Pub. 1 2012-2013 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 1 new jersey auto retailer W W W . N J C A R . O R G ©2012 New Jersey Coalition of Automotive Retailers | the newsLINK Group, LLC. All rights reserved. The New Jersey Auto Retailer is published four times each year by the newsLINK Group, LLC for the New Jersey Coalition of Automotive Retailers and is the official publication for this association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the New Jersey Coalition of Automotive Retailers, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The New Jersey Auto Retailer is a collective work and as such some articles are submitted by authors that are independent of the New Jersey Coalition of Automotive Retailers. While the New Jersey Auto Retailer encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at: 855.747.4003. 2 Chairman’s Message WILLIAM KUNDERT, JR. 3 President’s Message JAMES B. APPLETON 7 NADA Director’s Message MARCY H. MAGUIRE 9 Dealership Workplace Demographics are Changing SANDRA SCHECTMAN 11 40+ Year of the Franchise Practices Act 14 The 2011 Franchise Practices Act Amendments — One Year Later MARVIN J. BRAUTH, ESQ. 16 An (Amended) Franchise Practices Act Case Study THOMAS G. RUSSOMANO, ESQ. 19 Impact of the Franchise Law Amendments on Buy-Sells JOSEPH S. ABOYOUN, ESQ. 23 Dealer Beware: Admitting Deficiencies & Promising “Cures” Can Threaten Your Franchise ERIC L. CHASE, ESQ. 28 Some Observations Regarding The New “Protest Statute” ALAN E. DAVIS, ESQ., ERIC H. MELZER, ESQ., AND CHRISTOPHER J. LEDOUX, ESQ. 30 Nine Pillars for Creating Long-Term Dealership Profitability MICHAEL ROPPO, CPA 30 HIPAA Compliance Auditing... Is Your Dealership Prepared? BENJAMIN S. LUPIN PUBLISHED BY THE NEWSLINK GROUP, LLC 855.747.4003 MEMBERS OF THE NJ CAR BOARD OF TRUSTEES 2011-2012 COUNTY TRUSTEES William Kundert, Jr...................................................................................................... Chairman Mark Pellegrino.................................................................................................... Vice Chairman James T. Botsacos....................................................................................................... Secretary John Manganelli........................................................................................................... Treasurer Richard A. DeSilva, Jr....................................... Regional Vice President (Northern Region I) Eric Nielsen...................................................... Regional Vice President (Northern Region II) Robert J. Larson...................................................... Regional Vice President (Central Region) Lawrence W. Kull................................................ Regional Vice President (Southern Region) Michael M. McGuire ..................................................................................... Budget Chairman Edward J. Rossi.............................................................. NJ CAR Insurance Co. Ltd. Chairman Paul Larson, Jr......................................................................... NJ CAR Services, Inc. President Frank M. Pezzolla ......................................................................... Truck Committee Chairman Raymond M. Burke, III................................................................................. CAR-PAC President Marcy H. Maguire...................................................................... NADA Director for New Jersey James B. Appleton........................................................................................................ President ATLANTIC William Kassner Vacancy (Alt.) BERGEN H. Dennis Lauzon Todd Van Duren Scott R. Senior BURLINGTON Michael Elkins Peter Lanzavecchia CAMDEN Joseph H. McErlean Judith M. Krupnick (Alt.) CAPE MAY William Kindle Donald Gentilini (Alt.) CUMBERLAND John R. Lilliston Herb Schwartz (Alt.) ESSEX Linda Cummings George Liang GLOUCESTER Ronald E. Baus, Jr. Allen C. Eastlack, Sr. (Alt.) HUDSON Michael Di Feo Peter A. Sucato, Jr. (Alt.) HUNTERDON Laura Botsacos Leonard R. Datello (Alt.) MERCER Scott Haldeman Paul J. Muller, Jr. (Alt.) MIDDLESEX Richard Malouf, Jr. James Reydel MONMOUTH Susan Scarola John Marotta, Sr. Shelley I. LoCascio MORRIS Scott Barna William L. Strauss, III OCEAN Rob Sickel Taylor Weisleder (Alt.) PASSAIC Peter A. Spina Frank Esposito (Alt.) SALEM John Bobbitt Robert L. Davis (Alt.) SOMERSET David Ferraez John M. Kemper SUSSEX Timothy S. Allocca Engle Oostdyk (Alt.) UNION Mark Montenero James R. Haskell (Alt.) WARREN William Muller Vacancy (Alt.) A leader in the field of automotive franchise law, Wilentz, Goldman & Spitzer can effectively address your unique legal needs. • General counsel to NJCAR for over 35 years. • Successfully represented dealers in disputes with manufacturers for decades. • Drafted and helped pass virtually all of the state franchise protection laws. • Lectured and written extensively on dealer-manufacturer issues. Franchise Law | Commercial Transactions and Litigation | Environmental and Land Use Law | Securities Law | Tax Law | Corporate Banking and Antitrust Law | Labor Law and Employment Law | Bankruptcy and Creditors’ Rights Law | Real Estate Law | Trusts and Estates | Family Law | Personal Injury and Criminal Law For more information, please contact Marvin J. Brauth, Esq., via e-mail at mbrauth@wilentz.com or via telephone at 732.855.6084 90 Woodbridge Center Drive Woodbridge, NJ 07095 732.636.8000 Two Industrial Way West Eatontown, NJ 07724 732.542.4500 110 William Street New York, NY 10038 212.267.3091 Two Penn Center Plaza Philadelphia, PA 19102 215.940.4000 Serving NJCAR Members For 35 Years