McNees Auto Dealer Law Blog

Latest from McNees Auto Dealer Law Blog

Just completed your estate planning?  Let’s be sure.  You have a Will?  Super.  Powers of Attorney?  Terrific.  Living Will?  Excellent.  Now, have you checked the designations on your retirement plan?  Life insurance?  Health Savings Accounts? While a Will remains a critical part of an estate plan, it doesn’t get the whole job done for most modern estates.  For dealership owners, executives, and managers, a retirement plan (an IRA, 401(k) or the like) likely represents significant…
With the current administration, we have continued to see an evolution of less enforcement at the Consumer Financial Protection Bureau.  Cheers for this change should be kept in check because it may be causing state enforcement agencies to be more active in consumer financing areas.  Previously, there was collaboration between the CFPB and state agencies; that has not been true in this administration.  Rather, states are now leading their own initiatives. The PA Office of…
New audit rules put into place by the Internal Revenue Service (the “IRS”) at the beginning of this year will have an impact on tax partnerships which may have significant ramifications for some dealers. Historically, many dealers put their dealership and real estate assets into entities that are taxed as “pass through” entities for tax purposes. The S corporation was the preferred form for the dealership entity, and limited partnerships were used for holding real…
Governor Wolf recently signed Act 59 of 2018 which amends the Pennsylvania Board of Vehicles Act (“BOVA”). The amendments to BOVA are effective on August 27, 2018 and significantly enhance the protections provided to Pennsylvania new car and truck dealers. The significant enhancements to BOVA are outlined below and continue to help level the playing field between new car and truck dealers and their manufacturers. Vehicle Recalls. Act 59 provides compensation to dealers in the…
Having recently advised clients in commercial transactions where one or more parties lacked legal capacity, we were reminded of the essential role of Durable General Powers of Attorney in an estate plan. Though none of us wants to think about ourselves or our older family members losing mental capacity, we have to accept that it does happen. When the family matriarch can no longer make sound business decisions she needs to rely on a substitute…
Surely, a vehicle dealership cannot imagine functioning without its inspection licenses. Yet, in the past year I have seen dozens of state inspection licenses (safety and emission) have suspensions imposed for sticker security concerns. Part of the reason this happens is because a first violation of inspection sticker security is a warning, so often it is not seen as a serious threat to a license. However, when that second violation occurs, the penalty is a…