Author Archives: Gregory J. Johnson

Auto Coverage: Are Household (Family Member) Step-Down Exclusions Void Under Minnesota Law?


By Greg Johnson. A 2014 decision of the South Carolina Supreme Court decision invalidating a household (a/k/a “family” or “intra-family”) “step-down” (a/k/a “drop-down”) to a personal auto policy caused me to dust off my research from over a decade ago … Continue reading

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Guest Contributor Jim Radogna: F&I Fact vs. Fiction


By Jim Radogna. It’s not uncommon for me to be asked to weigh in on the occasional compliance conundrum posed on some social media forum. Many such inquiries involve disagreements about long-held beliefs in F&I and whether or not they’re … Continue reading

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Auto Coverage: “Absolute” & “Frozen” Liability under the Minnesota No-Fault Act


By Greg Johnson. A parent completes a personal auto application for automobile insurance and does not disclose that there are any other licensed drivers in the household that will operate the insured vehicle. Later, after the policy is issued, a … Continue reading

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Auto Dealers Entitled to Money Distribution in Auto Parts Antitrust MDL Case


By Greg Johnson. On November 19, 2015, U.S. District Judge Marianne O. Battani of the Eastern District of Michigan issued an Order Granting Final Approval of an initial, partial settlement of $59 million to auto dealers in the multi-district (MDL) … Continue reading

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Guest Contributor Jim Radogna: Dealer Fees Under Attack


By Jim Radogna. Two recent actions for alleged dealer fee violations in South Carolina and Indiana are a potential cause for concern in other states due to the likelihood of copycat legal actions. While these states had no caps on … Continue reading

Posted in Coverage, Doc Fees, Indirect Financing, Regulatory Compliance, TIL Disclosures, Truth in Lending Act | Tagged , , , , | Leave a comment

Times Change and so do Car Prices: Bring back the Gremlin!!


By Greg Johnson. I remember when my dad sold AMC Gremlins for $1,999 in the early 1970’s.  Yes, I grew up with Hornets, Javelins, Matadors, Pacers and Gremlins — probably the most bizarre car line ever produced in America, or … Continue reading

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Auto Rental News Special Report: The Problem with Renting Fast Cars


I was a featured commentator in this report, the second highest viewed article of Auto Rental News in 2015: Traditional rental companies and leasing companies are protected by laws that eliminate vicarious liability (such as the federal Graves Amendment) or … Continue reading

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Why do Auto Dealers Purchase Limited Truth in Lending Coverage?


By Greg Johnson. Why do dealerships keep purchasing statutory errors and omissions coverage that is not likely to protect the dealership if it is sued by a customer for truth in lending violations? I’ve been handling dealership insurance coverage disputes … Continue reading

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Protecting the Dealership’s “Front-End” and “Back-End”: What Does that Mean?


By Greg Johnson. Everyone in the retail automobile industry is familiar with the terms “front-end” and “back-end.” They represent two sources of potential revenue (and, hopefully, profit) for auto dealerships: The “front-end” refers to revenue realized on the sale of … Continue reading

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Minnesota Dealership and Lenders Prevail in Fair Credit Reporting Act Litigation


By Greg Johnson. Can an auto dealership be liable for damages when it transmits a customer’s credit application to several financial institutions through an automated on-line credit application system and the financial institutions pulls the customer’s credit report without express … Continue reading

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