Pub. 13 2014-2015 Issue 1

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 3 new jersey auto retailer W W W . N J C A R . O R G ©2014 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. PUBLISHED BY THE NEWSLINK GROUP, LLC 855.747.4003 CONTENTS I I I I new jersey auto retailer W W W . N J C A R . O R G 2013 New Jersey Coalition of Auto otive Retailers | the newsLINK Group, LLC. All rights reserved. The New Jersey Auto Retailer is published four ti es each year by the newsLINK Group, LLC for the New Jersey Coalition of Auto otive Retailers and is the of  cial publication for this association. The infor ation contained in this publication is intended to provide general infor ation 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 reco ended that you contact an attorney as to your speci  c circu stances. The state ents 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 Auto otive Retailers, its board of directors, or the publisher. Likewise, the appearance of advertise ents within this publication does not constitute an endorse ent or reco endation of any product or service advertised. The New Jersey Auto Retailer is a collective work and as such so e articles are submitted by authors that are independent of the New Jersey Coalition of Auto otive Retailers. While the New Jersey Auto Retailer encourages a  rst 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. PUBLISHED BY THE NEWSLINK GROUP, LLC 855.747.4003 MEMBERS OF THE NJ CAR BOARD OF TRUSTEES 201 4 -201 5 COUNTY TRUSTEES Eric Nielsen.................................................................................................................. Chairman John Manganelli.................................................................................................. Vice Chairman Lawrence W. Kull......................................................................................................... Secretary Richard A. DeSilva, Jr................................................................................................... Treasurer Scott R. Senior ................................................. Regional Vice President (Northern Region I) Leonard R. Datello .......................................... Regional Vice President (Northern Region II) Robert J. Larson..................................................... Regional Vice President (Central Region) Michael Elkins .................................................... Regional Vice President (Southern Region) Mark Pellegrino ............................................................................................ Budget Chairman Edward J. Barlow, Jr ...................................................... NJ CAR Insurance Co. Ltd. Chairman CharlesMiller .................................................................... 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 Roy Greenblatt William Kassner (Alt.) BERGEN Jorge Barraque’ Robert Engel Brian Lamb BURLINGTON James McCormick Peter Lanzavecchia CAMDEN Joseph H. McErlean Thomas J. Hessert, Jr. (Alt.) CAPE MAY Williams Kindle Dennis Egan (Alt.) CUMBERLAND John R. Lilliston Herb Schwartz (Alt.) ESSEX George Liang Guy Johnson (Alt.) GLOUCESTER Tina Wright Ronald E. Baus, Jr. (Alt.) HUDSON Michael Di Feo Peter A. Sucato, Jr. (Alt.) HUNTERDON Breanna N. Datello Steven Kalafer (Alt.) MERCER Scott Haldeman Paul J. Muller, Jr. (Alt.) MIDDLESEX John F. Chuhinko James Reydel MONMOUTH Lawrence Iannacone Jeffrey R. Wall Anton Semprivivo Leon Lee MORRIS Barbara Beyer Judith A. Schumacher-Tilton OCEAN Rob Sickel Taylor Weisleder (Alt.) PASSAIC Renee P. McGuire Frank Esposito (Alt.) SALEM Robert L. Davis Ben Catanese (Alt.) SOMERSET John M. Kemper David J. Long SUSSEX Timothy S. Allocca Engle Oostdyk (Alt.) UNION Sam X. DiFeo James R. Haskell (Alt.) WARREN Edward J. Rossi John C. Smith (Alt.) 4 Chairman’s Message ERIC NIELSEN 5 President’s Message JAMES B. APPLETON 7 NADA Director’s Message MARCY H. MAGUIRE 13 When the Factory Demands Costly Dealer Investments, Franchised Dealers in New Jersey Have Considerable Rights ERIC L. CHASE, ESQ. 16 How Thirty-Four Words May Make a Difference ALAN E. DAVIS, ESQ. AND CHRISTOPHER J. LEDOUX, ESQ. 20 You Do Not Have to Submit to Unreasonable Demands to Relocate or Re-Brand Your Dealership MARVIN J. BRAUTH, ESQ. 24 While Franchisors May Try, They Cannot Use Unreasonable Calculations of Your Performance to Penalize You MARVIN J. BRAUTH, ESQ. 27 Dealers Have the Right to Prompt Warranty Reimbursement and Incentive Payments PATRICK F. COX, ESQ. 31 Factory, If You Like “Site Control” You Can Keep It...Provided You Pay for It THEODORE “TED” SCHILLER, ESQ. THOMAS G. RUSSOMANO, ESQ. 4 Chairman’s Message ERIC NIELSEN 5 President’s Message JAMES B. APPLETON 7 NADA Director’s Message MARCY H. MAGUIRE 14 The Franchise Practices Act Has Caused Major Changes to the Dealer-Manufacturer Landscape (But More Are Still Needed) MARVIN J. BRAUTH, ESQ. 18 Why Independent Dealership Ownership is Key to Consumer Protection ROBERT W. CAMPBELL 22 How (and Why) the Franchise System Wa Developed 24 The Benefits of an Independent Dealer Network MARYANN KELLER 26 Auto Dealers Provide an Extra Layer of Accountability PETER WELCH, PRESIDENT, NADA . . . . .. .. .. .. . . .. i li . .. .. .. .. .. . .. Vice C i . l .. .. .. .. .. .. .. .. .. r t i . ilva, Jr . ... .. .. .. .. ... ... .... Tr i r ... ... .. .. Regional Vice President (Northern R i I . t lo . ... ... . Regional Vice President (Northern Re i II r . ... ... ... ... Regional Vice President (Central i i l i ... ... ... .... Regional Vice President (Souther i l ri ... ... ... ... .... .... ... ... Budget C ir rl , Jr ... ... .... .... NJ CAR Insurance Co. Ltd. C ir i ler ... .... ... .... .... .... .. NJ CAR Services, Inc. President la .... .... .... .... .... .... Truck Com it e C ir . r , II ..... ..... ..... .... .... .... .. CAR-PAC Pr i ir ... ..... ..... .... .... ..... NADA Director for Ne J r l t ... ..... ..... ..... ..... ...... ..... ..... ..... Pr i