GNYADA March 2015 Newsletter

5 Court Upholds Revocation of Inspection Licenses

Dealers are advised to establish and distribute a written policy prohibiting any unlawful activity in connection with inspections. State regulations specify that, among other things, cer- tified inspectors shall not : Leave his or her certificate unattended; or Use any other inspector's certificate; or Allow his or her certificate to be used by any other person. This item is intended as information only; for specific advice, contact your attorney. This article was provided by Stuart A. Rosenthal, Esq. n n n

upheld all of the DMV’s findings, cit- ing the importance of protecting the integrity of the inspection process. The hearing officer was not persuad- ed that the phony inspections were unauthorized, stating that the “alleged lack of awareness of the miscon- duct…does not relieve [the licensed inspector or the inspection station] of the responsibility for inspection activ- ities conducted at the facility.” In addition to the license revocations, the judge upheld a fine of $350 per violation against both the inspection station and the licensed inspector. The maximum fine could have been $1,000 per violation.

A State Supreme Court Judge has upheld the revocation of both the inspection station license and the inspector’s license of a local repair shop that was used in 17 fraudulent emissions inspections (“clean scans”). The Bronx repair shop and the inspector were also indicted and each fined $5,950 for the fraudulent inspections. The licensed inspector (who was also the owner of the repair shop) claimed another employee used his certificate to conduct the phony inspections. A DMV hearing officer found the inspection station liable for the fraud- ulent inspections and the Court The New York Department of Motor Vehicles (Vehicle & Traffic Law §415) requires dealerships to have a current original Surety Bond on file with the DMV at all times. Failure to comply will result in the suspension of your dealer license. Surety Bonds are renewed every two years, but can be cancelled within 60 days for nonpayment of premium. How much is a Surety Bond? GNYADA has secured a premium with an A+ rated company for new car bonds at just $300 for two years. Unlike other companies, no financials or credit checks are required. Every dealership pays the same rate, unlike other bond issuers who rate each bond application according to individual case risk (including your financial credentials and credit score) and charge the premium accordingly. We have heard of dealers paying near- ly $1,000 for dealership bonds with

6 About Those Surety Bonds

Flat rate pricing No application on renewal Automatic renewal

other companies, depending on the bond amount, whether the bonds are rolled into other insurance packages, and financing options.

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In addition to new car Surety Bonds, GNYADA can assist with other bond needs. Whether you need a bond for your utility company, street permits, second-hand dealer license, or even for games of chance—we’re here to help! Contact Jennifer at the Association with any questions at

Why should I choose a Surety Bond with GNYADA?

Simple application for new bonds No financial statements required Fast turnaround; bonds can be obtained within 24 hours Riders to amend name and/or address at no additional charge No credit bureau checks

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718.746.5900, x235, or jennifer@gnyada.com .

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • March 2015

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