Back in April and May of this year, the economy came to a grinding halt as many cities ordered businesses to close. Things looked pretty dismal, both for our dealer clients and Bass Sox Mercer. The phone stopped ringing and several buy-sells in our pipeline were terminated by buyers.
Come...
Dealer Agreement Renewals and Modifications: Dot Your “I’s” and Cross Your “T’s”
Written by admin on . Posted in 2020, Franchise News, Newsletter.
When changes are made to your Dealer Agreement, which many times occurs upon renewal, they should be carefully scrutinized to ensure that they are not harmful to your dealership. In many states, dealers are afforded the opportunity to challenge these changes, and that opportunity may be...
Hyundai Motor America’s New ROFR Addendum
Written by admin on . Posted in 2020, Franchise News, Newsletter.
HMA has recently started sending a Right of First Refusal Addendum (the “Addendum”) to Hyundai dealers for signature. Many dealers have been questioning whether the language included in the Addendum is standard for rights of first refusal (“ROFR”) in a Dealer Sales and Service Agreement...
Changing Part Numbers or Price Due to the Volume of Repairs or an Anticipated Recall
Written by admin on . Posted in 2020, Franchise News, Newsletter.
We have heard from numerous dealers that manufacturers have been reducing part prices related to specific repairs, or changing part numbers. While a manufacturer may have legitimate reasons for doing this, it is also a tactic typically employed by manufacturers to reduce the amount of...
Waivers of Liability from COVID-19, Not All They Are Cracked Up to Be
Written by admin on . Posted in 2020, Compliance, COVID-19 Related Articles and Resources, Newsletter.
A waiver seems like a good idea to address potential liability for your dealership from COVID-19 related exposure, but it may create more problems than its ultimate value.
First, let’s examine the bigger picture here. COVID-19 related lawsuits against dealerships are likely to come from two...