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 24 25 new jersey auto retailer W W W . N J C A R . O R G new jersey auto retailer · Complete Hiring Process · On-Board Processing · Wage and Hour Compliance · Recordkeeping Compliance and System Development · Labor Relations Negotiations and Strategies · Compensation Planning and Analysis · Employee Appraisal Systems · Employee Training · Turnover Monitoring · Employee Opinion Surveys · Benefits Cost Analysis Let our 20 years of automotive experience work for you. Our HR services ensure compliance, consistent practices and reduced exposure and liability – which allows you to focus on business! Call 610.233.8244 and schedule a free consultation today! STRATEGIC PARTNERS FOR: www.autohrsolutions.com Your On-Call HR Director DEALER BEWARE  continued from page 23 WE CAN HELP. CALL TODAY, FOR A FREE CONSULTATION. (973)790-8800 Alan E. Ginsberg, CPA Sal DiBello, CPA aginsberg@brunodibello.com www.brunodibello.com In a JAM when it comes to taxes? RELIABILITY • QUALITY • PERFORMANCE AUTOMOTIVE TAX SPECIALISTS The risky downside of signing, however, is that, by concurring in a formal written agreement with the franchisor that the dealership is materially out of compliance with contractual requirements, the stage may be set for a subsequent serious threat of termination or nonrenewal for good cause, pursuant to New Jersey law. Think about it. You sign a document admitting a breach or multiple breaches, and you admit the seriousness of the breach(es). Al- though you can later dispute the factory’s assertions in its notice of termination or nonrenewal, your signature on what amounts to a confession will put you at a distinct disadvantage. The pressures to sign can be intense. There may be repeated visits; there may be letters laying out the case that sales performance is unacceptable, and/or that departments of the dealership are signifi- cantly below square footage guides. You may literally be bar- raged with language that is offensive in tone and substance. What should the dealer do? Although this is a serious question that should be considered in depth, here are some best practice points to consider: • Resist the pressure; • Don’t sign an ag reement admit t i ng an ongoi ng breach; • In general, don’t take on expense or greater legal burdens without (a) rea sonable a n d v a l u a b l e consideration, and (b) a practical way to comply; • Don’t agree to above-average pe r formance a s a mi n imum acceptable benchmark; • Always respond in writing to unreasonable factory demands or requests, using civil language and mak ing reasonable counter- arguments. For certain, respond responsibly in writing to any threat of termination or nonrenewal. Of course, this brief overview is not legal advice. Your particular situation will have unique facts and circumstances. This is one of those instances where you should seek legal advice. Eric L. Chase is a partner in the law firm of Bressler, Amery & Ross, P.C. and he can be reached at 973-514-1200. He writes and speaks frequently on matters of importance to automotive retailers and is author of Automobile Dealers & The Law: The Businessman’s Desk Manual for Survival.