Page 7 - MIADA-Q4-2021

and later moved for summary judgment arbitration of the buyer›s individual claim assignee of the RIC answered the buyer’s
on its deficiency claim and the buyer›s by answering his counterclaim and then counterclaim and moved for summary
counterclaim. Thereafter, the buyer moved moving for summary judgment, actions judgment. The court ruled that the assignee
for leave to amend his counterclaim to that the appellate court found were waived its right to compel arbitration and
specify the alleged violations of the UCC «inconsistent with an intent to arbitrate.» that its actions were inconsistent with the
and to convert the counterclaim into a class The appellate court also found that even if parties’ earlier intention to arbitrate claims.
action. The trial court denied the assignee›s the assignee sought to compel arbitration If you haven’t done so, it’s time to review the
summary judgment motion and granted of the amended class action counterclaim, arbitration agreement you’re using (you do
the buyer›s motion for leave to amend. it could not do so based on the wording of have an arbitration agreement or provision,
The assignee moved to compel arbitration the arbitration agreement that class action right?) and compare those to your actual
of the buyer›s individual counterclaim and claims are not arbitrable. See Financial practices. n
to dismiss the class allegations based on an Center First Credit Union v. Rivera, 2021
arbitration agreement in the RIC. The trial Ind. App. LEXIS 345 (Ind. App. November Eric (ejohnson@hudco.com) is a Partner in
court denied the assignee›s motion, and 9, 2021). the law firm of Hudson Cook, LLP, Editor
the Court of Appeals of Indiana affirmed. in Chief of CounselorLibrary.com’s Spot
The RIC›s arbitration agreement provided COMPLIANCE TIP Delivery®, a monthly legal newsletter for auto
that either party could choose to have Our Case of the Month highlights how dealers and a contributing author to the F&I
any dispute between them decided by having an arbitration agreement in a RIC is Legal Desk Book. For information, visit www.
arbitration and that the claim would be not enough to secure arbitration of claims counselorlibrary.com. ©CounselorLibrary.
arbitrated on an individual basis and not rather than litigation. It’s equally important com 2021, all rights reserved. Single
on a class basis. The appellate court found to look at your actions when dealing with a publication rights only to the Association.
that the assignee waived its right to compel lawsuit or counterclaim. In this case, the HC# 4882-3023-3349

Data Shows Dealer Sales Activity Healthier When

They Keep Ad Budgets Intact

By Lauren Donalson, Senior Director of National Accounts at PureCars
Although the pandemic was still a industry observers look at the trends of PureCars dealership advertising spending
major force in the world, the automotive dealers who cut off ad spending compared data from September. The main difference
industry entered 2021 having rebounded with those that did not. Simply put, the in philosophy is what limited the drop off in
from the earliest days of the shutdowns. If data suggests dealers who continued sales performance. Dealers who pulled back
anything, automotive brands and dealers to spend on ad strategies grew their in advertising looked at their showroom
found themselves having to address a lack market share, and those who cut their ad traffic in relation to lower inventory levels
of inventory, not a lack of demand from spending lost sales. This data insight also and thought there was no need to promote
shoppers. Automotive marketers all over includes ad spending strategies this past deals on new cars and trucks.
the U.S. have continuously reevaluated summer that may have been altered as a
strategies for 2021 ad budgets. Some result of the ongoing microchip shortage However, savvy dealers looked at this
retailers followed the belief that they that saw fewer new cars and trucks hitting past summer as an opportunity to make
should pull back on advertising since they dealer lots. varying levels of budget increases in their
weren’t worried about promoting vehicles spending. What’s more, they realized
when there is a lack of inventory. Reduced ad budgets equal larger sales promoting vehicles that may or may not
drop-off be on the lot was not the right thing for
However, this has proven to cause deeper Unfortunately for those dealers who their customers. Instead, they modified
problems toward long-term customer pulled back on ad spending, they ended their advertising messages and instead
relationships and loyalty. If anything, up feeling more pain in overall sales drop- focused on promoting vehicle buy-back
those dealers who wisely shifted their off compared with dealers who modified opportunities to increase inventory, and
advertising message have fared better advertising messages and strategies and they also promoted service and repair
than those who pulled their advertising increased budgets. For example, between options to boost revenue further.
altogether. the months of March and August earlier
this year, dealers who decreased their When customers come in for service
What we’ve learned through the pandemic advertising spending between 50% and and repair it gives dealers and their staff
It is true, hindsight is certainly 20/20. With 89% saw their sales volume drop by 28%. an excellent chance to discuss buy-back
months of inventory shortage history However, those dealers who actually options with customers who give strong
now in the rearview mirror, there is a lot increased their advertising spend by just 9% consideration to increased trade value
that can be gleaned from understanding during the same time period saw a much and a discussion on other inventory on
dealer ad spend patterns, especially when lighter drop in sales at just 9%, according to the lot. n

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