New Jersey Lemon Law Lawyer Blog

It is not uncommon that there is absolutely no disclosure to the sales staff and they are not even given what is commonly known as a deal recap or some sort of washout sheet. It is not uncommon that the sales staff is completely left in the dark pertaining to how their commissions are calculated, what the costs are, what the charge backs are and other reductions in the gross commissionable proceeds. The same laws that apply to contracts apply to agreements between sales staff and their management team. There is an obligation of good faith and fair dealings and there is an obligation pertaining to full disclosure. I have discovered that it is not uncommon that there are various “extras” that the dealership management feels obligated to put into the costs of the vehicle which a sales staff might be upset about an have a valid legal claim.

The auto sales business is a major tax source for all states including Jersey. In this regard, many states have hundreds if not thousands of dealerships which generate billions of dollars in tax revenue for state coffers. All these dealerships rely upon the skills of sales people to sell cars in order to benefit themselves as well as the state economy. It is an ongoing battle between the sales persons and management pertaining to the issuance and calculation of gross commissionable proceeds upon which sales people are paid.

Generally, there are two areas of profit to the dealership.

The front end and the back end. The front end is associated with the profit on the sale of the car and of itself. The back end profit pertains to and relates to the profit on financing, after sale items, pre-delivery services and other items such as low jack. Car dealerships operate differently, however, generally, the sales people get paid on the front end and the managers and the upper management get paid on the back end of the transaction. On occasion, a car dealership does provide a certain amount of computation to the sales staff based on the total profit of the dealership which would naturally include the back end or the reserve part of the transaction.

CARTON AND RUDNICK LITIGATES THESE CLAIMS.

WHAT DID TOYOTA KNOW ?

The USA Today has an interesting report that NHTSA was notified by an insurance company, State Farm, of possible defects.

State Farm said it "has received numerous inquiries about alleged unwanted acceleration problems in Toyota and Lexus vehicles in recent years."

State Farm told the governmental agency that it had seen an increase in the acceleration problems in some vehicles, Toyota and Lexus Models.

If you have an questions about the legal implication feel free to call Carton and Rudnick to have you questions answered