Legal Files (68)

There's no uniform code of ownership within the EEC, but each country has documents that will protect you in your transactionAfter John Draneas's learned article (April, p. 34) on the title pitfalls of buying a collector car in the U.S., here's a European perspective. Or, as the exam question might have read: "How is your answer different if you were buying the car of your dreams in the U.K., France, Germany, Italy, Switzerland, or The Netherlands?In spite of the European Union (which doesn't include Switzerland, Norway, and Finland), each country still retains its own system of title, registration, and licensing…
We are addressing provenance created by the owner after a car's acquisition, and whether the costs involved can be used to reduce the gain on the saleMany collectors are selling cars they have owned for several years, often for substantially more money than they paid for them. In many cases, they purchased these cars years ago when they weren't particularly sought after or valuable, usually because they just liked the cars and wanted to own and use them. Now that the market has made them into very valuable assets, they are cashing in on their investments and finding that the…

Track Day Insurance

Written by July 2009
High Performance Driver Education coverage insures bad things don't happen to good people (that's you) during track daysHere's a man-bites-dog twist to track day crash liability concerns, resulting from a crash at a Dodge Viper Owners Invitational track event at Las Vegas Motor Speedway. Dodge sponsors such events periodically, and invites Viper owners to participate. The sessions include classroom instruction, track time, and professional driving school instructors.According to reports from knowledgeable sources, here is the surprising story. A novice (never before on any track) Viper owner, who just happened to be a state court judge, was paired up with an…
To rub salt in the wound, the appellate court rejected the Plaintiff's arguments that he should get a new trialA few years ago, I was in Los Angeles for a professional conference and had a free day, so I visited the Nethercutt Museum in nearby Sylmar. The museum is owned and operated by The Nethercutt Collection, a charitable foundation formed by J. B. Nethercutt, who along with his aunt had founded Merle Norman Cosmetics. After his death, his son, Jack, assumed control of the foundation.I will long remember the amazing facility, the free admission (thanks to the endowment from J.…
We were surprised to see that the Ferrari's title had Rick's signature forged on it, and the Italian shipping company was listed as the new owner.Dear "Legal Files": My husband Rick and I, along with our friends, have encountered a bizarre set of circumstances with Shakespearean elements of trust and betrayal, possible fraud and forgery, and even a hurricane. We think it will interest you.Having enjoyed ourselves immensely on the Copperstate 1000 and the Colorado Grand, the temptation to try an international rally was strong. When the opportunity to attend a vintage car rally in Italy came up last spring,…
A better alternative for Californians may be the use of a Montana business entity, because Montana would allow a legal, tax-free registration of the carThe March 2009 "Legal Files" regarding sales tax triggered two helpful responses from attorneys, which suggested the need for a follow-up on this subject of great interest to car collectors.It's not worth going to jailExcellent advice came from Jon Ash, a Bend, Oregon, attorney with 37 years of experience in criminal law:"I read your article with interest. It brought back memories of a federal investigation I was involved in which resulted in the indictment of my…
Take due diligence steps to protect yourself, even though that interferes with the red mist that materializes when you find the collector car of your dreamsMost states issue certificates of title for cars, often referred to as "pink slips" because of their color (in California, at least; other states have different hues). They are considered foolproof evidence of ownership of the car, although recent incidents suggest that may not always be true. Unfortunately, many states stop issuing certificates of title for cars over a certain age-15 years being a common cutoff-which is quite young by car collector standards. And the…
Five states do not levy sales taxes-Alaska, Delaware, Montana, New Hampshire, and Oregon. Oregon is the winner hereEver feel like you're being taxed to death? Everyone feels that way on April 15, but another way to feel the pinch is to buy a collector car and stop by your local DMV to get it licensed.Consider a hypothetical SCMer taxpayer. He finds the right Ferrari Daytona coupe owned by a motivated seller. After modest negotiations (and thorough pre-purchase inspections by Ferrari experts to confirm its authenticity, history, and mechanical, body, chassis and cosmetic condition), he writes a check for $250,000. A…
The transporter demanded payment, but when Ric produced his receipt from the broker marked "Paid in Full," he drove off in a huffSometimes it seems like our old cars spend more time being transported by others than transporting themselves. At first glance, it might seem that having your car buttoned up on a hauler or in a container would be simple and safe. But as you will read below, for both local and international shipping, that's not always the case.Let's start locally. SCMer Ric Tiplady always wanted a Citroën Deux Chevaux, so on a recent trip to France, he engaged…
Heirs of Macy's grandson question the validity of a $0 bid auction and the story of a Duesenberg trapped by a too-small elevatorState laws commonly give powerful protection to mechanics who work on cars and garage keepers who store them, recognizing that they often need special powers to help them get paid. Typically, these laws entitle them to retain possession of the car until they have been paid in full. If not paid after a specified minimum time, they are then free to sell the car to the highest bidder, and the purchaser gets good title to the car. The…
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