STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS

STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS =-= = = -=- = - = = -= = =-= = = o = == -- =================== IN RE: THE INVESTIGATION OF WEST PALM BEACH. ACQUISITIONS~ INC., d/b/a WEST PALM BEACH KIA, AGENCY FILE NO. L12-3-1077 RESPONDENTS, I ASSURANCE OF VOI.UNT ARY COMPLIANCE FOR WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA Pursuant to the provisions of Chapter 501, Part II, Florida Statutes, the Office of the Attorney General, Department of Legal Affairs, State of Florida ("Attorney General") has investigated the business practices of WEST PALM BEACH ACQUISITIONS, INC., d/b/a \VEST PALM BEACH KIA (hereafter corporately and alternately referred to as the "RESPONDENT"). The RESPONDENT agrees to enter into this Assurance ofvoluntary Compliance (AVC), without an admission that it has violated the law in order to amicably resolve the Attorney General's investigation of the RESPONDENT, pursuant to Agency Case No. L12-3-l077 and Section 501.207(6) ofthe Florida Statutes. INITIALAllr-_~'------- --

The Attorney General, by the signature of the South Florida Bureau Chief affixed hereto, does hereby accept the instant AVC and in tum terminates the Attorney General's investigation as it concerns the RESPONDENT by virtue of the authority vested in the Office of the Attorney General, pursuant to Section 50 1.207( 6) of the Florida Statutes. I. ATTORNEY GENERAL'S ALLEGATIONS (WITHOUT ADMISSION OF WRONGDOING OR WRONGFUL INTENT) 1. The Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, is an active State of Florida corporation established in or around 2004, with its principal oilice located at 1575 South Military Trail West Palm Beach, Palm Beach County, 33415. The RESPONDENT sells and/or leases used and new automobiles to consumers in Florida and throughout the United States. 2. Beginning in or around at least 2009, the Office ofthe Attorney General for the State of Florida began receiving complaints from consumers who claimed that: 1) the RESPONDENT used bait-and-switch tactics in marketing its automobiles; 2) the RESPONDENT falsely stated in advertisements to the public that WEST PALM BEACH KIA would take $9,000.00 off any vehicle in stock; 3) the RESPONDENT falsely stated in advertisements to the public that financing was guaranteed for consumers who were paid a salary of at least $350.00 weekly; 4) the RESPONDENT falsely advertised tor sale certain vehicles at a discounted rate, but routinely failed to have the advertised vehicle in stock; and 5) the RESPONDENT failed to clearly disclose the full tetms and conditions of offers regarding the sale of vehicles in its advertisements to the public made on behalf of WEST PALM BEACI I KIA. 3. The RESPONDENT denies any v.tongdoing and makes no admission of any violation of Florida Statute 501, Part II, or any other law, statute or regulation of the State of Florida. 2 INITIALS~ ---

II. NON-MONETARY TERMS AND CONDITIONS 4. The Respondent, WEST I> ALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, agrees to refrain from violating the provisions of Chapter 501, Part II, of tht.:: Florida Statutes, the Florida Deceptive and Unfair Trade Practices Act, conduct business in the State of Florida in compliance with the provisions of Chapter 501, Part II, of the Florida Statutes, the Florida Deceptive and Cnfair Trade Practices Act, and specifically agrees to the following as it relates to any and all consumer offers, incentives and/or inducements extended to the public by the Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, to use its services, purchase and/or lease new and used automobiles and/or to come to the WEST PALM BEACH KIA dealership: A. Ensure that all consumer automobile sales, leases, trade-ins and trade-in values and/or other offers, incentives and/or inducements have no use and/or qualification restrictions upon them which do not clearly and conspicuously detail the specific terms of and/or restrictions associated with the offer in an obvious location which can be readily seen by consumers; B. Place all terms and/or restrictions associated with all consumer automobile sales, leases, trade-ins and trade-in values and/or other offers, incentives and/or inducements in bold font directly under the offer in a font size of no less than two (2) sizes smaller than the font in the primary offer, and in any event, no smaller than an eight (8)-sized font; C. Ensure, as to any radio and/or television marketing or advertisements used by WEST PALM BEACH KIA, that the full terms and conditions of all consumer 3 initials j)_~

automobile sales, leases, trade-ins and trade-in values and/or other offers, incentives and/or inducements are stated clearly and audibly and that no music and/or other background noise is played at the time that the terms and conditions of the consumer automobile sales, leases, trade-ins and trade-in values and/or other offers, incentives and/or inducements are being stated; D. Ensure when the full tenns and conditions of consumer automobile sales, leases, trade-ins and trade-in values and/or other offers, incentives and/or inducements are stated during any radio and/or television marketing or advertising used by WEST PALM BEACH KIA that all of the terms are stated together and at the same time. E. Ensure that any new automobiles specifically offered through any marketing or advertising tool to the public by WEST PALM BEACH KIA are in sufficient stock during the advertised period and that if said vehicles are not in stock during the advertised period and no limiting language such as "limited quantities" is stated in the advertisement that the dealership either: 1) extends the offer for the sale of the particular vehicle to &1 inquiring consumer until the advertised vehicle is made available by WEST PALM BEACH KIA; or 2) provides a comparable vehicle of equal or greater MSRP and with similar specifications for the same advertised price to inquiring consumers; F. Ensure that all salespersons and other individuals conducting any business on behalf of WEST PALM BEACH KIA receive proper training as to the requirements of the Florida Deceptive and Un1awful Trade Practices Act, Section 501, Part II, Florida Statutes; 4 INITIAL~,

G. Ensure that all salespersons and other individuals conducting any business on behalf of WEST PALM BEACH KIA receive proper training regarding acceptable sales practices and that they be notified that they are prohibited from engaging in any behavior which is outside of acceptable sales practices; and H. Ensure that all salespersons and other individuals conducting any business on behalf of WEST PALM BEACH KIA be instmcted not to engage in and/or participate in any manner in sales tactics that violates any Florida statute, including, but not limited to, 501, Part II, Fla. Stat., the Florida Deceptive and Unfair Trade Practices Act. Ill MONETARY TERMS AND CONDITIONS 5. The Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, agrees to pay a total of $20,000.00 (Twenty Thousand Dollars and Zero Cents) in current and future attorneys' fees, investigative fees, and/or costs made payable by cashier's check or other certified funds. 6. The RESPONDENT shall pay the above-referenced Twenty Thousand Dollars and Zero Cents ($20,000.00) by either cashier's or certified check made payable to the "DEPARTMENT OF LEGAL AFFAIRS REVOLVING TRUST FUl\;1)" and shall deliver and/or mail the payment to the Attention of Assistant Attorney General Carol E. A. DeGraffenreidt, Office of the Attorney General, 1515 North Flagler Drive, Suite 900, West Palm Beach, Florida 33401, along with the notarized and partially executed A VC signed by both the RESPONDENT and its attorney, within seven (7) business days of its receipt by counsel for the RESPONDENT. 7. The RESPONDENT shall additionally resolve the claim of consumer, Tate Beeson, within fourteen (14) days of returning the partially executedavc signed by both the RESPONDENT 5 INITIALS ~.C-:'-'-------

and its attorney to the Office of the Attorney General. 8. The RESPONDENT acknowledges that the claim of Tate Beeson was previously fon:varded to counsel for the RESPONDENT and that Mr. Beeson's contact information is as follows: Tate Beeson 3440 Butternut Dr. #2 Loveland, Colorado 80538 970-492-5685 Electronic Mail Address: tatebeeson@yahoo.com 9. After the fourteen-day period referenced above in Paragraph 7, the RESPONDENT agrees to provide to the Office of the Attorney General a notarized statement attesting to the fact that the claim of Tate Beeson was resolved and describing the manner in which Tate Beeson's claims was resolved, along with a copy of the Release signed by Tate Beeson as to the claim. 10. The RESPONDENT shall further offer, and provide to accepting consumers listed in the attached spreadsheet identified as "A VC Exhibit A", pre-printed vouchers for two (2) free oil changes which may be used on any vehicle brought to the dealership by the consumer. There shall be no requirement that the vehicle either be owned by the participating consumer or that the vehicle be manufactured by Kia. 11. The RESPONDENT moreover agrees that at the time that the partially executed A VC is signed by both the RESPONDENT and its attorney and returned to the Office of the Attorney General, the RESPONDENT shall likewise include two (2) vouchers per person listed on the attached spreadsheet identified herein as "AVC Exhibit A, which shall not expire prior to January 31, 2014. 12. The Parties agree that the vouchers shall be distributed to the consumers listed on "A VC Exhibit A" by the Office of the Attorney General. 6 INITIALS~!_.:.

13. The RESPONDENT shall ensure that all employees at WEST PALM BEACH Kia are aware of the agreement herein as to the oil change vouchers and that no restrictions be placed upon consumers who present the vouchers to the dealership, including, but not limited to, restrictions as to specific dates and times when the oil changes may be performed/black-out dates and/or any additional charges associated with the use of the voucher, such as requiring that a consumer pay any type of fee associated with the oil change being conducted pursuant to an oil change voucher. IV. PENAL TIES 14. Provided that the Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, complies with the terms of this AVC, no civil penalties shall be sought against it or imposed hereunder for any conduct arising prior to the date of the execution of this A VC. However, in the event that the RESPONDENT knowingly fails to comply with the tenns and conditions of this AVC, and such failure is not cured within thirty (30) day of receiving written notice from the Office of the Attorney General, then such actions are by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes as to the RESPONDENT, and the RESPONDENT shall be subject to any and all civil penalties and sanctions authorized by law. 15.ln the event that the Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, fails to make any payment(s) required by the terms of this AVC within the time period provided by the A VC, then such non-payment shall constitute a material breach and default of the tenns of the AVC. 16. The Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM 7 INITIALS~~

BEACH KIA, moreover consentf to venue and jurisdiction for the entry of a Final Judgment, or any other proceeding necessary to enforce the terms of the A VC, within the Fifteenth Judicial Circuit Court, in and for Palm Beach County, Florida. 17. The RESPONDENT agrees that the Office of the Attorney General may provide notice of default as to the RESPONDENT, as follows: Attorney Jason Todd Allen Bass Sox Mercer 2822 Remington Green Circle Tallahassee, FL 32308 Electronic Mail Address: jallen@dealerlawyer.com V. MISCELJ,ANEOUS TERMS 18. The Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, its representatives, agents, employees, successors, assigns and/or any other person acting under, by, through or on them, directly or indirectly, or through any corporate or other device, shall comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes. 19. The Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, shall further ensure that all of the terms and conditions of this AVC are made known to its representatives, agents, employees, managers, officers, directors, assigns, successors and/or any other person acting under, by, through or on their behalf. 20. The RESPONDENT shall not affect any change in the form of doing business or the organizational identity of any of the existing business entities or create any new business entities as a method of avoiding the obligations and terms and conditions set forth in this A VC. 21. The RESPONDENT agrees to preserve and retain all relevant business and financial records 8 INITIALS~

relating to the acts and practices at issue in this AVC and other information reasonably sufficient to establish compliance with the provisions of this AVC for two (2) years from the date of this A VC, and shall provide reasonable access to such documents and information to the Department upon request. 22. Nothing herein shall be construed as a general V-.'aiver of any private right, cause of action, or remedy of any private person against the Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA. Similarly, nothing contained herein shall waive the right of the Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, to assert any lawful defenses in response to a consumer complaint. 23. Subject to the RESPONDENT'S full, timely and complete compliance with this AVC, the Department is waiving civil penalties that may othetv.:ise be due for the acts and practices at issue in this AVC under Sections 501.2075 or 501.2077, Florida Statutes, of up to $15,000 per violation in consideration of the parties' entry into this AVC. 24. Within 91 days of the payment of all amounts due hereunder by RESPONDENT, the Office of the Attomey General for the State of Florida agrees to close its civil investigation into the activities of the Respondent, WEST PAI.M BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA. 25. Notwithstanding any other provision of this A VC, the Parties acknowledge that any future violations of either this AVC or Flmida law by the RESPONDENT may subject the RESPONDENT to addit1onal and unrelated civil penalties and sanctions, as provided by law. 26.ln the event the Respondent, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST 9 n~itials CNr-- :...:...t.

PALM BEACH KIA, violates any of the tenns and conditions of this A VC, it shall pay reasonable attorney's fees and/or investigative costs which arise from the future violation and be subject to any additional remedies available by law. 27. Although the Parties jointly participated in the negotiation of the terms articulated in this AVC, no provision herein shall be construed for or against either Party on the grounds that any one Party was more heavily involved in the preparation of the AVC and/or its terms. 28. The Parties agree that all notices required hereunder shall be sufficient if given as provided below: AS TO THE ATTORNEY GENERAL: Carol E. A. DeGraffenreidt Assistant Attorney General - Economic Crimes 1515 North Flagler Drive# 900 West Palm Beach, FL 33401 Office Telephone Number: (561) 837-5000 Electronic Mail Address: carol.degraffenreidt@myfloridalegal.com AS TO THE RESPONDENTS: Attorney Jason Todd Allen Bass Sox Mercer 2822 Remington Green Circle Tallahassee, FL 32308 Office Telephone Number: (850) 878-6404 Electronic Mail Address: jallen@dealerla\\ryer.com VI. EF~"ECTIVE DATE 29. The effective date of this A VC shall be the date of its execution by the Department of Legal Affairs. Acceptance by the Department of Legal Affairs shall be established by the signature of the Division Director of the Economic Crimes Unit. The receipt by the Department of Legal Affairs of any monies pursuant to the A VC does not constitute acceptance by the Department of Legal Affairs, and any monies received shall be 10 INITIALS~ _:. :_cc.

returned to RESPONDE~T in the event that this AVC is not accepted and fully executed by the Department of Legal Affairs. 30. It is further agreed that facsimile copies of signatures and notary seals may be accepted as originals for the purposes of establishing the existence of this agreement, and this AVC may be executed in counterparts and the compilation of which shall constitute the full and final agreement. 31.lt is a condition of each of the Department's obligations under this AVC that the RESPONDENT has fully and timely performed all of the RESPONDENT'S obligations previously due under this A VC. 32. This AVC is the final, complete and exclusive statement of the Parties' agreement on the matters contained in this AVC, and it supersedes all previous negotiations and agreements. Other than any representation expressly stated in this A VC, the Parties have not made any representations or warranties to each other, and neither Party's decision to enter into this A VC is based upon any statements by the other Party outside of those in this A VC. IN WITNESS WHEREOF, the RESPONDENT, WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, has caused this Assurance of Voluntary Compliance to be executed by an authorized representative, as a true act and deed, in the county and state listed below, as of the date affixed thereon. l1 INITIALS -- 4~ ~(

WEST PALM B.EACH ACQUISITIONS, INC., d/b/a W.EST.PALM BEACH KIA Agreed to and signed this day of, 2012, by the below-stated person who stated and affirmed as follows: BY MY SIGNATURE I hereby affirm that I am acting in my capacity and within my authority as the President WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, a..'1d that by my signature I am binding WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA, to the terms and conditions of this AVC. By: (/1,----- L~~"? -. _-_-_... CARL R. ATKINSON, PRESIDENT WEST PALM BEACH ACQUISITIONS, INC., d/b/a WEST PALM BEACH KIA STATE OF FLORIDA ) COUNTY OF ORANGE ) BEFORE ME, this d\51- day of (b CQ('()b<r, 2012, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared CARL R. ATKINSON, who acknowledged before me that he executed the foregoing instrument for the ~~v ALfo~_si (print, type or stamp commissioned nan1e ofnotary Public) Personally known Vor Produced Identification (check one) Type of Identification Produced: 12 INITIALS <11\A-- --'-----

A a~ Florida Bar No. 25659 Bass Sox Mercer 2822 Remington Green Circle Tallahassee, FL 32308 Office Telephone Number: (850) 878-6404 Electronic Mail Address: jallen@dealerlawyer.com 13 INITIALS~

FOR THE ATTORNEY GENERAL'S OFFICE.l.'Y'-' uu ~,.,nre1 Assistant Attomey ener 1 Office ofthe Attomey General Florida Bar No. 064 21 01 1515 North Flagler Drive, Suite 900 West Palm Beach, Florida, 33401 Telephone No.: (561) 837-5000 Facsimile No.: (561) 837-5109 Electronic mail: caro.l<kmtl~nr,qi<:l!@myflqrict~.l~mil.cqm Accepted this J;,J day of :Jlv~v --' 201g Samantha Schosber'"""""'"~"'"""' South Florida Burea, Economic Crimes tvision Office of the Attomey eneral 1515 North Flagler Drive, Suite 900 West Palm Beach, FL 33401 (561) 837-5000 14 INITIALS~