2006 AUDIT BBB AUTO LINE - Federal Trade Commission
[Pages:100]2006 AUDIT
OF
BBB AUTO LINE
INCLUDING: THE STATE OF FLORIDA
AND THE STATE OF OHIO
Prepared by:
MORRISON AND COMPANY 1339 Tatum Gulf Road
Cloudland, Georgia 30731-5128 Telephone and Fax: 1-706-398-3789 E-mail Address: jimkitty@
TABLE OF CONTENTS
TABLE OF CONTENTS
PREFACE: INCEPTIVE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . Preface, Page 1 SECTION 01: INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . Preface, Page 1 SECTION 02: STATUTORY REQUIREMENTS . . . . . . . . . . . . . Preface, Page 2 SECTION 03: CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . Preface, Page 2 SECTION 04: FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preface, Page 4 A. Manufacturer Warranty Materials . . . . . . . . . . . . . . . . Preface, Page 6 B. Office Practices and Procedures . . . . . . . . . . . . . . . . Preface, Page 7 C. Record-Keeping Procedures . . . . . . . . . . . . . . . . . . . Preface, Page 7 D. Comparative Statistical Analysis . . . . . . . . . . . . . . . . Preface, Page 7 SECTION 05: RECOMMENDATIONS AND CONCLUSIONS . . Preface, Page 7
CHAPTER 01: MANUFACTURER WARRANTY MATERIALS . . . . . . Chapter 1, Page 1 SECTION 01: INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 1 SECTION 02: STATUTORY REQUIREMENTS . . . . . . . . . . . . Chapter 1, Page 2 SECTION 03: CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 3 SECTION 04: FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 6 A. AM General Sales Corporation (Hummer) . . . . . . . Chapter 1, Page 11 B. American Honda Motor Company . . . . . . . . . . . . . . Chapter 1, Page 12 C. Ford Motor Company . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 12 D. General Motors . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 13 E. Hyundai Motor America . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 13 F. Isuzu Motors America . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 14 G. Kia Motors America . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 15 H. Land Rover of North America . . . . . . . . . . . . . . . . . Chapter 1, Page 15 I. Nissan North America (Infiniti and Nissan) . . . . . . . Chapter 1, Page 15 J. Saab Cars USA . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 16 K. Saturn Corporation . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 16 L. Volkswagen of America (Audi and Volkswagen) . . . Chapter 1, Page 17 M. Workhorse Custom Chassis . . . . . . . . . . . . . . . . . . Chapter 1, Page 18 SECTION 05: RECOMMENDATIONS . . . . . . . . . . . . . . . . . . Chapter 1, Page 18 A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 18 B. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 19 C. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 19 SECTION 06: CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . Chapter 1, Page 20
CHAPTER 02: OFFICE PRACTICES AND PROCEDURES . . . . . . . Chapter 2, Page 1 SECTION 01: INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 1 A. BBB AUTO LINE Forms . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 1 B. Informal Dispute Settlement Procedure . . . . . . . . . . Chapter 2, Page 3 01. Conciliation . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 3 02. Mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 3
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03. Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 4 a. Preparation for Arbitration Hearing . . . Chapter 2, Page 5 b. Arbitration Hearing . . . . . . . . . . . . . . . . Chapter 2, Page 5 c. Arbitration Decision . . . . . . . . . . . . . . . Chapter 2, Page 6 d. Post Arbitration Decision . . . . . . . . . . . Chapter 2, Page 6
SECTION 02: STATUTORY REQUIREMENTS . . . . . . . . . . . . Chapter 2, Page 7 SECTION 03: CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 7
A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 7 B. California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 8 C. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 8 D. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 9 SECTION 04: FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 9 A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 9
01. Office Site . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 9 a. Facilities . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 10 b. Personnel . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 10
B. California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 11 01. Office Site . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 11 a. Facilities . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 11 b. Personnel . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 11 02. Arbitration Hearing Process . . . . . . . . . . . . Chapter 2, Page 12 a. Openness of Arbitration Hearing . . . . Chapter 2, Page 12 b. Effectiveness of Arbitration Hearing . Chapter 2, Page 12 c. Decision-Making . . . . . . . . . . . . . . . . Chapter 2, Page 12
C. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 13 01. Office Site . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 13 a. Facilities . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 13 b. Personnel . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 13 02. Arbitration Hearing Process . . . . . . . . . . . . Chapter 2, Page 14 a. Openness of Arbitration Hearing . . . . Chapter 2, Page 14 b. Effectiveness of Arbitration Hearing . Chapter 2, Page 14 c. Decision-Making . . . . . . . . . . . . . . . . Chapter 2, Page 15
D. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 15 01. Office Site . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 15 a. Facilities . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 15 b. Personnel . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 16 02. Arbitration Hearing Process . . . . . . . . . . . . Chapter 2, Page 16 a. Openness of Arbitration Hearing . . . . Chapter 2, Page 16 b. Effectiveness of Arbitration Hearing . Chapter 2, Page 17 c. Decision-Making . . . . . . . . . . . . . . . . Chapter 2, Page 17
SECTION 05: RECOMMENDATIONS . . . . . . . . . . . . . . . . . . Chapter 2, Page 17 SECTION 06: CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 18
A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 18
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B. California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 18 C. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 19 D. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 2, Page 19
CHAPTER 03: RECORD-KEEPING PROCEDURES . . . . . . . . . . . . . Chapter 3, Page 1 SECTION 01: INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 1 SECTION 02: STATUTORY REQUIREMENTS . . . . . . . . . . . . Chapter 3, Page 1 A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 1 B. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 2 C. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 2 SECTION 03: CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 2 SECTION 04: FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 2 PART I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 3 PART II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 21 SECTION 05: RECOMMENDATIONS . . . . . . . . . . . . . . . . . . Chapter 3, Page 33 SECTION 06: CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . Chapter 3, Page 33
CHAPTER 04: COMPARATIVE STATISTICAL ANALYSIS . . . . . . . . Chapter 4, Page 1 SECTION 01: INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 1 SECTION 02: STATUTORY REQUIREMENTS . . . . . . . . . . . . Chapter 4, Page 2 SECTION 03: CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 2 A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 2 B. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 4 C. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 4 SECTION 04: FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 4 A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 4 01. General Information . . . . . . . . . . . . . . . . . . . Chapter 4, Page 5 02. Consumer Knowledge about Program . . . . . Chapter 4, Page 5 03. Ineligible/Withdrawn Cases + . . . . . . . . . . . . Chapter 4, Page 8 04. Forty Day Time Limit + . . . . . . . . . . . . . . . . . Chapter 4, Page 8 05. Resolution of Cases + . . . . . . . . . . . . . . . . Chapter 4, Page 11 06. Mediated Cases + . . . . . . . . . . . . . . . . . . . Chapter 4, Page 13 07. Arbitrated Cases+ . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 16 08. Consumer Satisfaction with Arbitrators . . . Chapter 4, Page 21 09. Consumer Satisfaction with BBB . . . . . . . . Chapter 4, Page 25 B. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 27 01. General Information . . . . . . . . . . . . . . . . . . Chapter 4, Page 27 02. Consumer Knowledge about Program . . . . Chapter 4, Page 27 03. Ineligible/Withdrawn Cases + . . . . . . . . . . . Chapter 4, Page 31 04. Forty Day Time Limit + . . . . . . . . . . . . . . . . Chapter 4, Page 31 05. Resolution of Cases + . . . . . . . . . . . . . . . . Chapter 4, Page 34 06. Mediated Cases + . . . . . . . . . . . . . . . . . . . Chapter 4, Page 36 07. Arbitrated Cases+ . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 39
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08. Consumer Satisfaction with Arbitrators . . . Chapter 4, Page 44 09. Consumer Satisfaction with of BBB . . . . . . Chapter 4, Page 47 C. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 50 01. General Information . . . . . . . . . . . . . . . . . . Chapter 4, Page 50 02. Consumer Knowledge about Program . . . . Chapter 4, Page 50 03. Ineligible/Withdrawn Cases + . . . . . . . . . . . Chapter 4, Page 53 04. Forty Day Time Limit + . . . . . . . . . . . . . . . . Chapter 4, Page 53 05. Resolution of Cases + . . . . . . . . . . . . . . . . Chapter 4, Page 56 06. Mediated Cases + . . . . . . . . . . . . . . . . . . . Chapter 4, Page 58 07. Arbitrated Cases+ . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 61 08. Consumer Satisfaction with Arbitrators . . . Chapter 4, Page 66 09. Consumer Satisfaction with BBB . . . . . . . . Chapter 4, Page 69 SECTION 05: RECOMMENDATIONS . . . . . . . . . . . . . . . . . . Chapter 4, Page 72 A. National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 72 B. Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 72 C. Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 72 SECTION 06: CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . Chapter 4, Page 72
CHAPTER 05: SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 5, Page 1 SECTION 01: INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . Chapter 5, Page 1 SECTION 02: STATUTORY REQUIREMENTS . . . . . . . . . . . . Chapter 5, Page 1 SECTION 03: CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 5, Page 1 SECTION 04: FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 5, Page 1 A. Manufacturer Warranty Materials . . . . . . . . . . . . . . . Chapter 5, Page 1 B. Office Practices and Procedures . . . . . . . . . . . . . . . Chapter 5, Page 1 C. Record-Keeping Procedures . . . . . . . . . . . . . . . . . . Chapter 5, Page 2 D. Comparative Statistical Analysis . . . . . . . . . . . . . . . Chapter 5, Page 2 SECTION 05: RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . Chapter 5, Page 2 A. Manufacturer Warranty Materials . . . . . . . . . . . . . . . Chapter 5, Page 2 B. Office Practices and Procedures . . . . . . . . . . . . . . . Chapter 5, Page 2 C. Record-Keeping Procedures . . . . . . . . . . . . . . . . . . Chapter 5, Page 3 D. Comparative Statistical Analysis . . . . . . . . . . . . . . . Chapter 5, Page 3 SECTION 06: CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . Chapter 5, Page 3
APPENDIX A: MAGNUSON-MOSS WARRANTY ACT . . . . . . . . . Appendix A, Page. 1
APPENDIX B: 16 C.F.R. PART 703 . . . . . . . . . . . . . . . . . . . . . . . . Appendix B, Page. 1
APPENDIX C: FLORIDA STATUTES CHAPTER 681 . . . . . . . . . . Appendix C, Page. 1
APPENDIX D: FLORIDA ADMINISTRATIVE CODE ANNOTATED Appendix D, Page. 1
APPENDIX E: OHIO REVISED CODE ANNOTATED . . . . . . . . . . Appendix E, Page. 1
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APPENDIX F: OHIO ADMINISTRATIVE CODE . . . . . . . . . . . . . . . Appendix F, Page. 1 APPENDIX G: CONSUMER SURVEY QUESTIONS . . . . . . . . . . . Appendix G, Page 1 APPENDIX H: FORM NAMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix H, Page 1
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PREFACE INCEPTIVE FINDINGS
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