What Car Dealers Need to Know About the DMV Release of Liability

•california dmv processes, dealer compliance requirements

The DMV Release of Liability is a form submitted to the Department of Motor Vehicles (DMV) by a vehicle owner that releases them from any future civil liability for things like traffic violations or accidents that may occur after the sale or transfer. The form must include the vehicle’s make and model, license plate number, vehicle identification number (VIN), […]

Surety Bonds for California Auto Dealers

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•dealer licensing process, dmv licensing requirements

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California vehicle dealerships need to get their financial house in order prior to entering the DMV’s licensing process. Per California law, a dealer bond serves as a protection for customers, protecting them from possible negligence or fraud claims against the dealership. Currently, car dealerships are required to carry a $50,000 bond before they can finalize […]

A PLAINTIFF’S ATTORNEY BECOMES A DEFENDANT: THE SADR LAW FIRM GETS HIT WITH $1.2M JUDGMENT

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•auto dealer documentation tips, dealer litigation awareness

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One of the largest consumer law firms in the state specializing in suing car dealerships under the Consumer Legal Remedies Act for selling vehicles with undisclosed “frame damage” was just hit with a judgment of $1.2 million after a trial in Los Angeles. Judge Jon R. Takasugi awarded the Plaintiff, Hawthorne Auto Market, Inc., $200,000 […]

Breach of Contract

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•dealer documentation guidelines, dealership contract transparency

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A breach of contract in a vehicle purchase agreement can occur when one or both parties fail to fulfill their obligations under the terms of an agreement. This can include issues such as non-payment, failure to deliver goods or services, and misrepresentation of facts. A claim for a breach of contract of a vehicle purchase […]

Failure to Disclose Vehicle History as a Prior Rental

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•dealer disclosure requirements, dealer recordkeeping

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Understanding the Consequences and Responsibilities in the Automotive Market One area that demands meticulous attention is the dealer disclosure of a vehicle’s history, particularly if it has been utilized as a prior rental. This article delves into the legal intricacies surrounding the failure to reveal such crucial information to prospective buyers, highlighting the potential consequences, […]

Considering Opening a Car Dealership? Here’s What You Need to Know.

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•dealer licensing process, new car dealer setup

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Before opening a car dealership in California, several legal considerations should be taken into account. These include obtaining the proper licenses and permits, complying with state and federal regulations related to the sale of vehicles, and ensuring that the dealership is in compliance with any zoning laws or regulations in the area where it will […]

Mileage Inconsistencies: When a Vehicle’s History Report Doesn’t Match Up

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•california auto dealer compliance, vehicle history reports

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As car buyers become increasingly savvy about the importance of vehicle history reports, a new question has emerged: should dealerships be responsible for reporting mileage discrepancies caused by third-party notations? This issue often pops up when dealers purchase cars at auction and notice conflicting mileage info on their reports. But who’s responsible for ensuring that […]

The Cars that get you addicted to driving electric

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Plug-in hybrids (PHEVs) are vehicles that have both an internal combustion engine and an electric motor, allowing them to run on both gasoline and electricity. While they may not be fully electric, they are still an important part of the electric revolution, as plug-in hybrids offer a range of benefits that can help accelerate the […]

Protect Your Dealership from False Verbal Misrepresentation Claims

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Dealers are being targeted. Across the country, attorneys are filing lawsuits over supposed verbal promises made during vehicle sales — even when there’s no written proof. These false verbal misrepresentation claims can cost dealers thousands in legal fees, wasted time, and damaged reputations. At Auto Legal Group (ALG), we’re helping dealerships fight back. In a […]

Wowwow…Dealer Wins Fees & Costs in Arbitration

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In a decisive victory against Auto Fraud Legal Center (Hawk Berry, Josh Green), Auto Legal Group (ALG) proved that a buyer’s claim of verbal misrepresentation was brought in bad faith. Not only was the case dismissed, but the dealer was also awarded its attorney’s fees and costs — a rare and powerful outcome in arbitration. […]