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 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 S U M M E R 2 0 1 2 20 21 new jersey auto retailer W W W . N J C A R . O R G new jersey auto retailer Since the manufacturer’s 60-day deadline for approving a buyer did not start until a completed application was submitted, this became extremely problematic. Now, if the manufacturer does not request additional information within 15 days of its receipt of the application, the application is effectively deemed completed. If additional information is requested and the information is sub- mitted within 30 days of the request, the 60-day deadline is not extended. In our handling of buy/sells, we routinely monitor the application process. With the new law, we now ultimately send a letter to the manufacturer after the 15th day to confirm that the application is deemed completed under the new law. This has assisted in expediting buy-sell closings. Under the old law, it was unclear whether a dealer who was subject to a termination had the right to sell his dealership or franchise. This is now clearly established under the new law. I have already been involved in such a case involving a domestic dealer under termination. A buy-sell was signed during the lawsuit proceedings and has been submitted to the manufacturer and is now being processed. There is no question that such a buy-sell would have likely been rejected under the old law. Needless to say, the manufac- turers and their legal counsel have not been enthralled by the amendments. While, on the surface, they will purport to comply with the new rules, in my experience, they are imple- menting their usual efforts to avert their legal responsibili- ties. A prime example of this, which I have seen in actual deals handled by my office, are ef- forts to induce the buyer to accept approval conditions that are in conflict with the new legal constraints. In this regard, they seek to establish that the buyer’s acceptance of the requirements is voluntary. They also try to include some monetary consideration (e.g., facility money) in order to establish that they have provided the buyer with a separate and valuable consideration to agreeing to the new conditions (e.g., facility upgrade). In some of the in- stances that I have seen, this consideration is grossly inadequate. Obviously, the factories will continue in their inimitable ways. However, with the new rules now in place, dealers and buyers alike now have a much stronger arsenal at their disposal. Mr. Aboyoun is the founding member of Aboyoun & Heller, L.L.C. He has specialized in automotive buy/sell transactions and automotive franchise issues for well over 30 years $ HOCKED by Your Electric Bill? LOWER Your Utility Bills THE SMART WAY Call Klaudet Ristovski for a quote today 732-440-0006 Fax or email utility bills to FAX# 732-518-5207 kristovski@mmenergy.com NJ CAR members receive FREEENERGYQUOTES Impact on Buy-Sells  continued from page 19 The manufacturers and their legal counsel have not been enthralled by the amendments.