Pub. 4 Issue 1

[Reference: 49 U.S.C. § 30102(a)(2)] Once NHTSA and/or the automaker determine that a vehicle fails to comply with the FMVSS or contains a safety-related defect, NHTSA and/or the manufacturer may launch the recall. Once this decision is made, the wheels are put into motion: recall remedies are developed, franchised dealers are trained to perform the repairs, and registered owners of the vehicles are contacted using records in state DMV databases. As just about every franchised new car dealer has seen recently, these events do not always occur in the above-described order. [Reference: 49 U.S.C. Part 301] Vehicle recalls trigger several different legal and policy implications for dealers, as described below. New Vehicles Under the federal Motor Vehicle Safety Act, new vehicles that are subject to a safety recall cannot be delivered until the defect is corrected. (While federal law contains no prohibition against advertising such vehicles, some state laws, such as those in California, prohibit advertising vehicles not actually for sale, and/or separately require that an advertisement must be withdrawn within 48 hours of withdrawing a vehicle from sale). [Reference: 49 U.S.C. §§ 30101 et seq.; 30120(i); 49 C.F.R. Parts 567, 571, and 573.11; California Vehicle Code §§ 11713(b); 11713(c); 11713(i); 24000, et seq.]  ROCKY RECALL — continued on page 18 Auto dealers often must draw the line: in court, with employees and unions, and with competitors. As one of the largest labor and employment firms, Fisher Phillips has the experience and tenacity to help you get the results you need. That’s why some of the savviest employers come to us to handle their toughest workplace issues. FISHER PHILLIPS. WHEN YOU HAVE TO DRAW A LINE IN THE SAND. 444 South Flower Street • Suite 1500 • Los Angeles, CA 90071 213.330.4500 • fisherphillips.com