Pub. 2 Issue 1

20 www.glancda.org For over 40 years we have been committed to our dealer clients providing them with the highest quality tax, accounting, consulting, and management support services in a timely, responsive manner. With several years of dealership experience at the shareholder level, our firm’s pro-active outlook, our business management and strategic- planning expertise, and our focus on the importance of tangible results ensures that you have a partner on your team that will help you optimize your business operations, minimize exposure to taxes, and assist you with estate planning and dealer succession opportunities. Let us be part of your team and see how we can make a difference. Your Success... Is Our Success Dale E. Duncan, CPA Shareholder (626) 858-5100, ext. 226 dduncan@rogersclem.com George R. Applebaum, CPA Shareholder (626) 858-5100, ext. 215 gapplebaum@rogersclem.com Scott M. Biehl, CPA Shareholder (626) 858-5100, ext. 229 sbiehl@rogersclem.com Andy R. Jones, CPA Shareholder (626) 858-5100, ext. 237 ajones@rogersclem.com 1067 Park View Drive | Covina, CA 91724 | (626) 858-5100 | Fax (626) 332-7012 E ach year, millions of vehicles become subject to safety recalls. A relatively small percentage of these recalls involve “stop operation” or “stop sale” notices. The following illustrates potential steps to take based on the safety recall at issue and the vehicles involved:     For new vehicles in inventory or in transit: Once any notice of an outstanding safety recall is received, federal law pro- hibits the delivery of impacted new vehicles until the recall is remedied.  For used vehicles in for service, in inventory, or coming into inventory that are of the same make as the dealer sells new: Federal law neither imposes an obligation on dealer- ships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls. However, it is recommended that used vehicles of the same make a dealer sells new be checked for outstanding, un- remedied recalls (safety or emissions) since the dealership is authorized to do service or repair work involved. Important: if and when a dealership receives a recall notice indicating that certain used vehicles should not be operated and/or re- sold, they should not be operated or resold until the recall is remedied. For used vehicles in for service, in inventory, or coming into inventory that are not of a make the dealer sells new:  Again, Federal law neither imposes an obligation on dealerships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls.  In addition, state law may impose additional obligations.  For example, additional obligations are likely to be imposed if and when a dealership employee knows that a particular “off- brand” used vehicle is subject to an outstanding, unremedied safety recall involving a notice stating that it should not be operated and/or resold. For clarification regarding state law obligations, dealerships should contact their legal advisor. Further information on safety recalls is available from OEM policy and procedure documents and from http://www.nhtsa. gov/Vehicle+Safety/Recalls+&+Defects.  Safety Recalls BY MARK CARPELLI, CHAIRMAN, REGULATORY AFFAIRS COMMITTEE