Summary of Legal concerns on Dealer’s Owner Project
Old process
TLT appoints TLT’s staffs to act on behalf of TLT for new car registration, by this; TLT will issue general POA for TLT’s staffs and after that, TLT’s staff will assign his task to dealer by sub-power of attorney specified for new car registration case by case
New process
TLT appoints dealer to act on behalf of TLT for new car registration by making general POA to Dealer
Legal Concerns
Chang process by issuing general POA to dealer will increase risk as following
1. More risk for mistake because from old process, the document will issue by TLT and send to Dealers, but new process, Dealers issue all related document by themselves so it is equivalent that the new process will cut off the step that checking the correctness of the document by TLT
2. More risk for fraud, because new process will give more opportunity as a dealers can register for any car of TLT due to the POA under new process is general POA which does not be specific POA (case by case) like before. So it is easier for dealers to register a car out of TLT’s purpose.
3. More risk for confidential leaks, because from new process, TLT will allow Dealers to reach for our confidential data through TFI system.
4. More risk for getting the impact from general Power of Attorney because if Power of Attorney does not be specified for the period of time that is effect, the POA will not be expired until it is canceled or terminated by TLT. And although TLT cancel the POA in case of fraud, such cancelation is hard to be known by the third party, so that dealer may use such POA to deceive someone that he still has the power to do under the POA.
Counter measures
There are many way to reduce risk, it depends on our policy and decision, such as:
1. Having the MOU between TLT and Dealer for confidentiality agreement
2. Having the MOU to state that Dealer must be responsible for any in mistake transfer and solve such problem for correctness.
3. Making POA to limit the power just for new car registration only
4. Making POA by specifying the effective period of POA and renew from time to time
5. Having the MOU specifying about sanction measure in case of fraud. Degree and level of wording thereof will be depending on the consideration between related parts.