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Greater New York Automobile Dealers Association The Newsletter • July 20081

IN THIS ISSUE...

2008 Convention Gala . . . . . 2

Annual Meeting . . . . . . . . . . 3

New Officers and Board. . . . 3

DMV InspectorsHunting Dynos . . . . . . . . . . . 4

Dealers Ask . . . . . . . . . . . . . 4

Commission PayPlans Update . . . . . . . . . . . . 5

Summer Survival Tips . . . . . 6

Consignment Update . . . . . . 6

Dealer andTransporter Plates . . . . . . . . 7

Condolences . . . . . . . . . . . . 7

New Membership Director. . 8

Red Flag Rules . . . . . . . . . . 8

Employment Corner . . . . . . . 8

At first look, GNYADA Chairman and ManhattanMotorcars Dealer Principal Brian Miller has one of themost glamorous jobs in the world. Who wouldn’t like tosell Lamborghini, Rolls Royce, Bentley, Porsche, andLotus cars to the rich and famous?

However, like all dealers, Miller has to contend with awide range of issues, from EPA mandates to changinglegislation and employee relations. But he believes “astrong, empowered trade association can reduce thepressure on dealers,” allowing them to get on with thebusiness of selling and servicing vehicles.

Miller became a GNYADA director in 1999. Over thepast nine years, he has been actively involved inGNYADA’s Employee Relations, Activities, GovernmentRelations, and Auto Show Committees. He has been

Chairman of the Public Relations Committee since 2004, the same year he wasnominated to the Association’s Executive Committee.

Miller started his career in the auto industry in 1984 selling cars at his father’s Porscheand Audi dealership. He quickly became one of the top 25 salesmen in the nation for thetwo brands; a position he held for four years in a row. Brian became general manager of

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Brian Miller Named GNYADA Chair

Franchise Bill Unanimously Passedin Legislature

GNYADA’s landmark legislation,amending the New York MotorVehicle Dealers Franchise Act(Franchise Law) passed unanimouslyin late June – 61 to 0 in the Senateand 122 to 0 in the Assembly.

The next step is to get GovernorPaterson’s approval for the bill.GNYADA is participating in a letter-writing campaign to urge theGovernor to support this importantlegislation. If you would like to add

your voice to the effort, contact StuartRosenthal at 718.746.5900.

The legislation makes more than 25improvements to existing law,including adoption of streamlinedwarranty reimbursement procedures,limiting audits and charge-backs,creating (for the first time in NewYork) Relevant Market Areas toprotect dealers’ investments, andimposing limits on manufacturers’modifications to franchise agreements.

The Franchise Bill addresses:• Unreasonable denials of relocation• New restrictions on factory denials.• Factory interference with your

inventory financing – morelimited than ever before.

• Facility improvements ascondition for renewal – moretightly restricted.

• Reimbursements for loaner cars –required when the factory requiresloaners.

continued on page 6

For Dealer Principals / General Managers / Sales Managers

The NewsletterA Publication of Greater New York Automobile Dealers AssociationVolume 18, Issue 6 JULY 2008

continued on page 4

Greater New York Automobile Dealers Association The Newsletter • July 20082

Guests were spellbound by ZeroTAIKO.

GNYADA rolled out thered carpet for its 98thAnnual Convention at ThePlaza on June 25.Paparazzi were on hand tosnap dealers as theyarrived for a Night At TheOscars.

David Swarts,Commissioner of the NewYork State Department ofMotor Vehicles, waskeynote speaker for theannual event, which bringsdealers together to honorGNYADA’s incoming andoutgoing chairmen.

More than 300 dealers andguests celebrated, dinedand danced in the Plaza’sgrand ballroom.

SPECIAL THANKSTO OUR SPONSORS:

~PLATINUM~

Zurich

~SILVER~AutoTrader.com

FreemanNewsday

~BRONZE~ADP Dealer Services

CBS RadioCommerce Bank

Daily NewsMyers & Fuller, P.A.Reynolds & Reynolds

Rosenblatt, Kiman, Levittan,Levine & Co.

Sovereign BankValley National Bank

GREATER NEW YORK AUTOMOBILE DEALERS ASSOCIATION2008 Annual Convention Gala

DMV Commissioner David Swarts addresses GNYADA dealers.

GNYADA Director Steve Cannata of Smithtown Toyota and his wife Arlene posewith Paris, Whoopi, and Johnny.

Greater New York Automobile Dealers Association The Newsletter • July 20083

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Congratulations and welcome to GNYADA’s newBoard of Directors and Officers, who were sworn induring the 2008 Annual Meeting:

Brian Miller ChairmanLouis G. Giordano Vice ChairmanNeale Kupermam Vice ChairmanRobert Vail Vice ChairmanRichard Volpe SecretaryJohn LaSorsa TreasurerSheila Meyer Immediate

Past Chairman

The following individuals were elected to the Boardof Directors for a three year term that will end in2011.

Richard Gotlieb - Bay Ridge HondaJohn Koufakis - Star Auto GroupJohn LaSorsa - LaSorsa Buick Pontiac ChevroletBrian Miller - Manhattan MotorcarsMartin Nix - Mack Buick Pontiac GMCRobert Penn - Penn ToyotaJohn Regan - Regan Pontiac Buick GMC TruckNick Toomey - Rallye BMWRichard Volpe - Van Buren Truck Sales

Sheila Meyer also acknowledged the service of threeboard members who completed their terms on the Board.Leon Geller - Beck Chevrolet Co.John Rampone - Ramp ChevroletDwight McGuirk - Smith-Cairns Ford, Inc.

New Officers and Board

3 GNYADA Annual MeetingGNYADA Chairman Sheila Meyer,Dealer Principal of Meyer Chevroletin Middle Village, Queens,welcomed dealers to the AnnualMeeting of the Greater New YorkAutomobile Dealers Association onJune 17. As she addressed the groupfor the last time as Chairman, Meyersaid “As any GM Dealer in the NewYork area can attest, nothing is quiteas constant as change. That fact hasmade it both exciting andchallenging to be responsible forleading this incredible Association.”

During the meeting, Meyer handedover the gavel to Brian Miller, dealerprincipal of Manhattan Motorcars,who was sworn in as Chairman.

The meeting highlighted GNYADA’srecent accomplishments underMeyer’s direction, which included:

1. Passed the most comprehen-sive amendments to the DealerFranchise Law since the lawwas adopted in New York

2. Completed a Doc Fee Studysupporting an increase in themaximum doc fee and

presented it to DMV, where itwas favorably received and isunder review

3. Worked with DMV to create anew program that will allowdealers to get rid of theirdynamometers and completeddrafting regulations that willbe published on July 23

4. Produced a MembershipDirectory – first time ever –including, services, and hottopics that make it a quickreference guide

5. Defeated a Challenge toFederal Preemption ofVicarious Liability

6. Defeated the so-called “Rightto Repair Act”, which wouldhave opened the door to coun-terfeit replacement parts

7. Raised $50,000 in scholarshipsfor people entering the auto-motive industry

8. Defeated congestion pricing9. Worked with DMV to help

dealers avoid suspensions

of dealers’ licenses due toerroneous bond terminations

10. Worked with DMV to helpdealers avoid suspension oftheir Inspection Stationlicenses by installing updatedsoftware.

11. Defeated a law that wouldrequire dealers to provide aperpetual warranty of theirrepairs

12. Blocked a law that wouldban termination fees onLeases

13. Blocked legislation that wouldauthorize use of salvagedairbags

14. Blocked legislation that wouldexpand state inspections toinclude window tints, audiocomponents and other itemswithout an increase in anyinspection fees

15. Helped DMV to create new,simplified Dealer LicenseApplications

Greater New York Automobile Dealers Association The Newsletter • July 20084

Last month, DMV inspectorsvisited Nassau County dealerslooking for proof of workingdynamometers—and twoGNYADA members had theirinspection stations locked out as aresult.

During the lockout, the inspectionequipment was disabled, whichprevented the dealers fromconducting inspections and sloweddown the delivery process.Fortunately, both dealers were ableto make the required repairs totheir equipment and were back up

and running the following day.DMV regulations require dealerswho operate as a public inspectionstation to have a working dyno onsite. Although your dyno may notbe used daily, we recommend youtest it periodically to ensure theequipment is working.

While we all look forward toDMV’s Shared Network Program,nothing has changed yet. In orderto continue operating as a publicinspection station, you must haveboth NYTEST and NYVIPequipment that is in working

order. Keep in mind that DMVwill only accept applications forthe Shared Network Program fromdealers who have been operatingas a public inspection station for atleast one year.

GNYADA knows this issue isimportant to dealers, and isworking closely with DMV to getit resolved. For questions aboutdyno requirements or OBD-IItesting, call Sue Bieber at theAssociation, 718.746.5900, orsend her an email atsusan@gnyada.com.

DMV Inspectors Hunting DynosDealers’ Inspection Operations Shut Down

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Dealers Ask

Q: Can a dealer charge for eachpart/supply used on a job?

A: Yes, according to DMV Repair Shop Regulations,an invoice, which is required, must include (amongother things) a list of all parts/supplies to thecustomer along with the cost of each item. If you aregoing to charge for each item separately, you must listthem individually on the customer’s invoice.Examples include the number of nuts and bolts,screws, clamps or the amount of windshield wiperfluid.

As long as you list each and every part used, it ispermissible to charge for each one of those partsinstead of including the price of each part in yourlabor rate. You should be prepared to substantiate theprice charged for each part in the event of a DMVaudit.

Classic Automobiles in Eastchester,New York in 1988 when his father’spartner retired.

Just eight years later he founded hisown dealership, Manhattan Motorcars,having sought and won the Bentleyand Rolls Royce franchises for NewYork City.

Miller is a board member of both theBentley and Rolls Royce dealercouncils and has received manyindustry awards for outstandingcustomer service. He has sponsoredmany events and helped raise funds forcharities including the WestchesterCounty March of Dimes, Boys andGirls Club of America, the East SideHouse Settlement, Children forChernobyl Charity, the ColumbusFoundation, the Cancer FertilityAssociation, NYU Toys for Tots, andthe Peconic Medical Center.

...Brian Miller(continued from page 1)

Greater New York Automobile Dealers Association The Newsletter • July 20085

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Last fall, GNYADA told dealers that written pay planscan often prevent wage disputes for commissions due. Asof October 2007, New York Labor Law stated that allcommission pay plans must be in writing. In the absenceof a written agreement signed by both the employer andthe commissioned employee, the pay plan is presumed tobe as described by the employee!

When the Law became effective in 2007, there was someuncertainty as to whether New York would permitdeductions or reversals from commissions. In June 2008,New York’s highest court addressed that question.Generally, New York law only permits deductions fromwages that are for the benefit of the employee orauthorized by law such as tax deductions, health benefits,credit union, or garnishments, but read on!

Why is a written pay plan important?When a commission is earned, it becomes wages.Deductions from wages are only permissible in thespecific instances spelled out in the Labor Law. Properlyexecuted written pay plans that spell out when acommission is earned and thus, when it becomes wages,and what deductions or charge-backs apply will control ifthere is a dispute regarding payment of commissions.

What your written pay plan mustinclude:Dealers must be sure that all commissioned employeeshave a written pay plan that has been signed by both theemployee and the employer. That pay plan must include:

• Description of how wages, salary, draw on com-missions, commissions and all other amountsearned are to be calculated. Include language thatwages are not earned until after deductions/rever-sals/charge backs are subtracted;

• Frequency of reconciliation between draw (tosatisfy minimum wage rules at least) andcommissions, where the writing provides for arecoverable draw;

• Details relevant to payment of wages, salary, drawon commissions and all other monies earned andpayable in the case of termination of employmentby either party.

What is the downside of not having awritten plan important?In this recent case, the Court decided that, in the absenceof an agreement, written or implied, a commission isdeemed to be earned when the salesperson produces abuyer who is ready, willing and able to make thepurchase. This would require dealers to make paymentswhen a purchaser is found rather than when the buyerpays or when the payment may no longer be reversed bythe purchaser.

GNYADA’s suggestion:The Court has said there are two ways a commission isearned 1) when a pay plan says so, and 2) if there is nopay plan, when the employee produces a ready, willingand able buyer.

Dealers should make sure their written pay plans specifywhen the commission is earned and under whatcircumstances there may be a reversal.

There is a downside to allowing employees who have notsigned commission agreements to continue working. It ispermissible to terminate an employee for refusing to signa written pay plan.

GNYADA can helpEmployee Relations Plan (ERP) members have receivedupdated Sample Commission Agreements as a benefit ofmembership in ERP. If you would like a SampleCommission Agreement and you are not currently amember of ERP, it is available for a small fee. Or, for just$365, you can join ERP and receive the Agreement freeof charge, along with many other exclusive benefits. Tosign up today, contact Sue Bieber at 718.746.5900 orsusan@gnyada.com.

Commission Pay Plans UpdateWhy Putting It in Writing is Even More Important

Subaru Distributors Corp. was a Birdie Sponsor for the2008 GNYADA Manufacturers Challenge Cup. They werenot listed in the Highlights.

We thank them for their support and regret the error.

CORRECTION

According to OSHA, four factors affect people working inhot areas: temperature, humidity, radiant heat and airvelocity. Dealers should take steps to protect employeesfrom heat related injuries.

Dealers should also consider each employee’s ability towork in the heat based on his/her weight, age, fitnesslevel and known medical conditions.

OSHA suggests the following to protect employeesfrom heat stress:

• Encourage employees to drink plenty of water- asmuch as one quart per hour even if they are notthirsty. Avoid items that dehydrate the body, suchas alcohol and caffeinated beverages.

• Use general ventilation and spot cooling by localexhaust ventilation at points of high heatproduction. Cooling fans may be helpful in theseareas.

• Train first-aid employees to recognize and treatsigns of heat stress and be sure all employeesare aware of who has been trained to providefirst-aid.

• Train supervisors to be alert for early signs of heatstress and to allow workers to take a break if theyshow signs of heat related illness.

• Alternate work and rest periods and permit longerrest time in cool areas to help employees avoidheat stress. Schedule heavy work for cooler timesof the day.

• Educate employees to recognize heat relatedillnesses such as the signs of dehydration,exhaustion, fainting, heat cramps and saltdeficiency. Be sure employees are aware of theneed to replace fluids frequently.

• Monitor the workplace for temperature, humidityand employee reactions to the heat regularly.

Greater New York Automobile Dealers Association The Newsletter • July 20086

7 Summer Survival Tips

Update on Used CarConsignment Sales

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Last month we told you it ispermissible for dealers to acceptcars on consignment as long as youfollow specific DMV regulations.After the article went to press,GNYADA received this question:

Should a dealer remove theowner’s license plates andregistration sticker whenaccepting a car for a consignmentsale? What about the test drive?

According to a DMV technicalanalyst, the answers are:

• Yes, the dealer should removethe license plates.

• Yes, the dealer should removethe registration sticker andinspection sticker.

• The test drive should takeplace on a dealer plate.

Remember, a car sold on consign-ment is a car sold by the dealer.Therefore, the car must meetVehicle and Traffic Law Certificateof Adequacy requirements, awritten Lemon Law Warranty mustbe provided to the buyer, and aUsed Car Buyers Guide should bedisplayed in the vehicle.

If the car is not sold according tothe terms of the consignmentletter, the car must be returned tothe owner with a replacementregistration sticker. DMV requiresa completed MV-82, photo ID, anda $3.00 fee for replacementregistration stickers. A replacementinspection sticker ($2.00) shouldalso be affixed. Assistance isavailable through DMV-Direct at718.747.0400.

...Franchise Bill(continued from page 1)

• Sales or PerformanceRequirements – clear, concisedisclosures and reasonableapplication.

• Enforcement against factory stores– closing potential loopholes.

• Restrictions of factory trainingrequirements – imposed for thefirst time in New York.

• A stay of a termination of a franchiseduring an appeal – available for thefirst time in New York.

GNYADA’s leadership, staff,lobbyists, and consultants worked withthe state and other metro associationsto develop a bill that would bring thestrongest possible protections todealers. We will continue to work withthe Governor’s office to ensure hisapproval for the bill.

GNYADA thanks Senator TomLibous and Assemblyman DavidGantt for their leadership andcommitment.

Greater New York Automobile Dealers Association The Newsletter • July 20087

Recently, the Department of Motor Vehicles (DMV) sent amemo to dealers throughout the state explaining its posi-tion on the proper use of dealer plates. (A copy is enclosedin this newsletter.)

The memo does not distinguish between transporter anddealer plates; it appears they can often be used inter-changeably. GNYADA was informed that DMV also sent asimilar memo was sent to police chiefs and commandingofficers throughout the state.

The memo explains that permissible use of dealer/transporter plates includes use on vehicles owned orcontrolled by dealers and held for sale or demonstrationwith a few exceptions.

Dealer/transporter plates cannot be used on:• a vehicle maintained primarily for towing ortransporting property

• rental cars• vehicles used to transport passengers for hire• vehicles owned by the dealer’s or family members; or• service cars used in the course of conducting business

Most of the inquiries GNYADA receives regarding dealerplate issues are whether or not inspection and registrationstickers are required on vehicles using dealer plates. This

memo makes it clear that neither an inspection sticker nora registration sticker is required on these vehicles.

The memo addresses the quantity of dealer plates issued toeach dealership. If you can demonstrate either increased salesvolume or the addition of sales staff, you can obtain addition-al plates from your local DMV Field Services Office.

The memo also reminds dealers about the proper use oflicense plate frames. Plate frames cannot obscure letters,numbers or other markings on the license plate. If youprovide license plate frames to your customers, make surethe frames comply with the Vehicle and Traffic Lawrequirements.

What Dealers Should Do1. Make copies of the enclosed memo and place a

copy in every car on which you use a dealer/transporter plate.

2. If stopped by the police, present the letter and tellthe officer a similar memo was sent to everypolice department in the state.

GNYADA will continue to work with DMV on the bestway to prevent dealers from receiving tickets for usingdealer plates properly.

9 Dealer and Transporter PlatesThe Rules According to DMV

CondolencesShirley Kuperman

We are saddened to inform you ofthe passing of Shirley Kuperman,mother of GNYADA Director andmember Neale Kuperman ofRockland Toyota.

Mr. Kuperman has served as aDirector of the Greater New YorkAutomobile Dealers Associationsince 1995 and was just re-electedto serve another term as ViceChairman at the Association’sAnnual Meeting on June 17. Inaddition, Mr. Kuperman hasserved as the NADA Directorrepresenting the metropolitanNew York area since February2006, and was just elected to hissecond term.

The family has requested that anydonations be made to the AmericanCancer Society in memory ofShirley Kuperman.

Mrs. Kuperman is survived by herhusband of more than 63 years,Phil, and by her sons, Neale,Howard and Bruce, as well as fivegrandchildren, and a great-grand-son. Condolences may be sent tothe family at:

Rockland Toyota618 Route 303Blauvelt, NY 10913

On behalf of the Board of Directorsand members of GNYADA, weexpress our heartfelt condolences toNeale, his son Evan, and to all oftheir families for their loss.

Monique Chalom

The Board of Directors, membersand staff of GNYADA extend theirdeepest sympathy to longtimeGNYADA Member Charles Chalom,Dealer Principal of Premier Ford inBrooklyn, whose wife Moniquepassed away on July 6, 2008.

Condolences may be sent to thefamily at:

Premier Ford5001 Glenwood RoadBrooklyn, NY 11234

The family has requested that anydonations be made to unspecifiedchildren’s cancer research charitiesin memory of Monique Chalom.

Mrs. Chalom is survived by her hus-band Charlie, and their two children.

EMPLOYMENT CORNER

The GNYADA Newsletter publishes information about individu-als who are seeking employment with metro area dealers. TheAssociation’s policy is to only list individuals who are notcurrently employed at a dealership. GNYADA does not checkemployment references or information contained on a candi-date’s resume. The listing should not be viewed as an endorse-ment of any candidate. GNYADA encourages dealers to checkthe references of anyone they may consider for employment.

The Newsletter is published by GNYADA, a not-for-profit organization rep-resenting franchised automobile dealers in the New York Metropolitan area,located at 18-10 Whitestone Expressway, Whitestone, New York, 11357.For more information call:GNYADA: 718.746.5900AUTOCAP: 800.522.3881DMV Direct: 718.747.0400GNYADA Insurance Brokerage, LLC: 718.746.8100New York International Auto Show: 718.746.5300Center for Automotive Education & Training: 718.640.2000Or send your questions via email to: Assistance@GNYADA.comThe information contained in this Newsletter may not be relied upon forthe avoidance of tax penalties. Readers are urged to discuss any issuesraised in this Newsletter with their legal and tax professionals.All original material © GNYADA 2008

Greater New York Automobile Dealers Association The Newsletter • July 20088

POSITION RESIDES IN FILE #

OFFICE

AdministrativeAssistant College Point 200

Biller Brooklyn 201

Biller/Bookkeeper Flushing 202

Bookkeeper Queens Village 203

Receptionist/Clerical Commack 204

SALES

F & I Manager Brooklyn 205

SERVICE & PARTS

Service Advisor –Entry Level Bronx 206

Service Manager Elmont 207Seaford 208

Service Technician Brooklyn 209Kings Park 210

WarrantyAdministrator Valley Stream 211

GNYADA’s Employment Corner is a free recruitingand job placement service that lists qualifiedcandidates for positions at dealerships. If you havea position to fill, call (718) 640-2000

We’re delighted to introduce JenniferBerman, GNYADA’s new Director ofMembership Services.Jennifer comes to GNYADA with morethan 13 years of association managementexperience. She spent the past nine yearswith the Risk and Insurance ManagementSociety (RIMS), as Manager ofMembership & Chapter Services. Prior to RIMS, Jennifer helda similar position at the Public Relations Society of America.At GNYADA, Jennifer hit the ground running, coordinating theManufacturers Challenge Cup Golf Outing, surety bonds, andmembership renewals.In the upcoming months, she will concentrate on the DealerDiscount Club and providing member services.When not at work, you can find Jennifer, a native New Yorker,enjoying rock concerts, reading or spending time with familyand friends. She holds a Bachelors Degree in Public Relationsfrom Long Island University – CW Post. At GNYADA, she canbe reached at Jennifer@gnyada.com.

10 Your NewMembership Director

Keytrack Equipment NeededLooking for old Keytrack equipment:computers, monitors, keytags, etc.

Contact Rob Certilman, Smithtown Acura631.366.6000

Save the Date!Red Flag Rules Seminar

Red Flag Rules are designed to help prevent identitytheft—and all dealerships must have a writtencompliance plan in place by November 1, 2008.

Learn how to identify Red Flags, and what to dowhen you discover one! See the enclosed flyer and call

Ann Daly at 718.746.5900 to register today!

Come to an important seminar on Red Flag RulesSeptember 10, 2008

Center for Automotive Education & TrainingWhitestone, Queens