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Vol. 7, Issue 7
July 1, 2016

MINORS AT THE DEALERSHIP

SALES TO MINORS

Summertime is a popular time for high school students and recent high school graduates to visit dealerships seeking to purchase new or used cars.  If any of these students or graduates are minors (anyone under the age of 18) then you must be aware of the special rights and privileges which allow minors to void contracts of sale.
 
Minors have the right to disaffirm contracts for the purchase or lease of a motor vehicle and demand a full refund where the contract is executed before the purchaser or lessee reaches 18 years of age.  Dealers can avoid this situation by having someone over the age of 18, preferably a parent or guardian, co-sign the buyer's/lease order, bill of sale and retail installment contract/lease agreement.  If a person over the age of 18 signs the agreements then if the minor attempts to void the contract the co-buyer becomes obligated to fulfill the terms of the agreement and make all loan/lease payments. 
 
The Department of Motor Vehicles permits minors to title and/or register vehicles in their own name.  However, if the vehicle is financed or leased, check with the lending institution to see if they require a co-buyer on the title before you submit the registration and title paperwork to DMV for processing.

MINORS IN THE WORKPLACE

In New York, minors (anyone under the age of 18) may be employed, subject to certain restrictions, if he/she presents an employment certificate or permit commonly known as "Working Papers".
 
Even if the minor is otherwise permitted to work, there are limitations on the type of work that may be performed.  Generally, any one under the age of 18 may not work with power tools or mechanical tools,  other than simple office equipment, unless the minor is enrolled in a technical training or  apprenticeship  program.  Minors aged 14 or 15 are limited to delivery and clerical work only.  
 
The following is a summary of New York's current child labor standards.
 
Permitted Working Hours For Minors
    Age    Industry/Occupation Maximum
Daily Hours
Maximum
Weekly Hours
Maximum
Days per Week
Permitted Hours
Minors - When School is in Session
14 and 15 All occupations except farm
work, newspaper carrier
and street trades.
3 Hours on school days
8 Hours on other days
18 Hours
*
6 7 AM to 7 PM
16 and 17 All occupations except farm work, newspaper carrier and street trades. 4 Hours on days preceding school days (i.e., Mon., Tues., Weds., Thurs.)**
8 Hours on Fri., Sat., Sun. and Holidays
****
28 Hours
****
6
****
6 AM to 10 PM
***
Minors - When School is NOT in Session
14 and 15 All occupations except farm work, newspaper carrier and street trades. 8 Hours 40 Hours 6 7 AM to 9 PM
June 21 to Labor Day
16 and 17 All occupations except farm work, newspaper carrier and street trades. 8 Hours
****
48 Hours
****
6
****
6 AM to Midnight
****
Minors - NOT Attending School
16 and 17 All occupations except farm work, newspaper carrier and street trades. 8 Hours
****
48 Hours
****
6 Hours
****
6 AM to Midnight
****





*  Students 14 and 15 enrolled in an approved work study program may work 3 hours on a school day, 23 hours in any one week when school is in session.

** Students 16 and 17 enrolled in an approved Cooperative Education Program may work up to 6 hours on a day preceding a school day other than Sunday or Holiday when school is in session as long as the hours are in conjunction with the Program.

*** May work 6 AM to 10 PM or until midnight with written parental and educational authorities consent on day preceding a school day and until midnight on day preceding a non-school day with written parental consent.

****  This provision does not apply to minors employed in resort hotels or restaurants in resort areas.

A schedule of hours of work for minors under 18 years of age must be posted at the dealership.

MINORS USING DEALERSHIP VEHICLES
 
     The U.S. Department of Labor allows only occasional and incidental on-road, on-the-job driving under certain conditions.  The following is a summary of the federal rule.
 
     Sixteen-year-olds may not drive at all on public roadways, but may drive on dealership property.  Seventeen-year-olds may drive on public roads while on the job, if they:  
  1. Hold a valid state driver's license;
  2. Have completed a state-approved driver education course;
  3. Are instructed that seat belts must be used; and
  4. Have no record of a moving violation at the time of hire.
 Motor vehicles being driven must:
  1. Not exceed 6,000 lbs. gross vehicle weight;
  2. Be equipped with a seat belt; and
  3. Not be used for towing vehicles.
Driving is permitted if it is:

1.   Restricted to daylight hours;
2.  Within a 30-mile radius of the place of employment; and
3.   Occasional and incidental (i.e. no more than 1/3 of an employee's work time/day nor more than 20% of an employee's work time/week.
 
     Seventeen-year-olds may not be employed as delivery or shuttle drivers, but may make limited daily trips for delivery and passenger transport:

1.         Up to 2 trips/day delivering goods to customers, but vehicle deliveries are not subject to this limit;
 
2.         Transport of up to 3 passengers, including employees, with the transport of non-employee passengers limited to 2 trips/day; and  
 
3.          Certain deliveries are prohibited, including route deliveries or sales, urgent, time-sensitive deliveries, or the for-hire transportation of property, goods, or passengers.  Urgent, time-sensitive deliveries are trips which, because of such factors as customer satisfaction, the rapid deterioration of the quality or change in temperature of the product, and or economic incentives, are subject to time-lines, schedules, and/or turnaround times which might impel the driver to hurry to complete delivery.
    
     Prohibited trips include, but are not limited to, the delivery of materials under a deadline (e.g., deposits to a bank at closing) and the shuttle of passengers to and from transportation depots to meet transport schedules.  Urgent time-sensitive deliveries do not depend on the delivery's points of origin and termination, and may include the delivery of people and things to the employer's place of business or from that business to some other location. 
 
     For more information on minors  please call Stevan LaBonte at 516-280-8580.  

DMV AUDITS DEALER 
REGISTRATION  REFUND PROCEDURES

  New York State Department of Motor Vehicles' Director of Vehicle Safety Field Services, Chris Ayers, announced at a recent meeting held by the New York State Automobile Dealers Association that DMV is regularly auditing dealers to verify compliance with the rules on refunding registration fee over-payments.  

DMV allows dealers to charge customers an estimated vehicle registration fee instead of calculating the actual registration fee. However, when a dealer estimates the fee they must also refund any  over-payment  to the customer within  sixty (60) days of securing the registration and title.

Several dealers have been found to be in violation of the DMV regulations by either not issuing refunds or failing to issue refunds within the sixty (60) day time limit.   DMV can issue fines up to $1,000 per violation in addition to ordering the refund of the  over-payment  to the customer.  DMV can suspend or revoke the dealer's participation in the Dealer Plate Issuance Program for a violation of this process.
  
If your dealership estimates registration fees make sure that your billing department is regularly issuing refunds to customers within sixty (60) days.  Also, make sure that you include the following disclosure on all contracts of sale:

"The amount indicated on this sales contract or lease agreement for registration and title fees is an estimate.  In some instances, it may exceed the actual fees due the commissioner of motor vehicles.  The dealer will automatically, and within sixty days of securing such registration and title, refund any amount overpaid for such fees."

If you have any questions about registration fee refunds or any other DMV matters please contact Stevan LaBonte at 516-280-8580.
Should you have any questions or need advice on anything related to dealership operations please do not hesitate to give me a call at 516-280-8580 or send me an e-mail to slabonte@labontelawgroup.com.  Your questions will be answered promptly.
Sincerely,

Stevan H. LaBonte
LaBonte Law Group, PLLC
100 Ring Road West, Suite 108
Garden City, NY 11530

516.280.8580 (Phone) 
631.794.2434 (Fax)