Dealer Pay Plan Litigation Attorney and Lawyer for Suing Car Dealerships
The underlying basis for any claim against the dealer pertaining to the pay plan or a written agreement containing the commission structure is based on dealership cost. There could potentially be several dealership costs. There could be the actual accounting dealership cost. There can be a dealership cost pertaining to the calculation of commissions. There can be the dealership cost pertaining to the calculation of taxes paid to the IRS or the state, such as sales tax and income taxes. It is the very point of the litigation and the claims underlying the litigation pertaining to the pay plan to determine the exact cost upon which the commissions are calculated.
Sometimes there is an overlap and sometimes there is not. Sometimes a fictitious cost gets carried forward and impacts the taxes sometimes it does not. These are the issues which must be dealt with in pay plan and commission litigation. However, the most imperative issue in this litigation is determined which costs go into the calculating of commissions. Are these costs allowed to reduce the commissions based on the pay plan?
Determining acquisition cost on vehicles acquired by the dealership is relatively straightforward. Trade vehicles cost are determined based on appraisal when the dealership takes the vehicle and on trade. Auction vehicles are determined by the amount of money sent to the auction. New vehicle costs are determined based on invoice. However, it gets very tricky when the cost is either increased or decreased by other various items. So, the initial cost needs to be determined then additions to the cost need to be discovered through the litigation process.
The real issue is in the "extra" costs that are added to the acquisition cost of a vehicle that is gong to be sold. Have you ever heard of Lot fee, pack, dent, bruise, glom, service charge, adds, invoice adds, dealer cash or similar term? All of these items can affect commissions to all of the dealership employees These claims are available when a dealership intentionally and willfully (and unintentionally) breaches their employment agreement and/or commission agreement with their employees and sales staff. Legal claims also are present when a dealership miscalculates employee commissions, whether intentional or unintentional. If there is an intentional misstatement of employee commissions, there would be a claim for punitive damages. If you are a dealership employee, you should ask your employer the following questions:
How does the dealership establish the cost of the vehicle?
Can I see proof of the dealership costs by viewing the back screens?
Are there any added costs in addition to pack?
Does the dealership adjust the reserve account without any basis?
Please provide me proof of all charge backs which might reduce the gross commissionable proceeds.
Why is my pay substantially less than what I have already calculated?
Is the dealership refusing to show me key documents?
Is the dealer avoiding my questions about how my pay is calculated?
Why are full retail costs for repairs being added to the vehicle cost which reduces my pay?
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