Classic Puffery or Illegal Misrepresentation?

Auto Dealer Law

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 …

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NADA Urges Dealerships to Get a Lawyer: FTC’s “Operation Steer Clear” is a Wake-Up Call for Auto Dealership Advertising

Auto Dealer Law

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…

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License To Sell – Quick Facts about Licensure in Iowa

Auto Dealer Law

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…

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Defining Good Faith in Iowa Automotive Franchise Law

Auto Dealer 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…

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Attention Business Owners: You May be Eligible for the New Iowa Tax Credit!

Auto Dealer Law

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 …

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Factory Facilities Programs: NADA Report Phase 2 in Summary

Auto Dealer Law

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…

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Iowa Supreme Court Defines “Oppression:” Lessons for Closely Held Corporations—Including Auto Dealers

Auto Dealer Law

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…

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Two-Tier Pricing Hidden by Incentives

Auto Dealer Law

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…

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Hard Market Creates Insurance Concerns

Auto Dealer Law

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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Written by James H. Arenson

Last Updated : February 13, 2024