VIRGINIA AUTO DEALER vada.com 18 By Michael G. Charapp, Mahdavi, Bacon, Halfhill & Young, PLLC In the last six months, we have reported on best practices you should adopt for your dealership operations. This quiz tests how carefully you have given attention to the suggestions. 1. You have received a letter from your franchisor that your sales performance is substandard in breach of your obligations under your dealer sales and service agreement. You should: A. Challenge the claim because you have had no new vehicle inventory. B. Deny the claim you have breached your DSSA because you have complied with your obligations under it. C. Take the franchisor up on its offer of assistance. D. All of the above. 2. You are purchasing three used vehicles at wholesale from a dealer in another state. You have done business with the dealer before, and you know the person with whom you are negotiating. He sends you wire instructions to pay for the vehicles. It is OK to wire the money based on the email since you know the people with whom you are dealing. True or False? 3. As a franchised dealer, you cannot sell a vehicle for export from the United States under your dealer sales and service agreement. If you do, you will face franchisor penalties. You are contacted by a buyer who asks you to sell him a new vehicle and deliver it to the port to be shipped overseas. You should: A. Question the buyer. If he will not sell it, but he will use it personally overseas, you can do the deal. B. Refuse to do the deal. C. Bump the price to pay for the expected penalties. D. None of the above. 4. Competing dealers are advertising vehicles at prices you know they don’t intend to honor. To compete, you advertise vehicles at a price, but when the customer comes in, you will Best Practices Quiz Legal Columns
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