these challenges, there is good news to report. The industry has fought back the Federal Trade Commission’s Vehicle Shopping Rule administrative regulations, and there is a good chance that the current administration will not seek to revive this extremely misguided administrative rule, which would have dramatically and negatively changed the vehicle shopping experience for millions of customers. On the other hand, please be aware that states are developing their own versions of the Vehicle Shopping Rule, currently California and Massachusetts. Furthermore, the Federal Trade Commission has been attempting to impose the Vehicle Shopping Rule’s requirements and mandates through consent orders even though the administrative rule has been rejected by the federal courts. Congratulations to the West Virginia Dealers Association for their legislative success this year! No negative legislation was passed. On the positive side, the Department of Motor Vehicles passed legislation clarifying the path forward on electronic titling, which will greatly assist your internal operations and assist the consumers with a more efficient means of ownership transfer with the safe operating confides of the Department of Motor Vehicles system. West Virginia has been a leader on electronic titling — kudos and thanks to both the West Virginia Department of Motor Vehicles and the West Virginia Automobile Dealer Association. Just three things I wish to mention, and hopefully, you will evaluate your internal compliance processes to lessen your legal exposure. I have seen issues arising over the recent hailstorms that impacted West Virginia, increased legal complaints about voluntary protection products, and questions about how to handle the increased number of vehicles with recalls. HAIL DAMAGE Can we sell a motor vehicle that has received hail damage? What are our disclosure requirements? The short answer is yes, you can, but let’s use a compliant disclosure. Over 15 years ago, I prepared and provided the association with a Hailstorm Damage Disclosure and Release. If you have misplaced your disclosure, please contact me or the association and we will be happy to provide another copy. I encourage all dealers to disclose as much information as possible to the consumer, disclosing the areas of the motor vehicle that were damaged, and perhaps including a report prepared by the vendor who inspected the particular motor vehicle, along with any photos you may have. 20 WVADA NEWS
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