Frequently Asked Questions

Advertising

• Are there any special rules for advertising on the internet pursuant to the Consumer Sales Practices Act?

• Can a dealer post a different price for a vehicle on its website than is advertised elsewhere?

• If a customer is unaware of an advertised price of a vehicle, must they be told?

• I want to advertise that vehicles will be sold for less than invoice.  What requirements must I meet?

• When advertising a price for a motor vehicle, can I exclude items such as acquisition or bank fees? 

• May I use “Liquidation Sale” in my advertisement?  

• May an advertised price for a used motor vehicle be compared to “list”, “sticker”, “invoice” or “MSRP”?

• Can a dealer advertise the price he/she will pay for a trade in?

• May a price to be paid for a trade in be advertised as a range of prices?

• In a radio ad, can I use a 1-800 number to provide all the Reg. M Disclosures (fact that the offer is for a lease, amount due at lease inception, payment schedule and end of lease liability)?

• Can a dealer advertise a price for a vehicle which is available only to employees, for example DCX, A-Plan or GMS pricing?

Arbitration

• Does OADA recommend a particular arbitration agreement?

• Are there any “do’s & don’t’s” of evaluating an arbitration agreement?  

Buyer's Guide

• Do Demonstrators need to have a used car Buyers Guide displayed?

• What is the correct format for a Buyers Guide?

• When offering a limited warranty, how should the Buyers Guide be filled out?

• What Dealer Identification information is required to be on the Buyers Guide?

• Must a consumer sign the Buyers Guide?       

• What are the rules when conducting Spanish-language sales?     

• May the Buyers Guide be removed for a test drive?

CAT Tax

• What is the commercial activities tax (CAT)? 

• Who must pay the CAT?

• What are the filing and registration requirements?

• What are the CAT phase-in rates?  

• What are considered gross receipts?

• What receipts are excluded?

• What items are deductible?  

• REBATES  

• MANUFACTURER PAYMENTS

• DEALER TO DEALER SALES

• SALES & SERVICE

• F & I PRODUCTS

• MISCELLANEOUS ITEMS

Consumer Sales Practices Act

• Where can I get a copy of the Consumer Sales Practices Act? 

• Must a dealer disclose to a customer that a vehicle was previously used as a demonstrator, factory official vehicle or rental vehicle?

• When must a dealer disclose prior damage or defect of a new vehicle to a consumer?

• Must a dealer disclose that a vehicle has a branded title?  

• If a consumer sues a supplier (dealer) under the CSPA, can he collect damages for pain and suffering, humiliation or other non-economic damages?

Dealer Licensing

• May a dealer display a motor vehicle somewhere other than his dealership? For Example, may a dealer display a vehicle at a charity event?

• May a dealership pay or reward consumers for referring potential customers to the dealership? 

Dealer Plates

• Can an employee or family member of a dealer be cited for driving a vehicle with a dealer plate for non-business purposes or personal use? 

• Are there any restrictions regarding dealer plates?

Deposits

• Is there a specific regulation governing deposits?     

• Must I provide a customer with a written receipt if they give me a deposit?      

• When can a dealer keep a consumer’s deposit?  

Documentary Service Charge

• What is the maximum amount a dealer may charge in Ohio as a Documentary Service Charge? 

• May the documentary service charge be included on both cash and financed transactions?

• What is the purpose of a documentary service charge?

Do Not Call List

• What is the National Do Not Call List?

• What is the Existing Business Relationship Exception?

• If a consumer has made an inquiry or submitted an application to my dealership, may I contact the consumer via telephone, even if his/her phone number is on the Do Not Call List?

• Can a customer ask a business to place his/her name on a company specific “Do Not Call” List?

• How will a business know if someone’s phone number is listed on the Do Not Call Registry?

• How often must I access the registry and remove numbers from my calling list?

• What happens to companies that don’t pay for access to the registry?

• What’s my liability if my company inadvertently calls a number on the registry?

Exporting A Vehicle

• Can I export a new motor vehicle to a foreign country?  

• If I sell a used motor vehicle to someone in a foreign country, is Ohio sales tax due?

• Are there special titling requirements when exporting a vehicle?

• If a resident of Canada or Mexico purchased a vehicle and wished to drive it across the border, would the dealer be required to complete an export application?  

Gift Cards

• Are gift certificates and gift cards regulated by Ohio law?

• Are there instances when the gift card regulations do not apply?

IRS Cash Reporting

• When must a dealer prepare an IRS form 8300?

• What does “cash” mean for the purposes of Form 8300?

• What is a “related transaction” which would require completion of a Form 8300?

• When is the Form 8300 due?

• Must a business notify its customer that it has filed a Form 8300 regarding the cash transaction with the customer?

• If the business is unable to obtain the Taxpayer Identification Number of a customer making a cash payment of over ten thousand dollars, should the business file Form 8300 anyway?

• How should a dealership handle a non resident alien with no SSN?

• What exactly can be said to a customer who inquires about IRS 8300 reporting?

• What are the penalties if a dealership doesn’t file a Form 8300?

Minimum Wage

• What is Ohio’s minimum wage?    

• Which employees are excluded from the new state minimum wage?        

• What information must be provided to employees at the time of hire?            

• Are there any recordkeeping requirements related to Ohio’s minimum wage law?   

• Are “white collar” salaried-exempt employees excluded from the record-keeping requirements?  

• If an employee requests his own records, must an employer provide them?

• What is the Federal Minimum Wage?

Motor Vehicle Titling Law

• When a dealership sends a pay off to a lien holder, how soon must the lien holder release its lien and send the title to the dealership? 

• How can a dealer obtain a certificate of title to an unclaimed motor vehicle?

• What is the BMV 3772 Form?  Can I use it for all my title application needs?

• Can a vehicle be titled in the name of a minor?

Sales Tax

• Do rebates reduce the "price" for calculating sales or use tax?

• Do dealer cash discounts reduce the price for calculating sales or use tax?

• Are farmers exempt from paying sales or use tax on vehicles that are licensed to operate on the highways?

• Is the luxury tax part of the tax base for calculating sales tax?

• Can a person trade in more than one motor vehicle on the purchase of a new motor vehicle and deduct the trade-in value of both vehicles?

• Does a trade-in reduce the price when calculating sales or use tax?

• Does a dealer title a "parts truck" and pay tax when the title is issued?  

• What is included in the "price" of a motor vehicle when calculating the sales and use tax?

• If the manufacturer repurchases my motor vehicle, watercraft or outboard motor,  pursuant to the lemon law, and replaces it with another vehicle, do I have to pay tax when applying for title on the second vehicle?

• How do I obtain a refund if tax has been paid in error?     

• Is the amount charged for the Federal Excise Tax (FET) included in the tax base for calculating sales tax?

• Are members of the armed services exempt from sales or use tax?  

Additional Sales Tax Information- Products and Repairs

• A customer has had repairs completed which are covered by an extended service contract.  Are the repairs subject to sales tax?   

• Is the documentary service charge subject to sales tax?

The Patriot Act, OFAC and the Specially Designated Nationals List

• What is the Patriot Act? 

• How does the Patriot Act affect automobile dealers?

• What is OFAC?

• Do dealers need to check the SDN list for every transaction, whether or not the customer pays in cash?

• Where can I find the SDN List?

• What should I do if there is the name of a potential customer appears to be a match with the SDN list?

Sales of Vans to Schools

• May a dealership sell a van designed to seat nine or more passengers to a school for the transportation of students?

• What federal requirements apply to the sale of vans for the transportation of students?

Uniformed Services Employment and Re-Employment Rights Act (USERRA)

• What is the Uniformed Services Employment and Re-Employment Rights Act (USERRA)? 

• Who is covered by USERRA?

• As the employer of a service member, must I re-hire the service member at the completion of his or her service?

• How does USERRA affect my service member’s employer-sponsored health care coverage?

Wage & Hour

• Does the FLSA require severance pay, sick leave, vacation or holidays?

• Is there an overtime payment exemption for salespeople paid on commission?

• May a dealer carry-forward commissions?

• Does either Federal or Ohio law require an employer to pay an employee his/her final paycheck immediately?