Pub. 6 2016 Issue 2

9 including litigation and associated legal fees and costs, as well as fines and penalties. So what are some ways dealerships may more effectively handle these complaints? One way to effectively handle these complaints is to ensure that dealership personnel who deal with customers are well- trained. These dealership employees are the “first responders” who can proactively listen to the customer and attempt to respond and resolve the customer’s differences on the front end, whether in connection with a sale or service. These personnel should be required to have a basic knowledge and understanding of all ap- plicable state and federal laws and regulations that are of impact. Dealership counsel should assist in educating dealership person- nel through guidelines and best practices instruction. This can help prevent a customer’s concern from turning into a lawsuit or legal claim. Another effective approach is to emphasize effec- tive listening and communication skills by dealership personnel to address the customer’s needs with the goal of preventing the necessity of filing a consumer complaint with regulatory agen- cies in the first place. Dealership personnel can also assist with recognizing frivo- lous complaints. Some customers disguise their buyer’s remorse in the form of a consumer complaint seeking to get out of the deal or payments they realize they cannot afford. Still others may be instinctively litigious. By promptly addressing complaints at the outset, the dealership is better able to weed out insincere or harassing complaints. It is important that the complainant knows the dealership will vigorously defend itself against such complaints. On the other hand, reasonable complaints warrant careful attention with an eye towards resolution. In some instances, especially where the customer’s concern involves a claim of product defect, the dealership should involve both the manufacturer and its insurance carrier. For example, if the dealership adhered to manufacturer policy or instruction in servicing a mechanical concern, depending on the agreements with the manufacturer and applicable law, the manufacturer may be required to indemnify and hold the dealer harmless from the customer’s claim. Some manufacturers require the dealer to notify them of the consumer complaint as a condition to indem- nification. This may also extend to responsibility for the remedy and other relief. Finally, dealerships should confer with legal counsel upon re- ceipt of a consumer complaint filed with the regulatory agencies. This is especially true if the customer has retained an attorney. Even if not, however, counsel can assist in advising the dealer- ship client as to an appropriate resolution to mitigate further exposure and liability, as well as prepare necessary legal release instruments in the event a settlement is achieved. By effectively and proactively handling consumer complaints, dealers can help avoid or, at least, reduce and mitigate the adverse consequences of consumer complaints to the dealership’s business, its reputa- tion, time and other resources.  Julie A. Cardosi is Principal of the private firm, Law Office of Julie A. Cardosi, P.C., of Springfield, Illinois, and has exclusively represented the unique business interests of automobile dealers state-wide for over 25 years. Formerly in-house staff legal counsel for the Illinois Automobile Dealers Association, she concentrates her practice in the areas of dealership ownership transfers (asset purchases and stock acquisitions), mergers and acquisitions, franchise law and franchise issues, factory relations, corporate law, add points, commercial real estate transfers, government regulation, advertising, and other issues impacting day-to-day dealership operations. She is also a former Illinois Assistant Attorney General and Deputy Chief of the Consumer Fraud Bureau of the Attorney General’s Office. Dealers may wish to seek the advice of their own counsel on the subject matter of this article. While the Attorney General’s office does not represent citizens privately, often times, these consumer complaints can result in investigations and law enforcement actions by the state against those businesses whose practices are alleged to be unlawful.