DEALER SERVICES CORPORATION UCC1 Code is not enough in California
Michael Grissom Reporting from San Diego, California
"Mr. Fariba and his legal team score one for California Auto Dealers"The way I see UCC1 is base upon your legal standing. Discover DSC do you have a legal standing in California? I think not.
If you are a foreign company doing business in a state that requires your business to act a certain way such as get a lenders license, or use a certain name like Discover DSC, so that other businesses the public and Goverment agency is not harmed by the practices of this foreign company such as usurious rates, as in the unfair business practices of Dealer Services Corporation, DSC, Discover DSC, or what ever you call yourself now days.
These are real issues, that you have been able to avoid until you took Mr. Fariba vehicles. You see we have real rules,regulation,and procedures that we all must abide by in California and it seems like you are about to find out the hard way.
Many dealers are asking how long will Discover DSC get away with there crimes, we say no more, the jury's finding that in San Diego, California October 2005, Discover DSC had Actual Knowledge that California Auto Sales was substantially engaged in selling goods that belonged to others.
Let's take a look at how Discover DSC chooese to explain the law, this is what John C. Wick General Counsel for Discover DSC,has to say.
BY MR. NORMANDIN:Q. Did Mr. Silver attempt to explain the position of his client?A. He did.Q. And what did he say?A. He explained that these vehicles, the titles
325BY MR. NORMANDIN:Q. After you explained why the title doesn1t matter, did Mr. Silver have any other comments?A. We discussed the nature of the facts that we were dealing with, and he indicated that his client may bein abad way, if you will. MR. TURNER: Objection, Your Honor,that's an offer to compromising to proffer.
THE COURT:I'm goingto tell both counsel to not get into any such information.I don't construe that as being in that vein.Question. MR. NORMANDIN:Yes.
326BY MR. NORMANDIN:Q. What was the tone of your conversation with Mr. Silver?A. It was very friendly.Q. Animosity, bad language, threats, anything like that?A. No. Very collegial.Q. Did you suggest --did you make any suggestion to Mr. Silver about a financing statement?A. I did.Q. What did you tell Mr. Silver about a financing statement?A. I suggested he file one to protect his client's interests.Q. Why did you tell him to do that?A. It's --it doesn't affect my position in any way to the cars, so I'm offering advice to another lawyer what he can do to protect his client against other third parties that may not have a filing or some other interest.Q. Why do you think it didn't affect your status?A. Because -MR. TURNER: Objection, improper opinion. THE COURT: Overruled. THE WITNESS: Because we were already filed on ablanket lien on the inventory. BY MR. NORMANDIN:Q. Then filing behind you wouldn't affect yours; is that what you're saying?
327A. That's right.Q. SO you weren't surprised when you found a copy of the financing statement after your conversationweretyou?A. No.Q. Did you --did Mr. Silver ever tell you thatDealer Services was aware back in October of 2006 MR. TURNER: Objectiont leading. THE COURT: It does sound leading.BY MR. NORMANDIN:Q. Did Mr. Silver ever discuss Dealer Services' alleged awareness of what kind of business California Auto Sales and Leasing was in?A. No.Q. Did he ever say that they were --that Dealer Services was aware of the consignment ._-was aware that California Auto Sales and Leasing was a consignment business?MR. TURNER: Objectionleading.tTHE COURT: Sustained. BY MR. NORMANDIN:Q. Did you ever --did you tell Mr. Silver that DSC had conned Mr. Fariba?A. No.Q. Did you ever say that to anyone?A. No.Q. Is that a word that you would have used?A. No.
328MR. NORMANDIN: No further questions, Your Honor.CROSS-EXAMINATIONBY MR. TURNER:Q. Good afternoon, Mr. Wick.A. How you doing?Q. You discussed on direct examination that you drafted the language in the UCC statement; is that correct?A. I did.Q. And that your intent was to place a lien on the borrower's assets; a blanket lien I think you said; is that correct?A. That's correct.Q. And you went on to say that that includes everything, all inclusive, every stapler, every file cabinet, everything they own?A. That's correct.Q. Was it your intent to place a lien by that filing on other people's assets? Not the dealers or not the borrowers?A. No. MR. SILVER: Thank you. No further questions.
If you always do, what you always done, you will always get what you always got.
Stand together, against Discover DSC who has no Standing in California against California Law. THE END....