Coleman New Pres. Dealer Transport Law - SCADA

10/24/2014
Executive Update 7.7.14
Executive Update 7.7.14
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July 7, 2014
GREGG COLEMAN BEGINS TERM AS NEW SCADA
PRESIDENT
Gregory "Gregg" L. Coleman, of George Coleman Ford in Travelers Rest, was elected as President of
SCADA for 2014-2015 and began his one year term on July 1st.
Coleman has served on the SCADA Board of Directors for nine years and in that time has chaired the
Legislative Committee, Budget and Finance Committee as well as the Safety and Public Relations Committee
and is the current chair of the Advisory Committee. He is the Majority Owner of George Coleman Ford, Inc.,
which was established in 1930 by his grandfather George Coleman, Sr. The family legacy continues at
George Coleman Ford, Inc. as Gregg’s son, Jake joined the Internet Department in June 2013. Today, George
Coleman Ford, Inc. is an award winning Dealership and has received the prestigious Ford President’s Award
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for five years.
Gregg takes great pride in serving his Upstate community. He has earned the famed Eagle Scout Award from
the Boy Scouts of America and is an active member of Greenville First Baptist Church. He is also a former
Deacon for Travelers Rest First Baptist. Gregg also serves as the Chairman of the Finance, Audit and
Compliance Committee of the Board of Directors for the Bank of Travelers Rest.
Gregg enjoys staying fit through running and playing tennis. He is also a nature-lover and enjoys salt-water
fishing with his daughter. Gregg resides in Travelers Rest with his wife Sally and has two children – Jake and
Sarah and a daughter-in-law Kellie.
Other Officers also elected for the 2014-2015 term were First Vice President, George F. Gibbes of Gibbes
Ford in Orangeburg and Treasurer, Jay Wakefield, of Wakefield Buick-GMC-Suzuki in Spartanburg.
Representing the five districts as Regional Vice Presidents for the SCADA Board of Directors are Perry
Shuping of Honda of Columbia in the Capitol District, Doug McElveen of McElveen Buick-GMC of
Summerville in the Coastal District, Chip Foster of Vic Bailey Honda of Spartanburg in the Palmetto District,
Hub Meggs, Jr., of Meggs Ford, Inc. of Bennettsville in the Pee Dee District and Chip Cooper, III of Cooper
Motor Company of Clinton in the Piedmont District.
NEW DEALER TRANSPORT LAW IN EFFECT
SCADA with the help of Senator Vincent Sheheen (sponsor of the legislation and primary advocate) has
successfully passed legislation that deletes the requirement that Dealers pay unemployment taxes and benefits
on Dealer transport drivers. The South Carolina Department of Employment and Workforce (SCDEW) has
been auditing automobile Dealers around the state and recently we heard from several Dealers that SCDEW
was charging them back for unemployment taxes on “transport drivers” and then also requiring the Dealership
to pay unemployment taxes on those retired drivers going forward. For automobile Dealers, we have never
considered these retirees to be eligible for unemployment benefits. These transport drivers are usually retired
individuals who spend their time in the mornings at Hardees sipping coffee and solving problems. We call
each of them until one says yes he can help the Dealership out by picking up a car or moving a car for us.
That is the end of the agreement. We may call that person 3 times this week or 3 times this month. They may
agree to move a car every time we call or not. The decision is theirs. If Dealers had to consider every retired
transport driver as a true regular employee and pay unemployment taxes, Dealers likely would stop utilizing
the retirees help.
WHAT THE NEW LAW SAYS:
The term "employment" as used in Chapters 27 through 41 of this title does not include:
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(20)
An individual performing a service for an automobile dealer related to the transportation of individual
vehicles to purchasers or sellers of vehicles, including, but not limited to, when:
(a)
an automobile auction is the purchaser, seller, or both;
(b)
the contract of service contemplates that the service is to be performed personally by the individual;
(c)
the individual does not own the vehicle used in connection with the performance of the service;
(d)
the service is in the nature of a single transaction with no guarantee of a continuing relationship with the
automobile dealer for whom the service is performed; or
(e)
any combination of sub items (a) through (d)."
Time effective
SECTION
2. This act takes effect upon approval by the Governor.
Ratified the 5th day of June, 2014.
Approved the 6th day of June, 2014.
WHAT THE NEW LAW DOES NOT CHANGE:
1. Even if someone is exempt from South Carolina unemployment taxes, they have to at least make
minimum wage for the hours it took to complete the task. Also, if it took them more than 40 hours
they would need to be paid overtime.
2. The Dealership should be maintaining a record of hours the transport driver worked.
3. The Dealership should be providing the transport driver a W-2.
4. The Dealership should be deducting federal and state taxes and matching social security.
SCDMV UPDATE
SCDMV reports that there are 3,405 licensed automobile Dealers in South Carolina. There have been 229 new
Dealer licenses granted already this year. 377 sanctions have been issued as of the end of June as compared to
366 sanctions issued by this time last year. SCDMV has received 343 Dealership complaints from customers.
7 Dealerships have been cited for "selling out of trust" so far this year.
SCDMV has asked Dealers to let customers know that the Dealership is filling out the property tax/odometer
(PTO) form for the customer which defers the property tax for 120 days. SCDMV has gotten some complains
from customers that they did not realize a tax bill was coming later.
SCDMV is asking that Dealers be sure and fill out PTO forms completely and legibly.
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2015 CONVENTION: SAVE THE DATE
Join Us at the Kiawah Island Golf Resort, Kiawah Island, SC
May 15 - 17, 2015
MOTOR VEHICLE DAMAGE DISCLOSURE
The South Carolina General Assembly passed an act in 1995 requiring disclosure of certain damages prior to
a manufacturer delivering a new motor vehicle to a Dealer and/or a Dealer entering into a new vehicle sales
agreement with a purchaser. The act states that if a new motor vehicle is damaged while still in control of the
manufacturer and the cost to repair the vehicle exceeds 3% of the manufacturer's suggested retail price of the
vehicle, the manufacturer must disclose the damage and repair, in writing, to the Dealer prior to delivering the
vehicle to the Dealer.
Similarly, if a new motor vehicle has been damaged and the cost to repair the damage exceeds 3% of the
manufacturer's suggested retail price, the Dealer must disclose the damage and repairs, in writing to the
purchaser. This disclosure must be made prior to entering into a sales agreement with the prospective
purchaser.
Neither a manufacturer nor a Dealer is required to disclose damage to glass, tires, bumpers, or in-dash
equipment if the damaged item has been replaced with new or comparable new equipment.
The act specifically states that in figuring the cost of the repairs, the Dealer's authorized warranty rate for labor
and parts be used.
Damage Disclosure Forms are available from SCADA in packages of 50 two part documents for $5.00 per
package.
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We have included "Q's & A's" that may be helpful to you.
Q.
When you refer to the "manufacturer's suggested retail price" does that
mean the window sticker, or does it mean the window sticker plus any addendum sticker we may add
at the Dealership?
A.
The act defines "msrp" very clearly as: "the retail price of the new motor
vehicle suggested by the manufacturer including the retail delivered price suggested by the manufacturer for
each accessory or item of optional equipment physically attached to the new motor vehicle at the time of the
delivery to the motor vehicle dealer." The act does not allow you to include any Dealer added option, or
service, to the manufacturer's suggested price.
Q.
A new vehicle with an "msrp" of $28,000 was delivered to my Dealership
with a disclosure from the manufacturer that the roof had been damaged and repaired to the tune of
$960.00. Must this disclosure be made to a purchaser prior to entering into a sales agreement?
A.
Yes. $960.00 exceeds 3% therefore it must be disclosed in writing.
Q.
Another $28,000 new vehicle is delivered to the Dealership and the factory
let us know that a $350.00 repair was made on the left door. Later on, a lot boy backed into a light
pole on the lot and repairs to the right fender totaled $535.00. Would we need to be concerned about
disclosing any damage information to a prospective customer?
A.
Yes, you would have to disclose prior to entering into a sales agreement,
that a total of $885.00 had been spent repairing the left door and the right fender. If the repairs had totaled an
amount that did not exceed 3% of "msrp" (in this case $840.00) no disclosure would have been necessary.
Q.
Do we need to keep copies of these Damage Disclosure?
A.
Yes. You should include
E. Sims Floyd, Jr.
Executive Vice President
DISCLAIMER:
The material, summary or information forwarded to you is for your general business information only and is
not and does not constitute legal advice or a legal opinion. You should consult with legal counsel for any
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