Pub. 4 2015-2016 Issue 1

Summer 2015 21 as described below); • Lease “blank box” language; and • Pre-contract disclosures (recommended, since this document is required under the same law governing conditional sale contracts) • Any subsequent document making substantial changes in the rights and obligations of the parties, which likely includes: • 10-day rescission notice (a.k.a.“notice of election to cancel”); and • Rewrite or cancellation acknowledgement forms; • 15-day repossession letters (a.k.a.,“notice of intention to dispose of motor vehicle”) Thankfully, the law clarifies that the translation requirements do not apply to certain subsequent documents authorized or contemplated by the original document, which would likely include: • Periodic statements, sales slips, or invoices made pursuant to a credit card agreement or other account, • Add-on sale memoranda (e.g., a service contract agreement); and • Refinancing documents. [Reference: Civil Code § 1632(b) and (g)] While the law states that “every term and condition” must be trans- lated, the translation may retain the following elements of the English language contract: • Names and titles of individuals and other persons; • Addresses; • Brand names; • Trade names; • Trademarks; • Registered service marks; • Full or abbreviated designations of the make andmodel of goods or services (e.g., General Motors, or GM); • Alphanumeric codes; • Numerals; • Dollar amounts expressed in numerals; • Dates; and • Individual words or expressions without a generally-accepted non-English translation. Note: One tricky element is translating the box used to disclosewhether a vehicle is being sold as new or used. Dealers are advised to print “Nuevo” or “Usado” in translated Spanish contracts, and the equivalent terms in the Asian language translations. If your DMS cannot print the Asian equivalent word (e.g., the Chinese character for“New”), we advise dealership personnel to handprint the character in the appropriate box, and have the customer initial next to the handprinted character. [Reference: Civil Code § 1632(i)] The translated version of the contract may be executed, but doing so is neither required nor advised. The law specifically provides that the terms of the contract that is executed in English is the controlling version of the contract for determining the rights and obligations of the parties. That said, if the translation conflicts with the English version badly enough, this fact can be used to show that no contract was entered into due to a substantial difference in material terms and conditions between the contract and the translation. [Reference: Civil Code § 1632(j)] Don’t Forget the Sign The law also requires that a sign in the negotiation language be conspicuously displayed at the time and place the contract is executed, informing the purchaser that the business is required to provide a trans- lated copy of the contract in the negotiation language. The law clarifies that if the business has multiple locations or branches, the requirements only apply to the locations where the negotiation language is used. [Reference: Civil Code § 1632(f)] Practical Tips In practical terms, dealers who negotiate in some or all of the covered languages must take stock of which sales and finance staff negotiate in which foreign languages, and make sure that procedures are followed to ensure that required translations are provided. On the other hand, some dealerships may simply not happen to have employees who speak one of the covered languages, or may implement a policy of not allowing their staff to negotiate in these languages, which makes compliance with the law easier. Sales: Take note of which sales staff speak one of the covered languages, and ensure a process is in place whereby the salesperson will inform the finance writer that negotiations took place in the foreign language. This way, the finance staff will know that they will need to provide translated documents, and ensure that the actual documents are executed in an office with the required foreign language signage posted. Finance: A finance writer who negotiates a transaction in a foreign language (or learns that a transaction was negotiated in a covered language) needs tomake sure they have translated documents available, and needs to provide these versions to the customer. While Reynolds and Reynolds produces translated versions of key required documents such as the LAW 553-CA-ARB, the Pre-Contract Disclosure form, the Used Vehicle Contract Cancellation Option Agreement, the Notice of Contract Cancellation, and the Acknowledgement of Canceled Contract, be aware Continued on page 22