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Vol. 6  #5
 May 1, 2015
   

Pre-Sale Warranty Disclosures

 

        

     The FTC's recent investigation named Operation Ruse Control takes aim at auto dealer sales practices.  One area that could be the focus of a future FTC investigation is the disclosure of warranty terms and conditions.  

 

     Under the FTC's "Pre-Sale Availability Rule" dealers are required to make written warranties available to consumers prior to purchase.  This is accomplished by either:

  • Displaying physical copies of the warranty document(s) at every sales and F&I desk where consumers are likely to see them; or
  • By providing prominent posted notice of the warranty document's availability and providing the warranty document(s) to the consumer upon request.

This rule applies to all written manufacturer warranties on new and certified used vehicles and written warranties you extend to consumers such as the Used Car Lemon Law Warranty.

 

     For Internet sales you can meet the requirements of the law by using a clearly labeled hyperlink, in close proximity to the description of the warranted vehicle, such as "get warranty information here" to lead the consumer to the full text of the warranty.  For new car sales dealers should contact their manufacturer representatives to ensure that the dealer's website includes access to the factory warranty documents and that any hyperlinks provide consumers with access to the proper warranty documents.  For used car sales the hyperlink should take consumers directly to the dealer's Used Car Lemon Law Warranty terms and conditions.   

 

     For more information please contact Stevan LaBonte at 516-280-8580.

  

DOL REDEFINES "SPOUSE"

UNDER FMLA 

 
    

     The U.S. Department of Labor (DOL) recently revised the definition of spouse under the federal Family and Medical Leave Act (FMLA).  The new rule amends the definition of spouse under the FMLA so that eligible employees in legal same-sex marriages will be able to take FMLA leave to care for their spouse or family member.  

     

     The FMLA entitles eligible employees of businesses with more than 50 employees to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.  Under the FMLA eligible employees are entitled to:

 

Twelve workweeks of leave in a 12-month period for:

  • the birth of a child and to care for the newborn child within one year of birth;
  • the placement with the employee of a child for adoption or foster care and to care for the newly placed child within one year of placement;
  • to care for the employee's spouse, child, or parent who has a serious health condition;
  • a serious health condition that makes the employee unable to perform the essential functions of his or her job;
  • any qualifying necessity arising out of the fact that the employee's spouse, son, daughter, or parent is a covered military member on "covered active duty;" or

Twenty-six workweeks of leave during a single 12-month period to:

  • care for a covered service member with a serious injury or illness if the eligible employee is the service member's spouse, son, daughter, parent, or next of kin (military caregiver leave).

     As of March 27, 2015, the rules under the FMLA apply equally to those employees who claim a legal same-sex, common law, or foreign-celebrated marriage (if potentially valid under any state law).  The validity of the marriage is based on the law of the place of celebration, not the law where the employee resides or where the employer is located. 


     All leave policies should be revised to accommodate the new definitions under the FMLA.  If you have any questions about the FMLA or need a leave of absence policy or a complete employee handbook please contact Stevan LaBonte at 516-280-8580. 
Should you have any questions or need advice on anything related to the dealership please do not hesitate to give me a call or send me an e-mail.  Your questions will be answered promptly!!!

Sincerely,

Stevan LaBonte

Stevan H. LaBonte, Esq.
LaBonte Law Group, PLLC
100 Ring Road West, Ste. 108
Garden City, NY 11530
 
516-280-8580 (Phone)
631-579-6462 (Phone) 
631-794-2434 (Fax)