At Charapp & Weiss, we understand that dealerships face legal risks from all directions—some expected, some not. Let’s dive into three growing areas of concern: attorney communications, trade title complications, and I-9 compliance. Here’s what your team should be doing right now to stay protected.
Watch Out for “Attorney” Calls
Not every complaint comes directly from a customer. Sometimes, the first sign of trouble is a phone call from someone claiming to be their attorney. Dealership staff should never engage in negotiations over the phone with someone claiming to be legal counsel. Your policy should be clear: all communications from attorneys must be in writing on official letterhead.
Once you receive an actual attorney letter, don’t assume everything in it is accurate. Some common misconceptions include claims that federal law gives employees access to personnel files or mandates a written explanation for termination—neither is true. Your dealership may choose to respond directly or with the guidance of legal counsel, but be cautious. Some demands are bluffs meant to pressure a quick resolution.
If your dealership is ever served with a legal complaint, make sure only authorized personnel accept service—and immediately forward it to your legal team. Improper handling can create unnecessary complications.
Don’t Get Stuck With a Bad Trade Title
It’s happening more often: a customer trades in a vehicle, but weeks later you discover the title is co-owned by a spouse or sibling who refuses to sign it. Now you’re stuck with a used vehicle you can’t legally resell.
This is why it’s critical to verify trade ownership before finalizing the deal. Ask to see the owner’s card or use your state’s registration system to confirm who holds the title. Even more important, don’t title the vehicle you’re selling until the trade-in title is secure. If the trade falls through, you may be able to rescind the deal—unless you’ve already transferred title, which limits your options.
Time to Revisit Your I-9 Compliance
With increased enforcement and changing regulations, it’s essential to ensure your employment eligibility verification procedures are up to date. Every new hire must complete a Form I-9. Employers must verify identity and work authorization within three business days of the hire and retain the documentation for the required period—either three years after hire or one year after termination, whichever is longer.
Keep your I-9s organized and separate from personnel files so they can be easily accessed during an audit. If you find missing or incomplete forms, address the issue promptly and document your corrections. It’s also smart to assign a designated point person to oversee your I-9 process and conduct periodic internal audits.
Stay Proactive, Stay Protected
Legal exposure can come from many directions—an overlooked document, a title issue, or an unexpected letter from an attorney. But with the right procedures in place, your dealership can minimize risk and maintain control.
If you have questions or need guidance on handling legal threats or compliance issues, contact Charapp & Weiss. We’re here to help dealerships stay ahead of the curve.
