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Automotive and Vehicle Dealerships

Industry Team

  • E.V. Manufacturer Cruises to Victory on Appeal with Specific, Robust Disclosures
Profile
Sectors
Services
Experience
People

Our Automotive and Vehicle Dealerships Industry Team gained widespread recognition assisting with drafting Section 747 of the Consolidated Appropriations Act of 2010 (Dealer Arbitration Law) and by representing the National Association of Minority Auto Dealers and its membership during the Chrysler and GM congressionally facilitated negotiations, as well as the interests of the National Association of Automotive Dealers and the Automotive Trade Executives Association. We represent a wide variety of new and used automotive and vehicle dealer principals and franchise owners and participate in regional dealership associations. We also counsel and represent the interests of construction

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Acquisitions and Divestitures

Our attorneys have extensive experience handling the wide range of issues associated with dealership acquisitions and divestitures. This includes tax, finance, structure, environmental, ERISA, securities, labor relations, real estate matters and acquiring, maintaining and divesting fleets of vehicles. We work with buyers, sellers, financial sources, parties to joint ventures, and members of strategic alliances in structuring transactions and protecting our clients’ interests. To better serve our clients, we also assist them with finding capital, partners and advisors.

Attorney General Matters

The New York State Office of the Attorney General historically has focused on automotive dealers and taken an aggressive posture with respect to their advertising practices. Investigations are conducted for individual consumer complaints and in the areas of advertising financing of vehicle purchases, and vehicle repairs. Harris Beach attorneys have defended numerous dealerships in the course of these investigations and have helped them negotiate resolutions, thereby minimizing the risk of formal public proceedings. This includes the negotiation of “Assurance Agreements” and related fines. Our attorneys also provide guidance on compliance with the attorney general’s requirements.

Commercial Real Estate and Finance

Whether an automobile dealer is considering vacant land for a potential dealership site, purchasing an existing dealership site or acquiring a building to convert it to a dealership, we assist dealers through the entire process. That process involves handling zoning, land use and environmental issues, and assisting dealers in obtaining financing as well as seeking available government sponsored tax credit programs.

Consumer and Privacy Protection

Consumers who purchase a new or used vehicle from a New York state dealership are automatically covered by a number of federal and state protections. Harris Beach attorneys regularly counsel automotive and vehicle dealerships on warranty issues, including manufacturer warranties on new vehicles and New York state minimum warranty standards (Lemon Laws) for new and used vehicles. Our attorneys provide guidance and training on the full range of privacy concerns which affect automotive and vehicle dealerships in New York state. We counsel industry clients on compliance with the Gramm-Leach-Bliley Act (GLBA), and the Federal Trade Commission’s Privacy Rule and Safeguards Rule. The GLBA requires that dealers ensure the security and confidentiality of nonpublic personal information they collect from their customers, and imposes restrictions on banks and other financing institutions contacted by dealers. The Privacy Rule requires that dealers provide customers a written notice of their privacy policies and practices, and the Safeguards Rule requires dealers to conduct a thorough risk assessment of their security measures and design a comprehensive information security program to protect their customers’ nonpublic personal information.

Dealer-Manufacturer Agreements

Our attorneys handle all matters related to the dealer-manufacturer agreements, including franchise agreements, rates of compensation for service warranty work, requirements for facilities, signage upgrades for existing dealerships, terms of approval for new locations, audits of warranty work, product allocation and demands by manufacturers for dedicated parts. Harris Beach representation includes handling disputes over responsibility for maintenance of manufacturer-owned property; matters related to new car sales personnel; service personnel certifications; and manufacturer demands for minimum customer parking, minimum inventory space, minimum service technicians, dedicated and certified service parts department staff, separate cashier stations for different make vehicles, separately outfitted showrooms, manufacturer approval of succession plans and admission of new partners.

Department of the Treasury Requirements

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals. Harris Beach helps dealerships comply with OFAC sanctions and adhere to laws such as The USA PATRIOT Act. This includes assisting with responses to credit agency reports and reviews of non-credit transactions requiring verification that the dealer is not conducting business with persons on the Specially Designated Nationals and Blocked Persons lists.

Environmental Law

We assist dealers in preparing their properties for ease of conveyance, addressing environmental risk associated with operations and negotiations with the Department of Environmental Conservation (DEC) concerning releases of hazardous substances. We counsel clients on regulatory matters involving the Occupational Safety and Health Act (OSHA) and the Environmental Protection Agency (EPA). We also advise clients on the liabilities related to underground and above ground petroleum storage tanks and disposal of hazardous materials, including heavy metals, ignitable wastes, solvents, toxic wastes and paints.

Federal Reporting Requirements

Our attorneys provide counsel on federal compliance and reporting requirements, including the Equal Credit Opportunity Act, Fair Credit Reporting Act and Federal Trade Commission Act.

Financing and Incentives

We are familiar with, and advise dealers on, the Equal Credit Opportunity Act and Regulation B which govern the procedures dealers follow when assisting customers with arranging credit. We are also following the state of New York’s possible adoption of a regulatory framework in which dealers would be obligated to disclose the incentives they receive in connection with financing secured for customers.

Franchising and Licensing

Our attorneys leverage their collective automotive dealership company experience to provide effective counsel to clients on dealership licensing requirements, franchise agreements and disputes, and the respective merits of licensing versus franchising as business expansion strategies.

General Liability Defense

Harris Beach attorneys have defended automotive industry clients in a wide variety of litigated matters, including providing regional counsel in personal injury defense matters.

Inspections and Hearings Before the DMV

Our attorneys represent dealers in Department of Motor Vehicles hearings. Two of the issues often addressed are alleged improper inspection practices and licensing problems.

IRS Cash Reporting

In connection with efforts to avoid money laundering and to ferret out terrorist activities, the federal government requires reporting of certain cash transactions. For example, reporting too many cash transactions may trigger an IRS audit of a dealership. We are familiar with these guidelines through our representation of both financial institutions and auto dealerships.

Labor and Employment Law

Harris Beach advises clients on all areas of employer/employee relations, the hiring and firing of employees, harassment and discrimination issues, federal and state minimum wage, overtime laws, notice requirement, employee handbooks, employee policies, rules governing commissioned sales personnel, the Fair Labor Standards Act and safety in the workplace (OSHA) issues. We have an extensive track record of successfully representing company management when faced with union organizing and/or collective bargaining negotiation issues. Our attorneys have substantial experience in litigating employment matters, including class actions, in federal and state courts.

We also provide preventive legal advice and training for all levels of management on Family Medical Leave Act (FMLA), Americans with Disabilities (ADA), handling and investigating sexual harassment and discrimination claims, hiring and firing, and many other workplace issues.

New York’s Statutory Framework for Dealerships

Unlike most other states, New York has enacted specific statutory protections for automobile dealers in their dealings with automotive manufacturers. The familiarity of Harris Beach attorneys with these special protections has enabled our clients to successfully confront manufacturers over threatened franchise terminations, disputes concerning warranty reimbursement and repairs, succession planning and site control.

Real Property Tax Assessment Disputes

Our attorneys represent dealerships in proceedings to lower real property tax assessments and regularly handle matters involving the loss of actual and/or potential display space. We provide dealership clients with knowledgeable and aggressive representation in tax assessment disputes.

We also recognize that it is usually beneficial to both sides to resolve these disputes without litigation. We have considerable experience in bringing parties together to work out solutions without a court battle, as well as considerable experience in the trial of these cases if fair settlements for our clients cannot be obtained.

Site Control

Increasingly, dealerships face auto manufacturers’ efforts to exert control over or influence the appearance, configuration or location of dealership property. Harris Beach has represented dealers in negotiation and litigation of such matters, including disputes over dualing of dealerships, modification of manufacturer programs to exclude dualed dealers, configuration of properties and conditioning of approvals on steps to separate facilities for different lines of vehicles.

Succession Planning and Partnership Agreements

Attorneys with our Automotive and Vehicle Dealerships Industry Team help plan and execute strategies designed to meet our clients’ business and personal goals, as well as providing practical recommendations to help them minimize tax costs and comply with increasingly complex tax regulations. From partnership agreements to business succession planning, our attorneys are familiar with the issues unique to automotive and vehicle dealerships. We help dealership owners develop plans so they can transfer their businesses to their children, while minimizing the impact of estate and gift taxes. We also represent dealers in disputes between partners/shareholders.

Team Leader(s)

Todd Bullard

H. Todd Bullard

Member

Team

Legal Alert, All Insights, All Publications |
 December 19, 2022
E.V. Manufacturer Cruises to Victory on Appeal with Specific, Robust Disclosures
NYs Appellate Division recently affirmed dismissal, with prejudice, of a securities class action lawsuit against Chinese electric vehicle....read more
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 July 24, 2020
I-9 Compliance in a Pandemic World: Advice for Employers
In welcome news for employers, the U.S. Department of Homeland Security (DHS) has once again agreed to extend its exercise of discretion to ...read more
All Insights, All Publications, Covid-19, Legal Alert |
 June 26, 2020
New York, New Jersey and Connecticut Issue Travel Advisory Requiring Quarantines for Travelers from Other States
Following publication of this Alert, Gov. Cuomo issued an Executive Order making an important change to employee leave rights related to vol...read more
All Insights, All Publications, Covid-19, Legal Alert |
 May 21, 2020
New York State Courts to Expand New Lawsuit Filings via NYSCEF and Continue Limited In-Person Reopening Process
By press release and memorandum, the New York State Unified Court System announced that beginning on May 21, 2020, it will permit parties to...read more
All Insights, All Publications, Covid-19, Legal Alert |
 May 15, 2020
New York State Courts to Carefully Reopen In-Person Processes in Thirty Upstate Counties with Restrictions in Place Statewide
By press release, the New York State Unified Court System announced a gradual return to in-person courthouse operations for thirty upstate, ...read more
All Insights, Advisory, All Publications, Covid-19 |
 April 23, 2020
Summary of New York Executive Orders During COVID Pandemic
New York State Gov. Andrew M. Cuomo declared a statewide disaster emergency on March 7, 2020, in direct response to the ongoing COVID-19 pan...read more
All Insights, All Publications, Covid-19, Legal Alert |
 April 9, 2020
Summarizing Gov. Cuomo’s Latest COVID-19 Executive Order – No. 202.14
Gov. Andrew Cuomo issued New York State Executive Order ("EO") No. 202.14, the 15th  EO issued during the COVID-19 state of emergency. These...read more
All Insights, All Publications, Covid-19, Legal Alert |
 April 1, 2020
Emergency Loans Available to Small Businesses Under CARES Act
Congress has acted in support of small businesses in the wake of the COVID-19 pandemic by low-interest federal disaster loans for working ca...read more
All Insights, All Publications, Covid-19, Legal Alert |
 April 1, 2020
Fast Facts on Paycheck Protection Program Under COVID-19 Relief Bill
The CARES Act (the "Act"), signed into law on March 27, is a wide-sweeping stimulus package, estimated at $2.2 trillion, that provides small...read more

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Automotive and Vehicle Dealerships

Industry Team

■ Profile

Our Automotive and Vehicle Dealerships Industry Team gained widespread recognition assisting with drafting Section 747 of the Consolidated Appropriations Act of 2010 (Dealer Arbitration Law) and by representing the National Association of Minority Auto Dealers and its membership during the Chrysler and GM congressionally facilitated negotiations, as well as the interests of the National Association of Automotive Dealers and the Automotive Trade Executives Association. We represent a wide variety of new and used automotive and vehicle dealer principals and franchise owners and participate in regional dealership associations. We also counsel and represent the interests of construction

■ Services

Acquisitions and Divestitures

Our attorneys have extensive experience handling the wide range of issues associated with dealership acquisitions and divestitures. This includes tax, finance, structure, environmental, ERISA, securities, labor relations, real estate matters and acquiring, maintaining and divesting fleets of vehicles. We work with buyers, sellers, financial sources, parties to joint ventures, and members of strategic alliances in structuring transactions and protecting our clients’ interests. To better serve our clients, we also assist them with finding capital, partners and advisors.

Attorney General Matters

The New York State Office of the Attorney General historically has focused on automotive dealers and taken an aggressive posture with respect to their advertising practices. Investigations are conducted for individual consumer complaints and in the areas of advertising financing of vehicle purchases, and vehicle repairs. Harris Beach attorneys have defended numerous dealerships in the course of these investigations and have helped them negotiate resolutions, thereby minimizing the risk of formal public proceedings. This includes the negotiation of “Assurance Agreements” and related fines. Our attorneys also provide guidance on compliance with the attorney general’s requirements.

Commercial Real Estate and Finance

Whether an automobile dealer is considering vacant land for a potential dealership site, purchasing an existing dealership site or acquiring a building to convert it to a dealership, we assist dealers through the entire process. That process involves handling zoning, land use and environmental issues, and assisting dealers in obtaining financing as well as seeking available government sponsored tax credit programs.

Consumer and Privacy Protection

Consumers who purchase a new or used vehicle from a New York state dealership are automatically covered by a number of federal and state protections. Harris Beach attorneys regularly counsel automotive and vehicle dealerships on warranty issues, including manufacturer warranties on new vehicles and New York state minimum warranty standards (Lemon Laws) for new and used vehicles. Our attorneys provide guidance and training on the full range of privacy concerns which affect automotive and vehicle dealerships in New York state. We counsel industry clients on compliance with the Gramm-Leach-Bliley Act (GLBA), and the Federal Trade Commission’s Privacy Rule and Safeguards Rule. The GLBA requires that dealers ensure the security and confidentiality of nonpublic personal information they collect from their customers, and imposes restrictions on banks and other financing institutions contacted by dealers. The Privacy Rule requires that dealers provide customers a written notice of their privacy policies and practices, and the Safeguards Rule requires dealers to conduct a thorough risk assessment of their security measures and design a comprehensive information security program to protect their customers’ nonpublic personal information.

Dealer-Manufacturer Agreements

Our attorneys handle all matters related to the dealer-manufacturer agreements, including franchise agreements, rates of compensation for service warranty work, requirements for facilities, signage upgrades for existing dealerships, terms of approval for new locations, audits of warranty work, product allocation and demands by manufacturers for dedicated parts. Harris Beach representation includes handling disputes over responsibility for maintenance of manufacturer-owned property; matters related to new car sales personnel; service personnel certifications; and manufacturer demands for minimum customer parking, minimum inventory space, minimum service technicians, dedicated and certified service parts department staff, separate cashier stations for different make vehicles, separately outfitted showrooms, manufacturer approval of succession plans and admission of new partners.

Department of the Treasury Requirements

The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals. Harris Beach helps dealerships comply with OFAC sanctions and adhere to laws such as The USA PATRIOT Act. This includes assisting with responses to credit agency reports and reviews of non-credit transactions requiring verification that the dealer is not conducting business with persons on the Specially Designated Nationals and Blocked Persons lists.

Environmental Law

We assist dealers in preparing their properties for ease of conveyance, addressing environmental risk associated with operations and negotiations with the Department of Environmental Conservation (DEC) concerning releases of hazardous substances. We counsel clients on regulatory matters involving the Occupational Safety and Health Act (OSHA) and the Environmental Protection Agency (EPA). We also advise clients on the liabilities related to underground and above ground petroleum storage tanks and disposal of hazardous materials, including heavy metals, ignitable wastes, solvents, toxic wastes and paints.

Federal Reporting Requirements

Our attorneys provide counsel on federal compliance and reporting requirements, including the Equal Credit Opportunity Act, Fair Credit Reporting Act and Federal Trade Commission Act.

Financing and Incentives

We are familiar with, and advise dealers on, the Equal Credit Opportunity Act and Regulation B which govern the procedures dealers follow when assisting customers with arranging credit. We are also following the state of New York’s possible adoption of a regulatory framework in which dealers would be obligated to disclose the incentives they receive in connection with financing secured for customers.

Franchising and Licensing

Our attorneys leverage their collective automotive dealership company experience to provide effective counsel to clients on dealership licensing requirements, franchise agreements and disputes, and the respective merits of licensing versus franchising as business expansion strategies.

General Liability Defense

Harris Beach attorneys have defended automotive industry clients in a wide variety of litigated matters, including providing regional counsel in personal injury defense matters.

Inspections and Hearings Before the DMV

Our attorneys represent dealers in Department of Motor Vehicles hearings. Two of the issues often addressed are alleged improper inspection practices and licensing problems.

IRS Cash Reporting

In connection with efforts to avoid money laundering and to ferret out terrorist activities, the federal government requires reporting of certain cash transactions. For example, reporting too many cash transactions may trigger an IRS audit of a dealership. We are familiar with these guidelines through our representation of both financial institutions and auto dealerships.

Labor and Employment Law

Harris Beach advises clients on all areas of employer/employee relations, the hiring and firing of employees, harassment and discrimination issues, federal and state minimum wage, overtime laws, notice requirement, employee handbooks, employee policies, rules governing commissioned sales personnel, the Fair Labor Standards Act and safety in the workplace (OSHA) issues. We have an extensive track record of successfully representing company management when faced with union organizing and/or collective bargaining negotiation issues. Our attorneys have substantial experience in litigating employment matters, including class actions, in federal and state courts.

We also provide preventive legal advice and training for all levels of management on Family Medical Leave Act (FMLA), Americans with Disabilities (ADA), handling and investigating sexual harassment and discrimination claims, hiring and firing, and many other workplace issues.

New York’s Statutory Framework for Dealerships

Unlike most other states, New York has enacted specific statutory protections for automobile dealers in their dealings with automotive manufacturers. The familiarity of Harris Beach attorneys with these special protections has enabled our clients to successfully confront manufacturers over threatened franchise terminations, disputes concerning warranty reimbursement and repairs, succession planning and site control.

Real Property Tax Assessment Disputes

Our attorneys represent dealerships in proceedings to lower real property tax assessments and regularly handle matters involving the loss of actual and/or potential display space. We provide dealership clients with knowledgeable and aggressive representation in tax assessment disputes.

We also recognize that it is usually beneficial to both sides to resolve these disputes without litigation. We have considerable experience in bringing parties together to work out solutions without a court battle, as well as considerable experience in the trial of these cases if fair settlements for our clients cannot be obtained.

Site Control

Increasingly, dealerships face auto manufacturers’ efforts to exert control over or influence the appearance, configuration or location of dealership property. Harris Beach has represented dealers in negotiation and litigation of such matters, including disputes over dualing of dealerships, modification of manufacturer programs to exclude dualed dealers, configuration of properties and conditioning of approvals on steps to separate facilities for different lines of vehicles.

Succession Planning and Partnership Agreements

Attorneys with our Automotive and Vehicle Dealerships Industry Team help plan and execute strategies designed to meet our clients’ business and personal goals, as well as providing practical recommendations to help them minimize tax costs and comply with increasingly complex tax regulations. From partnership agreements to business succession planning, our attorneys are familiar with the issues unique to automotive and vehicle dealerships. We help dealership owners develop plans so they can transfer their businesses to their children, while minimizing the impact of estate and gift taxes. We also represent dealers in disputes between partners/shareholders.

■ People

Team Leaders

H. Todd Bullard

Member
(585) 419-8696
tbullard@harrisbeach.com

Team

Patrick J. Dalton

Member
(585) 419-8607
pdalton@harrisbeach.com

Douglas A. Foss

Counsel
(585) 419-8612
dfoss@harrisbeach.com

Brendan P. Hall

Associate
(212) 912-3635
bhall@harrisbeach.com

Christopher D. Jagel

Chief Executive Officer
(585) 419-8617
cjagel@harrisbeach.com

Frank C. Muggia

Member
(716) 200-5131
fmuggia@harrisbeach.com

James P. Nonkes

Member
(585) 419-8611
jnonkes@harrisbeach.com

Lee E. Woodard

Member
(315) 214-2010
lwoodard@harrisbeach.com

Harris Beach and its subsidiaries provide a full range of legal and professional services for clients across New York state, as well as nationally and internationally. Harris Beach is among the country’s top law firms as ranked by The National Law Journal and is among the BTI Elite law firms based on in-depth interviews of more than 600 corporate counsel at the world’s largest and most influential companies. Our clients include Fortune 100 corporations, privately-held companies, emerging businesses, public sector entities, not-for-profit organizations and individuals. Principal industries we represent include education, energy, financial, food and beverage, health care, insurance, manufacturing, medical and life sciences, real estate developers, and state and local governments and authorities.

Industry Teams
Automotive and Vehicle Dealerships
Blockchain and Digital Assets 
Cannabis
Construction and Surety
Educational Institutions Higher Ed
Educational Institutions K-12
EMS and Fire Protection Providers
Energy
Financial Institutions and Capital Markets
Food and Beverage
Health Care
Industrial and Consumer Manufacturing
Medical and Life Sciences
Municipalities and Local Agencies
Nanotechnology
Photonics
Racing and Gaming
Real Estate Developers
Science and Technology
Telecommunications and Media
Unmanned Aircraft Systems
USA Collegiate Sports
Veterinary Medicine

Practices
Alternative Dispute Resolution
Appellate
Business and Commercial Litigation
Collection Law
Commercial Real Estate
Corporate
Cybersecurity Protection and Response
Diversity Compliance
E-Discovery (e-infoSM)
Employee Benefits
Employment Litigation
Environmental Law
Environmental, Social and Governance (ESG)
Financial Restructuring, Bankruptcy and Creditors’ Rights
Government Compliance and Investigations
Health Law
Immigration Law
Insurance Coverage
Intellectual Property Law
International Trade Law
Internet Law
Labor and Employment Law
Mass Torts and Industry-Wide Litigation
New Markets Tax Credit
Patent, Trademark and Copyright Law
Product Liability and Comprehensive General Liability
Public Finance and Economic Development
Real Property Valuation Litigation
Residential Real Estate
Tax Law
White Collar Crime
Wills, Trusts and Estates

Consulting Services
HB Solutions LLC
Collegiate Sports Compliance
Data Privacy and Cybersecurity
Economic Development and Public Affairs
Educational Institution Assistance
EMRG® (E-Discovery Management Resources Group)
Energy
Health and Human Services
Human Resources
Information Technology
Marketing and Communication Services
Municipal and Local Agency Assistance

HB Cornerstone LLC
Owner Representation
Design Services
Facilities Consulting
Move Management

Caetra.io
CyMetric (Cybersecurity Regulation Compliance Software)

Offices throughout New York:

Albany
677 Broadway
Albany, NY 12207
518-427-9700

Buffalo
726 Exchange Street
Buffalo, NY 14210
716-200-5050

Ithaca
119 East Seneca Street
Ithaca, NY 14850
607-273-6444

Long Island
333 Earle Ovington Boulevard
Uniondale, NY 11553
516-880-8484

New York City
100 Wall Street
New York, NY 10005
212-687-0100

Rochester
99 Garnsey Road
Pittsford, NY 14534
585-419-8800

Saratoga Springs
513 Broadway
Saratoga Springs, NY 12866
518-587-0551

Syracuse
333 West Washington Street
Syracuse, NY 13202
315-423-7100

White Plains
445 Hamilton Avenue
White Plains, NY 10601
914-683-1200

Offices also in:

New Haven, CT
195 Church Street
New Haven, CT 06510
203-784-3159

Newark, NJ
One Gateway Center
Newark, NJ 07102
973-848-1244

Washington, DC
800-685-1429

Attorney Advertising. Prior results do not guarantee a similar outcome.
© 2022 Harris Beach PLLC

Content current as of April 1, 2023 9:18 pm
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