But there`s a greater responsibility associated with this practice that your employees are probably not aware of. If your employees encounter “accessory appointments” with your customers, your dealer is likely to be in breach of your indirect loan agreements with your lenders. For example, the M&T Massachusetts Dealer Agreement (“M&T Agreement”) contains language that prohibits these “ancillary agreements.” Under the M&T agreement, a trader who awards its contracts to M&T makes a confirmation statement that the transferred contract is the only agreement between the customer and the trader regarding the transaction. The merchant also explains that the amount identified in the sales contract as “acomphes” is correct and that it was actually received from the customer by the merchant in the form of a check or cash. An “ancillary sales agreement” between the merchant and the customer is contrary to these provisions and could compromise your credit relationship. You`ll be surprised to learn that distribution and R&I employees sometimes make “accessory appointments” with the customer, where the dealer lends a small amount of money to the customer if necessary to award the loan and close the deal. Your first reaction might be “but it doesn`t happen in my dealership,” and while we hope it`s true, it happens more often than it should have. In addition, these “ancillary agreements” could contravene the assurances given by the customer when signing the sales contract. For example, the Reynolds and Reynolds Massachusetts Standard Form Motor Vehicle Purchase Agreement (“P&S”) states that “Buyer represents and warrants that no loan other than the one mentioned above has been granted by the Dealer.” If your employees enter into “ancillary agreements” with the customer, your reseller extends the customer`s “credit” in violation of P&S.
As soon as you make a “secondary statement” regarding the renewal of the credit, this “presentation” by the customer in P&S is no longer accurate. Sidebar Rule is a principle of English law that allows an order or decision of the Tribunal to be issued without a formal request. For example, an order to plead within a specified period of time. Previously, rules or orders were only made in court at the request of lawyers on the sidebar. In Australia, side letters are becoming more frequent due to changes to federal labour law by the WorkChoices Act. WorkChoices limits the collective agreements that parties can register for the application of labour courts and also requires that ACAs be strictly limited to labour-related matters. The inclusion of minor clauses not related to the workplace (e.g. B the statement of royalties) may lead to the inapplicability of a CBA. In response, many unions and employers use side letters to reach agreement on non-labour issues and do not register these secondary letters with the federal government – and rely on customary law to enforce the ancillary letters.  We recommend that you inform your employees of the dangers of this practice. .