Classic Puffery or Illegal Misrepresentation?
Puffery: advertising copy that indulges in subjective exaggeration in its descriptions of a product or service, such as “an outstanding piece of luggage.” Puffery is always a matter of opinion on the part of the advertiser and often will use …
Read MoreNADA Urges Dealerships to Get a Lawyer: FTC’s “Operation Steer Clear” is a Wake-Up Call for Auto Dealership Advertising
The Federal Trade Commission (FTC) was established to be a watchdog against businesses that may not have consumer-friendly business practices. In particular, it attempts to corral businesses that may not be entirely truthful or are misleading the ave…
Read MoreLicense To Sell – Quick Facts about Licensure in Iowa
Every automotive dealership in Iowa is required to be licensed by the Iowa Department of Transportation (DOT). Anyone that sells more than six (6) motor vehicles within twelve (12) months may be presumed to be engaged in the business and should be li…
Read MoreDefining Good Faith in Iowa Automotive Franchise Law
In 2010, the Iowa legislature passed S.F. 2234, which added a new section to the Iowa Motor Vehicle Franchisers law (Iowa Code § 322A.18) (the “Act”) regarding a duty of good faith. The new section says: “A franchise imposes on the party a dut…
Read MoreAttention Business Owners: You May be Eligible for the New Iowa Tax Credit!
The Iowa legislature recently enacted the Business Property Tax Credit. The credit will allow commercial-property owners to cut down on the property taxes in 2013 that will be payable in the fall of 2014 or the spring of 2015. This credit will apply …
Read MoreFactory Facilities Programs: NADA Report Phase 2 in Summary
NADA recently completed its research project regarding factory facilities programs, and, using a case study approach, it reconfirmed many of the findings of Phase 1. However, Phase 2 also focused on “the dealership of the future.” It outlined the…
Read MoreIowa Supreme Court Defines “Oppression:” Lessons for Closely Held Corporations—Including Auto Dealers
Under Iowa law, a court can order the dissolution of a corporation if the minority shareholder can prove oppression. If the company dissolves, the minority shareholder will receive their appropriate share of the company’s assets. In addition, the I…
Read MoreTwo-Tier Pricing Hidden by Incentives
The Program: Over the last decade, manufacturers have attempted to standardize each customer’s buying experience by requiring consistent brand imaging for dealerships. Thanks to favorable franchise laws in Iowa, manufacturers generally can…
Read MoreHard Market Creates Insurance Concerns
Due in large part to the many natural disasters in the past several years, the insurance industry has shifted from a soft market to a hard market. Generally, a soft market provides wider coverage, lower premiums, and lower credit standards. Today’s…
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