PAYPLAN LITIGATION AND PAYPLAN CLAIMS (PART II)

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. There is a natural tendency upon the sales staff to doubt the costs associated with the sale of the automobiles. If the pack is only $500, why did an apparent $3,000 profit vanish overnight and turn into a $100 flat fee?

This is an area of heated and ongoing litigation between sales staff and dealership management. How exactly are the gross commission on profits calculated, charge accounted for and disclosed to the sales staff? 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 [tail 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 for which a sales staff member might be upset.