Action Update Newsletter

Iowa Estimate Disclosure Law Requirements

Iowa law requires motor vehicle repair facilities to follow these estimate and repair disclosure rules: Estimate Options: Customers must be offered the choice of a written or oral estimate for any repair exceeding $50. Non-OEM “Crash” Parts: Estimates …

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Electric Fuel Excise Tax Inspections Underway

The Iowa Department of Agriculture and Land Stewardship’s Weights and Measures Bureau is conducting inspections at automobile dealerships and other businesses to verify compliance with Iowa’s Electric Fuel Excise Tax requirements. Iowa dealerships with EV charging stations or …

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Don’t Let Unclaimed Property Linger

The Great Iowa Treasure Hunt is Iowa’s program for returning abandoned or forgotten money and other property to its rightful owners. For Iowa businesses, including automobile dealerships, it means an obligation to identify and report property belonging to …

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Be Cautious When Acquiring Canadian Vehicles

Dealers should exercise caution when acquiring vehicles previously titled in Canada. Some have never been sold “at retail” and registered, or sufficient documentation of that history may be unavailable or difficult to obtain. That means you may be …

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Back to Basics: Dealer Plates

There are two types of dealer plates under Iowa law: standard plates and hauling and towing plates. The standard d-plate can be used: For the dealer’s private or business purposes if the vehicle is in the dealer’s inventory …

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Dualing Provisions Important in Buy-Sell Market

As dealership consolidation and buy/sell activity continues, questions about “dualing” franchises frequently arise. Iowa Code Chapter 322A addresses the issue with two important provisions. Iowa Code § 322A.22 renders void any franchise provision that prohibits or restricts a dealer …

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Contracts Made By Minors Unenforceable

Under Iowa law, contracts are only enforceable against a person of legal majority, which means the person has: Turned 18 or Gotten married. Why it matters: A contract made by a minor is voidable by the minor until a …

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Know Artisan’s Lien Rules

Iowa law gives motor vehicle repair facilities a powerful tool to secure payment for repairs, the artisan’s lien (sometimes referred to as a mechanic’s lien). The protection provided by that tool can disappear if you don’t follow the …

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Iowa Law Limits Off-Site Sales, Displays 

Off-site sales and display events can be an effective way to showcase inventory and connect with customers, but Iowa law places strict limits on what inventory dealers can display, where events can occur, and how sales are completed. …

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