Berger Chevrolet, Inc. - Page 11

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            requirement of being ordinary and necessary is a question of                                
            fact.  Id. at 115.                                                                          
                  A dealership's business encompasses a wide range of                                   
            activities beyond the mere sale of a vehicle.  The arrangement of                           
            financing of sales on an installment plan is a familiar aspect of                           
            a dealership's business and the offer of credit insurance with                              
            respect to such sales is proximately related thereto.  Of the                               
            3,112 new and used cars purchased from Classic, 1,888 were                                  
            financed with dealer-arranged financing.  Of the 5,290 cars sold                            
            by Berger, 2,561 were financed with dealer-arranged financing.                              
            With each car financed, the dealer uses the financial                                       
            institution's installment sales contract forms.  Of four                                    
            installment sales contracts in the record, all offer the option                             
            of credit insurance.  Credit insurance is not always purchased by                           
            the customer and is available for purchase elsewhere.                                       
            Nevertheless, it is clear from the record that both the                                     
            dealerships and the financial institutions expect someone at the                            
            dealership to be able to explain and offer credit insurance to                              
            the customer while the customer is filling out the installment                              
            sale purchase agreement.                                                                    
                  The commissions for credit insurance are an "ordinary"                                
            expense.  The parties have stipulated that virtually all new                                
            motor vehicle dealerships in Michigan and other states offer                                
            credit insurance to their customers who finance their                                       
            automobiles.  We have noted that the offering of credit insurance                           

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Last modified: May 25, 2011