Digital Dealer - June 2018 - 19
provisions of your state
motor vehicle franchise
laws prohibit a manufacturer from requiring the
very thing contained in
the addendum. This is
because third-party decision makers who are
not familiar with the automotive industry have
difficulty getting past the
fact that an experienced
business person like a
dealer could agree to
certain terms in writing
but then ultimately be
freed from performance
under those terms. In
their mind, a contract is
a binding agreement.
These arbitrators and
judges do not understand the economic
power the OEMs wield
over their dealer networks.
Apart from the Sales
and Service Agreement
addenda, manufacturers
regularly send dealers the terms of new
manufacturer initiatives
in the form of a separate
agreement. These include new facility image
programs, data sharing
agreements, exclusive
use/site control agreements, a new vehicle
model agreement (think
Genesis participation agreement), new
vehicle loaner/customer
concierge program, etc.
Dealers should always
have these agreements
reviewed by experienced motor vehicle
franchise counsel to
determine if any of the
...THE DEALER
HAS THE OPTION
OF CONTINUING TO
OPERATE UNDER THE
TERMS OF THE PRIOR
SALES AND SERVICE
AGREEMENT."
terms are a concern to
the dealership. If so, dealers should not hesitate
to engage the factory
in negotiations over the
most concerning portions
of these agreements/
programs. Dealers who
have done so have been
surprised at the ability to
obtain favorable changes
to provisions within those
agreements/programs.
Even if no changes are
ultimately agreed upon
if the dealer chooses to
proceed he or she is going in with full knowledge
of the pitfalls and can
prepare accordingly. Likewise, an attempt to negotiate the terms of these
ancillary agreements/
programs, which should
always be done in writing,
will serve to create a
record of the dealership's
objection to certain terms,
which may be very useful
in any future dispute over
those terms.
Dealers are encouraged to pay close
attention to agreements
and program terms sent
to the dealership in the
normal course of business. Those agreements
should be reviewed and,
if appropriate, changes
negotiated to make them
acceptable to the dealership. Look at it as an oil
change for your engine.
Those who avoid this preventive maintenance will
find themselves standing
on the side of the road
faced with the prospect of
a very expensive engine
replacement.
RICHARD SOX is a partner
at Bass Sox Mercer. His
primary area of practice is
automobile franchise law. In
this capacity, Rich provides
counsel to dealers regarding
their rights and obligations
as related to manufacturers.
Rich represents dealers
in both manufacturersponsored and judicial
mediation, state-mandated
administrative proceedings
as well as in state and
federal court. EMAIL:
rsox@dealerlawyer.com
D I G I TA L D E A L E R . C O M
JUNE 2018
19
http://www.DIGITALDEALER.COM
Table of Contents for the Digital Edition of Digital Dealer - June 2018
Digital Dealer - June 2018
Contents
Letter from the Show Director
The Power of Bear’s a “Little Bit Extra”
Sustained Legacy for Greatness - So Many Layers of Benefits to Be Derived
Innovate & Adapt
Subscribe & Drive
A Little Preventive Maintenance Goes a Long Way in Protecting Your Franchise Investment
A Metric That Merits More Attention— Your Used/New Sales Ratio
The Law of Attraction
How to Tailor the Brand Experience for the Decision Maker
The Power of Internal Marketing!
Andrew Walser Walser Automotive Group
The Perfect Dealership: Mastering the Basics
Wanna Hurt or Maim Someone? Use Their Vehicle!
Fixed Ops BFF
Broken Links Lead to Broken Relationships
5 Ways to Immediately Improve Your Social Media Strategy
Don’t Be Shy – The Tough Questions You Should Be Asking Vendors
4 Ways F&I Managers Can Win Over the Sales Team
The Consultative Approach to Selling
Digital Dealer - June 2018 - CT1
Digital Dealer - June 2018 - CT2
Digital Dealer - June 2018 - Digital Dealer - June 2018
Digital Dealer - June 2018 - Cover2
Digital Dealer - June 2018 - 1
Digital Dealer - June 2018 - Contents
Digital Dealer - June 2018 - 3
Digital Dealer - June 2018 - Letter from the Show Director
Digital Dealer - June 2018 - 5
Digital Dealer - June 2018 - The Power of Bear’s a “Little Bit Extra”
Digital Dealer - June 2018 - 7
Digital Dealer - June 2018 - Sustained Legacy for Greatness - So Many Layers of Benefits to Be Derived
Digital Dealer - June 2018 - 9
Digital Dealer - June 2018 - 10
Digital Dealer - June 2018 - 11
Digital Dealer - June 2018 - Innovate & Adapt
Digital Dealer - June 2018 - 13
Digital Dealer - June 2018 - 14
Digital Dealer - June 2018 - 15
Digital Dealer - June 2018 - Subscribe & Drive
Digital Dealer - June 2018 - 17
Digital Dealer - June 2018 - A Little Preventive Maintenance Goes a Long Way in Protecting Your Franchise Investment
Digital Dealer - June 2018 - 19
Digital Dealer - June 2018 - A Metric That Merits More Attention— Your Used/New Sales Ratio
Digital Dealer - June 2018 - 21
Digital Dealer - June 2018 - The Law of Attraction
Digital Dealer - June 2018 - 23
Digital Dealer - June 2018 - How to Tailor the Brand Experience for the Decision Maker
Digital Dealer - June 2018 - 25
Digital Dealer - June 2018 - The Power of Internal Marketing!
Digital Dealer - June 2018 - 27
Digital Dealer - June 2018 - Andrew Walser Walser Automotive Group
Digital Dealer - June 2018 - 29
Digital Dealer - June 2018 - 30
Digital Dealer - June 2018 - 31
Digital Dealer - June 2018 - 32
Digital Dealer - June 2018 - 33
Digital Dealer - June 2018 - The Perfect Dealership: Mastering the Basics
Digital Dealer - June 2018 - 35
Digital Dealer - June 2018 - Wanna Hurt or Maim Someone? Use Their Vehicle!
Digital Dealer - June 2018 - 37
Digital Dealer - June 2018 - Fixed Ops BFF
Digital Dealer - June 2018 - 39
Digital Dealer - June 2018 - Broken Links Lead to Broken Relationships
Digital Dealer - June 2018 - 41
Digital Dealer - June 2018 - 5 Ways to Immediately Improve Your Social Media Strategy
Digital Dealer - June 2018 - 43
Digital Dealer - June 2018 - Don’t Be Shy – The Tough Questions You Should Be Asking Vendors
Digital Dealer - June 2018 - 45
Digital Dealer - June 2018 - 4 Ways F&I Managers Can Win Over the Sales Team
Digital Dealer - June 2018 - 47
Digital Dealer - June 2018 - The Consultative Approach to Selling
Digital Dealer - June 2018 - Cover3
Digital Dealer - June 2018 - Cover4
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