Pub. 3 2014-2015 Issue 1

10 San Diego Dealer Sunroad Auto Group San Diego, CA Mossy Automotive San Diego, CA Drew Ford La Mesa, CA John Hine Mazda San Diego, CA Lexus Escondido Escondido, CA Marvin Brown Cadillac San Diego, CA Select San Diego Partners 1.800.976.WASH | broadwayequipment.com Trusted manufacturer of the nest car washing and polishing equipment since 1977. Call or click to discover why hundreds of dealers nationwide are using our equipment in their service departments everyday. Endorsed by all OE manufacturers NCDA Associate Member JIM SNOOK jim@broadwayequipment.com THE CALIFORNIA DEALER’S CAR WASH CHOICE Export Chargebacks – Know Your Rights By Monica Baumann, mbaumann@cncda.org CNCDA Director of Legal & Regulatory Affairs O ver the past several years factories have taken an aggressive approach to penalizing dealers when vehicles those dealers sell or lease are exported, regardless of whether the dealers knew or should have suspected that the vehicle would be exported. In response, CNCDA sponsored legislation in 2013 that provides dealers some protection from this unfair practice. Vehicle Code section 111713.3(y) prohibits factories from taking or threatening an adverse action – such as chargebacks – against a dealer that sells or leases a vehicle to a customer unless: 1. The factory provides a written copy of its export or sale-for-resale prohibition policy to the dealer; AND 2. The dealer knows or reasonably should have known at the time of sale or lease that the customer intended to export or resell the vehicle. In addition, the law presumes that the dealer did not have reason to know the exporter’s intent if they register the vehicle in the United States and collect California sales or use tax. These new protections are now over half-a-year old, but it appears that some factories have done little to change their aggressive tactics against dealers. If you receive a communication or demand from a factory regarding export prevention, contact CNCDA or competent counsel to see what legal protections may apply to your situation.