IN THE CIRCUIT COURT OF DAVIDSON COUNTY, TENNESSEE FOR THE TWENTIETH JUDICIAL DISTRICT NASHVILLE 28!?th 25 C: 01 STATE OF TENNESSEE, ex rel. HERBERT H. SLATERY Attorney General and Reporter, Petitioner, V. GARY MATHEWS. NORTH, INC., a Tennessee corporation, d/b/a GARY MATHEWS KIA, GARY MATHEWS VOLKSWAGEN, and GARY MATHEWS SELECT AUTOMOTIVE, Respondent. AGREED FINAL ORDER This cause came to be heard on the State of Tennessee?s Petition and the Parties? Assurance of Voluntary Compliance (?Assurance?), and the Court is of the opinion that said Assurance should be approved. IT IS THEREFORE, ORDERED, ADJUDGED, and DECREED that the Assurance, annexed hereto as Exhibit 1, is incorporated herein by reference as if set forth fully herein, and is, hereby, made a part of this Agreed Final Order (?Order?). IT IS FURTHER ORDERED, ADJUDGED, and DECREED that the Assurance is hereby approved, unless rescinded in writing by agreement of the parties and approved by the Court or modi?ed by this Court for good cause shown. IT IS FURTHER ORDERED, ADJUDGED, and DECREED that pursuant to Tenn. Code Ann. 47-18-107, Respondent shall comply with all terms set forth in the Assurance. IT IS FURTHER ORDERED, ADJUDGED, and DECREED that within 3 business days of the date of entry of the Assurance, Respondent shall pay to the Tennessee Attorney General the sum of $30,000.00 by Wire transfer pursuant to the directions of counsel for the State. IT IS FURTHER ORDERED, ADJUDGED, and DECREED that all costs associated with ?ling and distribution of this Order, Assurance and Petition and any other incidental cost or expenses incurred thereby shall be paid as set forth in paragraph 59 of the Assurance. No costs shall be taxed against the State as provided by Tenn. Code Ann. 47-18-116. Further, no discretionary costs shall be taxed to the State. IT IS SO ORDERED. ENTERED this day of $14? ,2015. COURT nemby certify that this is a true COr?iy of'or'ig .: as: instrument tiled in my thit3__ Di 2d 5 "Kilt- Clerk 2 By Deputy ClerkW-H APPROVED FOR ENTRY: FOR PETITIONER, TENNESSEE ATTORNEY GENERAL HERBERT H. SLATERY, Attorney General and Reporter 00 . 1) D. PLUNK Assi tam Attorney General No. 032312 nnessee Attorney General's Of?ce onsumcr Advocate and Protection Division Post Of?ce Box 20207 Nashville, Tennessee 37202-0207 Phone: (615) 741-1671 Facsimile: (615) 532-2910 ON BEHALF OF RESPONDENT: NIES W. CAMERON .ounscl for the Respondent Gary Mathews North, Inc. B.P.R. No. 5105 Cameron Worley, RC. 112 Westwood Place, Suite 240 Brentwood, TN 37027 Phone: (615) 515-1080 Facsimile: (.615) 515-1081 IN THE CIRCUIT COURT OF DAVIDSON COUNTY, FOR THE TWENTIETH JUDICIAL DISTRICT AT 3955:2152 as 11'? a J. STATE OF TENNESSEE, ex rel. HERBERT H. SLATERY Attorney General and Reporter, m. 1 ARM Petitioner, V- NO- 45mm GARY MATHEWS NORTH, INC., a Tennessee corporation, d/b/a GARY MATHEWS GARY MATHEWS VOLKSWAGEN, and GARY MATHEWS SELECT AUTOMOTIVE, Respondent. ASSURANCE OF VOLUNTARY COMPLIANCE 1. The State of Tennessee, by and through Herbert H. Slatery the Attorney General and Reporter, at the request of Bill Giannini, acting Director of the Division of Consumer Affairs of the Department of Commerce and Insurance, negotiated and accepted subject to Court approval, this Assurance of Voluntary Compliance given by Gary Mathews North, Inc., a Tennessee corporation, dfb/a Gary Mathews Kia, Gary Mathews Volkswagen, and Gary Mathews Select Automotive (hereinafter ?Respondent? as defined below). 2. Some of the facts and circumstances surrounding the execution of this Assurance are as follows: 4. The Division through the Attorney General conducted an investigation of Gary Mathews North, Inc. d/b/a Gary Mathews Kia, Gary Mathews Volkswagen, and Gary Mathews Select Automotive. Gary Mathews Kia is located at 511 North Riverside Dr., Clarksville, Tennessee, 37042. Gary Mathews Volkswagen is located at 505 North Riverside Dr., Clarksville, Tennessee, 37042. The Attorney General investigated the following three advertisements sent to Tennessee Consumers: 1. Tennessee Regional Vehicle Clearance Event that took place from February 25 March 3, 2014 (Exhibit 2. The Inventory Reduction Event that took place from October 23 October 28, 2013 (Exhibit and 3. The Statewide Vehicle Clearance Event that took place from March 26 April 1, 2013 (Exhibit C). Terry Corbin Yarbrough was the general manager that approved the speci?c advertisements listed in paragraph 2. B. 1-3. He has signed an af?davit attached as Exhibit regarding this Assurance. As a result of the investigation, the Division and the Attorney General have determined that certain acts and practices of Respondent violated the Tennessee Consumer Protection Act of 1977, Tenn. Code Ann. 47?18-101, et seq. Respondent denies any wrongdoing. Further, pursuant to Tenn. Code Ann. 47- acceptance of this Assurance by Respondent shall not be considered an admission of a prior violation of the Consumer Act except as set forth in 47-18- 109. Therefore, pursuant to Tenn. Code Ann. 47-18?107, subject to Court approval, Respondent desires to give this Assurance, and the Attorney General desires to accept it, in order to avoid the expense associated with litigation. Now, Respondent gives and the Attorney General accepts the following assurances: As used in this Assurance and accompanying Order, the following words or terms shall have the following meanings: A. ?Accelerated Dealer Services? shall mean Accelerated Dealer Services, LLC located at 700 N. Main Street, Newcastle, Oklahoma 73065. ?Advertise,? ?Advertisement,? or ?Advertising,? shall mean any written, oral, graphic, or electronic statement, illustration, or depiction that is designed to create interest in the purchasing of, impart information about the attributes of, publicize the availability of, or affect the sale or use of, goods or services, whether the statement appears in a brochure, newspaper, magazine, free-standing insert, marketing kit, lea?et, mailer, book insert, letter, catalogue, poster, chart, billboard, electronic mail, website or other digital form, slide, radio, broadcast television, cable television, or commercial or infomercial whether live or recorded. ?Assurance of Voluntary Compliance? or ?Assurance? shall mean this document entitled Assurance of Voluntary Compliance in the matter of State of Tennessee ex rel. Herbert H. Slatery Attorney General and Reporter, v. Gary Mathews North, Inc, a Tennessee corporation, d/b/a Gary Mathews Kia, Gary Mathews Volkswagen, and Gary Mathews Select Automotive. ?Clear and Conspicuous? or ?Clearly and Conspicuously? shall mean a statement that, regardless of the medium in which it is made, is readily understandable and presented in such size, color, contrast, duration, physical or temporal location, or volume (if applicable), compared to other information with which it is presented, that it is readily apparent to the person to whom it is disclosed. A statement may not contradict or be inconsistent with any other information with which it is presented. If a statement is necessary to prevent other information from being misleading, deceptive or unfair, then the statement must be presented in close proximity to the other information, in a manner that is readily noticeable, readable and understandable, and it must not be obscured in any manner. To be ?Clear and Conspicuous,? warnings, disclosures, limitations or exceptions must be set out in close temporal or physical conjunction with the bene?ts or goods described or referenced, or with appropriate captions, of such prominence that warnings, disclosures, limitations or exceptions, are not minimized, rendered obscure, presented in an ambiguous fashion, or intermingled with the context of the statement so as to be confusing or misleading or contradictory. The statement shall be in understandable language and syntax. Nothing contrary to, inconsistent with, or in mitigation of the statement shall be used in any communication. ?Consumer? shall mean any person, a natural person, individual, governmental agency, partnership, corporation, trust, estate, incorporated or unincorporated association, and any other legal or commercial entity however organized. ?Covered Conduct? shall mean the ReSpondent?s advertising regarding the Tennessee Regional Vehicle Clearance Event that took place from February 25 - March 3, 2014 (Exhibit the Inventory Reduction Event that took place from October 23 October 28, 2013 (Exhibit and the Statewide Vehicle Clearance Event that took place from March 26 April 1, 2013 (Exhibit C) that were the subject of an investigation by the Attorney General. 3 ?Division? or ?Division of Consumer Affairs? shall mean the Tennessee Division of Consumer Affairs of the Department of Commerce and Insurance. ?Document? shall be synonymous in meaning and equal in scope to the usage of the term in Tenn. R. Civ. P. 34, and includes writings, drawings, graphs, charts, photographs, audio and video recordings, computer records, and other data compilations from which information can be obtained, extracted and translated, if necessary, through detection devices into reasonably usable form. A draft or non-identical copy is a separate document. ?Immediately Adjacent? shall mean in such direct proximity to the referenced item that the word(s), picture(s), or other representation(s) are perceived as an integral part of the referenced item. ?Immediately Adjacent? shall explicitly not mean: included in a footnote, referenced by way of asterisk cross (T), numbers or any other marking which directs the reader to any other location on the same page or on another page. ?Including? or ?Include? shall mean including, without limitation. ?Person? shall mean a natural person, individual, organization or other legal entity, including a corporation, partnership, proprietorship, association, trust, estate, cooperative, limited liability company, government or governmental subdivision or agency, any legal or commercial entity however organized, or any other group or combination acting as an entity. ?Petitioner,? ?State of Tennessee,? or ?Attorney General? shall mean the Plaintiff and shall mean the Of?ce of the Tennessee Attorney General and Reporter. ?Prize? shall mean any prize, gift, award, incentive, promotion or anything of value. ?Prize? includes, but is not limited to, anything of value offered or awarded to a participant in a real or purported contest, sweepstakes, competition, puzzle, drawing, incentive offer, premium promotion or similar promotional offer by whatever name the company uses, scheme, plan, or other selection process. ?Order? shall mean the Agreed Final Order entered in State of Tennessee ex rel. Herbert Slatery v. Gary Mathews North, Inc., a Tennessee corporation, d/b/a Gary Mathews Kia, Gary Mathews Volkswagen, and Gary Mathews Select Automotive. ?Respondent? shall mean Gary Mathews North, Inc., a Tennessee corporation, d/b/a Gary Mathews Kia, Gary Mathews Volkswagen, and Gary Mathews Select Automotive and/or any and all general partners, parent corporation(s), af?liates, subdivisions, future or past purchasers, merged parties, inheritors or other successors in interest, and all of its of?cers, directors, owners, operators, 4 employees, sales staff, managers, partners, parents, subsidiaries, af?liates, successors, assigns, agents and representatives acting on behalf of Gary Mathews North, Inc. and its dbas. P. ?Tennessee Consumer Protection Act? or ?Consumer Act? shall mean the Tennessee Consumer Protection Act of 1977, as may be amended from time to time, and related statutes found at Tenn. Code Ann. 47?1 8-101 et seq. mm 5. Jurisdiction of this Court over the subject matter herein and over the person of the Respondent for the purposes of entering into and enforcing this Assurance and Order is admitted. Jurisdiction is retained by this Court for the purpose of enabling the State to apply for such further orders and directions as may be necessary or appropriate for the construction, modification, or execution of this Assurance and Order, including enforcement of compliance therewith and assessment of penalties for violation(s) thereof. Respondent agrees to pay all court costs and reasonable attorneys? fees and any costs associated with any successful petitions to enforce any provision of this Assurance and Order against Respondent. XENEE 6. Pursuant to Tenn. Code Ann. 47-18-107, venue as to all matters between the parties relating hereto or arising out of this Assurance is solely in the Circuit or Chancery Court of Davidson County, Tennessee. RE AB I TI 7. Accordingly, it is hereby agreed that upon approval of this Assurance by the Court, Respondent and anyone in concert with Respondent shall be permanently and forever enjoined, restrained and bound from directly and indirectly engaging in the practices set forth herein, and further, permanently required to directly or indirectly satisfy the af?rmative requirements set forth herein: F. Respondent shall not engage in any misleading, unfair, or deceptive acts or practices in the conduct of its business. Respondent shall fully comply with all provisions of the Tennessee Consumer Protection Act of 1977, Term. Code Ann. 47-18-101, et seq., including but not limited to and which prohibit unfair and deceptive acts and practices. Respondent shall not advertise goods or services with the intent not to sell them as advertised in violation of Term. Code Ann. Respondent shall fully comply with all Tennessee laws regarding the offering of Prizes, gifts, awards, incentive offers and/or travel services including, but not limited to, Tenn. Code Ann. 47-18-120 and 47?18-124. Without limiting the scope of paragraph 7.C., when offering a Prize or travel service, Respondent shall, Clearly and Conspicuously, disclose the approximate veri?able retail price of each Prize or the price of any product offered for sale through any promotional program in a position Immediately Adjacent to the item when the initial offer is in writing, in the same size and boldness of type as the reference to the Prize. Without limiting the scope of paragraph 7.C., when Respondent represents that it is offering a ?Sweepstakes Prize Board,? ?Wall of Winners! You Could Be Next!? ?You have Won!? or term of similar import implying that a person is a ?winner,? is a ??nalist,? has been ?specially selected,? or is otherwise among a limited group of persons with an enhanced likelihood of receiving a Prize, the written Prize notice shall Clearly and Conspicuously contain: i. a statement of the maximum number of persons in the group or purported group with this enhanced likelihood of receiving a Prize; and - ii. whether the offer is limited only to Consumers within Tennessee or it is part of a larger group of Consumers residing in states other than Tennessee. a. If the offer includes Consumers in states other than Tennessee, Respondent shall disclose the names of the states participating in the offer. b. This statement must be made in a position Immediately Adjacent to the representation, in the same size and boldness of type as the representation. Without limiting the scope of paragraph 7.C., Respondent shall not directly or indirectly represent or advertise that a particular Consumer was a prior winner of a 6 Prize offer from Respondent unless such is the case. This provision includes a prohibition against using such Consumer?s name or photo in Respondent?s representation or advertisement unless the Consumer was a prior winner of a Prize offer from the Respondent. Without limiting the scope of paragraph 7.C., when offering a Prize or travel service, Respondent shall Clearly and Conspicuously disclose Immediately Adjacent to each Prize or travel service offered, a statement of the odds, if applicable, in Arabic numerals, of receiving each item offering. Further, Respondent shall ensure that the statement of odds is in the following form: (number of Prizes) out of notices distributed.? Without limiting the scope of paragraph 7.C., when offering a Prize or travel service, Respondent shall Clearly and Conspicuously disclose whether all Prizes or travel services will be awarded, if claimed, to Consumers in Tennessee. Without limiting the scope of paragraph 7.C., when offering a Prize or travel service, Respondent shall award and distribute all of the Prize or travel service in accordance with the rules, terms and conditions of the offer or promotional program as promoted or disclosed. Without limiting the scope of paragraph 7.C., when offering a Prize or travel service, Respondent shall not directly or indirectly require that a Consumer or person incur any monetary obligation, excluding reasonable postage or transportation costs, in order to determine which, if any, Prize or travel service the Consumer or person is offered or will receive or to continue to remain eligible to receive any Prize or travel service. Without limiting the scope of paragraph 7.C., when offering a Prize or travel service, Respondent shall not directly or indirectly use or make a statement or representation in the main, primary or emphasized portion of the text of a solicitation, promotion or advertisement or other offering that is contradicted in any way by a disclosure that is not Clear and Conspicuous, easily read, noticeable or presented in small or ?ne print. Without limiting the scope of paragraph 7.C., Respondent or any of its agents shall not inform or imply a Consumer is the winner of a speci?c Prize, drawing or other similar promotional offering or game unless such is the case. Without limiting the scope of paragraph 7.C., Respondent shall not use past Prize winners? faces, names or likenesses to promote an offer or Prize, drawing, or other similar game unless Respondent has Clearly and Conspicuously disclosed the date such past winner received its Prize, the identity and location of the dealership that provided the Prize, and the amount of such Prize awarded. 7 Without limiting the scope of paragraph 7.C., Respondent shall not represent that a winning scratch mailer, advertisement, number or similar offer was sent to a speci?c geographical area unless such is the case. Without limiting the scope of paragraph 7.C., Respondent shall Clearly and Conspicuously disclose all terms, conditions, acts or additional steps that a Consumer must take before claiming a Prize contained in an offer from Respondent. Respondent shall not advertise speci?c makes and models of vehicles in its advertisements unless such automobiles are available for purchase under the promoted terms at the time the advertisement is provided to a Consumer. Respondent shall not advertise a speci?c automobile and stock number in its advertisements unless such automobile is available for purchase under the promoted terms and at the time the advertisement is provided to a Consumer. Respondent shall take af?rmative steps to ensure that its advertisements are in compliance with all federal, state and local laws, including but not limited to the Tennessee Motor Vehicle Commission?s rules and regulations. Respondent shall possess written veri?able substantiation for all representations made in its advertisements at the time that such advertisement is disseminated to any Consumer. Said substantiation shall be made available to the Attorney General within three (3) business days of a written request at its Of?ces in Nashville, Tennessee. When advertising the sale of an automobile, Respondent shall not use images of new cars for offers promoting a used car or a ?nancing offer that is being offered in conjunction with the sale of a used car. Respondent shall Clearly and Conspicuously disclose that the car is used in such case. Respondent shall not use variables on a Prize offer that will give a Consumer the impression that he or she has won a speci?c Prize when he or she has not won such Prize, including but not limited to variables listed on scratch off mailers that require the Consumer to match a number of variables in a certain sequence. For instance, Respondent shall not use the variable ?$20,000? or similar variable matched in a certain sequence or similar manner unless such sequence represents that a Consumer has actually, without condition, won $20,000. Respondent shall not represent or imply pictured or other vehicles will be offered at and ?$99 PER or term or phrase of similar import, unless such is the case for all Consumers. Respondent shall not represent or imply pictured vehicles or other vehicles will be offered for ?new vehicles as low as $181 per month? and ?no payments for 90 days? or term or phrase of similar import, unless such is the case for all Consumers. Respondent shall not advertise that a vehicle is available for down? and/or per mont or other comparable terms without Clearly and Conspicuously disclosing in an Immediately Adjacent position both the APR percentage and the term of months necessary for the Consumer to make a purchase using the stated terms. Respondent shall keep all Documents related to its Advertisements disseminated to Consumers for a period of no less than three years from the last date it is disseminated to Consumers. Such documents shall include but are not limited to: 1. All proofs of Respondent?s advertisements; 2. All written approvals of each advertisement; 3. All correspondence with third-parties regarding the development, creation, or dissemination of each advertisement; 4. All invoices, checks, and receipts related to Respondent?s advertisements; 5. Copies of all ?nal approved advertisements; 6. Copies of all written veri?able substantiation for claims and representations; - 7. Copies of all complaints or inquiries from Consumers, regulatory or law enforcement entities and your responses relating to each advertisement; 8. All dealer ?les related to any Consumer who ?les a complaint or inquiry as referenced in paragraph 7. Y. and 9. A list of all Consumers who were sent advertisements including, if available, the Consumer?s name, address, e-mail address, phone number, and the date the advertisement was sent to each Consumer. Respondent shall be prohibited from stating, implying or causing to be stated or implied that the Attorney General, the Division of Consumer Affairs, the Department of Commerce and Insurance, Motor Vehicle Commission, or any other governmental unit of the State of Tennessee approved, sanctioned, or authorized any practice, act, or conduct of the Respondent. AA. Respondent shall be prohibited from representing or implying that any procedure or other acts or practices hereafter used or engaged in by Respondent has been approved, in whole or in part, by the State. 8. On the day of entry of this Assurance, Respondent shall pay the sum of $30,000.00 to the Tennessee Attorney General by electronic funds transfer pursuant to the directions provided by Counsel for the Attorney General. Said ?lnds include Tennessee Attorney General?s legal fees and costs of investigation and prosecution this matter. 9. Upon request, Respondent agrees to provide books, records, and documents to the State at any time, and further, to informally or formally, under oath, provide testimony and other information to the State relating to compliance with this Assurance. Respondent shall make any requested information available within one week of the request at the Of?ce of the Attorney General in Nashville, Tennessee or at any other location within the State of Tennessee that is mutually agreeable, in writing to the Respondent and the Attorney General. This section shall in no way limit the State?s right to obtain documents, information, or testimony pursuant to any federal or state law, regulation, or rule. 10. The State of Tennessee has the right to conduct undercover investigations of Respondent for the purpose of con?rming compliance with this Assurance and state law. The State?s undercover operatives, if any, are not required to disclose that they are representatives of the State of Tennessee when making contact with Respondent. Further, the State may record (audio and/or video) any or all aspects of its interaction with Respondent without notice to 10 Respondent. Respondent agrees to void any sale that is conducted by an undercover operative on behalf of the State, upon noti?cation by the State. TI TA 11. Nothing in this Assurance shall be construed to affect, limit or alter any private right of action that any Consumer, person, or any local, state, federal or other governmental entity, may hold against the Respondent. WM 12. Pursuant to Tenn. Code Ann. Respondent understands that upon execution and ?ling of this Assurance, any subsequent failure to comply with the terms hereof is primafacz?e evidence of a Violation of the Consumer Act. 13. Pursuant to Tenn. Code Ann. 4748-1076), Respondent understands that any knowing violation of the terms of this Assurance shall be punishable by civil penalties of not more than One Thousand Dollars for each violation, in addition to any other appropriate penalties, remedies and sanctions, including but not limited to, contempt sanctions and the imposition of attorneys? fees and civil penalties. MPL 14. ReSpondent represents and warrants that two (2) consumers have complained to it regarding the advertisements referenced in Paragraph 2.B. or regarding the related transactions associated with those mailers. Within ten (10) days of identi?cation of a new Consumer complaint regarding the advertisements referenced in 2.B., or regarding a related transaction associated with those advertisements, Respondent shall provide the Attorney General and the Division of Consumer Affairs with the name and contact information of any Consumer who 11 complained after entry of the Assurance along with Respondent?s proposed good faith response to said complaint. If the Director of the Division of Consumer Affairs is not satis?ed with the proposed resolution, he/she may elect to request the Assurance be re-opened to consider what restitution or other relief is appropriate to Consumers. 15. The acceptance of this Assurance by the Attorney General shall not be deemed approval by the Attorney General of any of Respondent?s advertising or business practices. Further, neither Respondent nor anyone acting on its behalf shall state or imply or cause to be stated or implied that the State of Tennessee, the Attorney General, the Department of Commerce and Insurance, the Division of Consumer Affairs, Motor Vehicle Commission or any other governmental unit of the State of Tennessee has approved, sanctioned or authorized any practice, act, advertisement or conduct of the Respondent. 16. This Assurance may only be enforced by the Parties or the Court hereto. 17. The titles and headers to each section of this Assurance are for convenience purposes only and are not intended by the parties to lend meaning to the actual provisions of the Assurance. 18. Nothing in this Assurance shall limit the Attorney General?s right to obtain information, documents or testimony from Respondent pursuant to any state or federal law, regulation or rule. 19. Nothing in this Assurance shall be construed to limit the authority of the Attorney General to protect the interests of the State or the peOple of the State of Tennessee. In addition, 12 this Assurance and Order shall not bar the State, or any other governmental entity, from enforcing laws, regulations or rules against Respondent. 20. By agreeing to this Assurance and Order, Respondent reaf?rms and attests to the truthfulness, accuracy, and completeness of all of the information provided by Respondent to the Attorney General prior to entry of this Assurance and Order. The Attorney General?s agreement to this Assurance is expressly premised upon the truth?ilness, accuracy, and completeness of the information provided by Respondent to the Attorney General and Division throughout the course of the investigation of this matter, which information provided to the State during the negotiations of the terms and conditions of this Assurance and Order. 21. If the Attorney General ?nds that Respondent failed to disclose material information, or made any other material misrepresentation or omission relevant to the resolution of the State?s investigation, the State retains the right to seek modi?cation or to set aside portions of this Assurance or Order upon proper Written notice to Respondent. 22. Nothing in this Assurance constitutes an agreement by the State of Tennessee concerning the characterization of the amounts paid hereunder for purposes of any proceeding under the Internal Revenue Code or any state tax laws. 23. Respondent waives and will not assert any defenses Respondent may have to any criminal prosecution or administrative action relating to the conduct described in the State?s Petition, which defenses may be based, in whole or in part, on the Double Jeopardy or Excessive Fines Clauses of the Constitution or principles set forth in Hudson v. United States, 118 S. Ct. 488 (1997), and Austin v. United States, 509 US. 602 (1993), and agrees that the amount that 13 Respondent has agreed to pay under the terms of this Assurance is not punitive in effect or nature for purposes of such criminal prosecution or administrative action. 24. Respondent hereby expressly waives and relinquishes any and all rights, remedies, appeals or other interests that it may possess to a jury trial or any derivative rights that ?ow from a trial by jury under the Tennessee Constitution or United States Constitution or any other law, regulation or rule. 25. No waiver, modi?cation, or amendment of the terms of this Assurance shall be valid or binding unless made in writing, signed by the party to be charged, and approved by this Honorable Court, and then only to the extent set forth in such written waiver, modi?cation or amendment. 26. Any failure by any party to this Assurance to insist upon the strict performance by any other party of any of the provisions of this Assurance shall not be deemed a waiver of any of the provisions of this Assurance, and such party, notwithstanding such failure, shall have the right thereafter to insist upon the speci?c performance of any and all of the provisions of this Assurance and the imposition of any applicable penalties, including but not limited to contempt, civil penalties and/or the payment of attorneys? fees to the State. 27. If any clause, provision or section of this Assurance shall, for any reason, be held illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall not affect any other clause, provision or section of this Assurance and this Assurance shall be construed and enforced as if such illegal, invalid or unenforceable clause, section or other provision had not been contained herein. 14 28. Respondent waives any and all challenges in law or equity to the entry of the Assurance by the courts. Further, ReSpondent has waived any right to appeal, petition for certiorari, move to re-argue or re-hear or to otherwise be heard in connection with any judicial proceedings under this Assurance. 29. Time shall be of the essence with respect to each provision of this Assurance that requires action to be taken by the Respondent within a stated time period or upon a speci?ed date. 30. Nothing in this Assurance shall be construed to waive any claims of Sovereign Immunity the State may have in any action or proceeding. 31. Respondent will not participate, directly or indirectly, in any activity to form a separate entity or corporation for the purpose of engaging in acts prohibited in this Assurance or for any other purpose which would otherwise circumvent any part of this Assurance or the spirit or purposes of this Assurance. 32. The lists and reports provided to the State of Tennessee and in the possession of Respondent shall not be released to any person to protect the interest of Consumer privacy and to prevent further marketing to these Consumers and possible identity theft, other than law enforcement authorities or pursuant to state or federal law. 33. Respondent also agrees that the Consumer names, mail and email addresses, telephone numbers and other personally identi?able information gathered or otherwise obtained during the implementation of this Assurance shall not be used for any marketing purposes or provided to any other person for any reason including, but not limited to, the purposes of marketing to these Consumers now or in the future. 15 34. Respondent has provided the State with certain documents, advertisements, and contracts. Respondent acknowledges and agrees that providing these documents to the State in no way constitutes the State?s pre-approval, review for compliance with state or federal law, or with this Assurance, or a release of any issues relating to such documents. 35. Respondent agrees that this Assurance does not entitle Respondent to seek or to obtain attorneys? fees as a prevailing party under any statute, regulation or rule, and Respondent further waives any rights to attorneys? fees that may arise under such statute, regulation or rule. 36. Respondent further agrees to execute and deliver all authorizations, documents and instruments which are necessary to carry out the terms and conditions of this Assurance. 37. This Assurance may be executed in any number of counterparts and by different signatories on separate counterparts, each of which shall constitute an original counterpart hereof and all of which together shall constitute one and the same document. One or more counterparts of this Assurance may be delivered by facsimile or electronic transmission with the intent that it or they shall constitute an original counterpart thereof. 38. Respondent waives and relinquishes any arguments, rights or defenses regarding the fact that this Assurance and Order includes an injunction but no ?ndings of fact or conclusions of law. 0 NTI 39. Respondent represents and warrants that the execution and delivery of this Assurance is its free and voluntary act, this Assurance is the result of good faith negotiations, and that Respondent agrees the Assurance and terms hereof are fair and reasonable. Further, the Respondent represents and warrants no offers, agreements, or inducements of any nature 16 whatsoever have been made to the Respondent by the State of Tennessee, its attorney, or any employee of the Attorney General or the Division, to procure this Assurance. 40. Respondent represents that signatories to this Assurance have authority to act for and bind the Respondent. 41. Respondent Gary Mathews North, Inc. d/b/a Gary Mathews Kia, Gary Mathews Volkswagen, and Gary Mathews Select Automotive warrants and represents that it is the proper party to this Assurance and Order. 42. Respondent represents and warrants that it is in good standing as a Corporation with the Tennessee Secretary of State. 43. Respondent warrants and represents that it has only done business from the following addresses in Tennessee or into Tennessee: A. 1111 'Ft. Campbell Blvd., Clarksville, TN 37040; B. 505 North Riverside Drive, Clarksville, TN 37040; and C. 511 North Riverside Drive, Clarksville, TN 37040. 44. Respondent warrants and represents that it began doing business in Tennessee on December 10, 1987 and has been fully authorized and licensed to engage in business since that time going forward to the date of entry of this Assurance. 45. Respondent represents and warrants the following regarding its Statewide Vehicle Clearance Event advertisement that took place from March 26, 2013 April 1, 2013: A. Respondent sent 50,000 copies of the advertisement to Consumers in the Clarksville, Tennessee area. B. Respondent represents that every Consumer was sent an advertisement that 17 contained three $20,000 symbols in a row signifying that the Consumer was a winner. Respondent represents that it paid Accelerated Dealer Services $106,468.48 to create the advertisement and provide staf?ng for the event at the Respondent?s dealership in Clarksville, Tennessee. 46. Respondent represents and warrants the following regarding its Inventory Reduction Event that took place from October 23, 2013 October 28, 2013: A. Respondent sent 50,000 copies of the advertisement to Consumers in the Clarksville, Tennessee area. Respondent represents that every Consumer was sent an advertisement that contained three $25,000 symbols in a row signifying that the Consumer was a winner. Respondent represents that it paid Accelerated Dealer Services $79,971.52 to create the advertisement and provide staf?ng for the event at the Respondent?s dealership in Clarksville, Tennessee. 47. Respondent represents and warrants the following regarding its Tennessee Regional Vehicle Clearance Event that took place from Tuesday February 25 - March 3, 2014: A. Respondent sent 50,000 copies of the advertisement to Consumers in the Clarksville, Tennessee area. Respondent represents that every Consumer was sent an advertisement that contained three $20,000 symbols in a row signifying that the Consumer was a winner. 18 C. Respondent represents that it paid Accelerated Dealer Services $41,193.32 to create the advertisement and provide staf?ng for the event at the Respondent?s dealership in Clarksville, Tennessee. 48. Respondent represents and warrants it has only used the following type of advertising to solicit Tennessee Consumers: direct mail, Internet, television, radio and newspaper. 49. Respondent represents and warrants that the sole principal owner and operator is Alton Gary Mathews whose af?davit is attached as Exhibit to this Assurance. 50. Respondent represents and warrants that all vehicles identi?ed by stock number during each of the campaigns were in fact available for purchase on the dates of each speci?c campaign at the prices and ?nancing plans listed in the solicitations except for the 2014 Volkswagen Jetta Sedan, stock number 7073, which was sold just prior to the event. Further, if any of these vehicles were purchased, Respondent represents and warrants it was sold at no more than the price listed and consumers were given the speci?c ?nancing plan offered in the solicitation. Respondent understands that the State expressly relies upon all of the representations and warranties set forth in paragraphs 39-51 of this Assurance and elsewhere within the Assurance and if any of them are false, misleading, deceptive, incomplete, unfair, or inaccurate in any way, the State shall have the right to move to vacate or set aside (inter alia) this Assurance and Order (in whole or in part), and request that Respondent be held in contempt or seek statutory sanctions, if the State so elects. RELEASE 52. By execution of this Assurance the Attorney General hereby releases and forever 19 discharges Respondent, as de?ned above from all civil causes of action and remedies that the Attorney General could have asserted against the Respondent involving the Covered Conduct as de?ned in paragraph 4.F., under the Tennessee Consumer Protection Act, Tenn. Code Ann. 47- 18-104 et seq., at any time up to the date of entry of this Assurance. 53. Notwithstanding any term of this Assurance, any and all of the following forms of liability and/or claims are speci?cally reserved and excluded from the Release in paragraph 52 as to any entity or person, including the Respondent: A. Any criminal liability that any person or entity, including the ReSpondent, has or may have to the State of Tennessee. B. Any civil or administrative liability that any person or entity, including the Respondent, has or may have to the State of Tennessee under any statute, regulation, or rule not expressly covered by the release in paragraph 52 above, including but not limited to, any and all of the following claims: 1. State or federal antitrust violations; 2. State or federal environmental claims; 3. State or federal false claims; 4. State or federal tax claims; and 5 . Any claim that the Attorney General does not have authority to release. A 54. Nothing in this Assurance and Order shall be construed as relieving Respondent of- the obligation to comply with all state or federal laws, regulations, or rules. LI 55. Upon the execution of this Assurance, the Attorney General shall file in the Circuit 20 Court for Davidson County a Petition, Order, and this Assurance for the Court?s approval. Respondent hereby waives any and all rights which it may have to be heard in connection with judicial proceedings upon the Petition. Respondent agrees to pay all costs of ?ling such Petition, Assurance, and Order. Simultaneously with the execution of this Assurance, Respondent shall execute an Order. This Assurance is made a part of and is incorporated into the Order. The Respondent consents to the entry of this Assurance and Agreed Final Order without further notice. 59:! 1le 56. For ?ve (5) years following execution of this Assurance, Respondent shall notify the Attorney General in writing at least ten (10) days prior to the effective date of any proposed changes in its corporate/business structure or any other business entity engaged in conduct that would be covered by this Assurance, such as dissolution, assignment, or sale resulting in the emergence of a successor corporation or ?rm, the creation or dissolution of subsidiaries, or any other changes in status that may affect compliance with obligations arising out of this Assurance. 57. Any notices required by this Assurance shall be sent certi?ed mail - return receipt requested, by United States mail or by any other nationally recognized courier service that provides tracking services and identi?cation of the person signing for the document. The documents shall be sent to the following addresses: For the Tennessee Attorney General: For Respondent: Deputy Attorney General James W. Cameron Of?ce of the Attorney General Cameron Worley, P.C. Consumer Advocate and Protection Division 112 Westwood Place, Suite 240 Post Of?ce Box 20207 Brentwood, TN 37027 Nashville, Tennessee 37202 Phone: (615) 515-1080 Telephone: (615) 741?1671 Facsimile: (615) 515-1081 Facsimile: (615) 532-2910 21 58. The Respondent shall be required to provide the Attorney General with any changes to the above contact information ten (10) days prior to any change becoming effective. 5 9. All costs associated with the ?ling and distribution of this Assurance and any other incidental costs or expenses incurred thereby shall be borne by Respondent. No costs shall be taxed against the State as provided by Tenn. Code Ann. 47?18?1 16. Further, no discretionary costs shall be taxed to the State. TI 60. This Assurance sets forth the entire agreement between the parties, and there are no representations, agreements, arrangements, or understandings, oral or written, between the parties relating to the subject matter of this Assurance which are not fully expressed herein or attached hereto. 22 Assurance of Voluntary Compliance in STATE OF TENNESSEE, ex rel. HERBERT H. SLATERY Attorney General and Reporter, v. GARY MATHEWS NORTH, IN C., a Tennessee corporation, d/b/a GARY MATHEWS KIA, GARY MATHEWS VOLKSWAGEN, and GARY MATHEWS SELECT AUTOMOTIVE. FOR THE STATE OF TENNESSEE, ATTORNEY GENERAL: 1' HERBERT H. SLATERY 4? Attorney General and Reporter B.P.R. No. 009077 @4102!? 34,7310? . . No. 032312 Of of the Tennessee Attorney General Consumer Advocate and Protection Division Post Of?ce Box 20207 Nashville, Tennessee 37202-0207 Phone: (615) 741-7663 Facsimile: (615) 532-2910 23 AT THE REQUEST OF: GIANNINI Acting Director Division of Consumer Affairs of the Department of Commerce and Insurance 500 James Robertson Parkway 5th Floor, Davy Crockett Tower Nashville, TN 37243-0600 (615) 741?4737 24 FOR THE RESPONDENT: ng ?3 JA W. CAMERON Co sel for the Respondent Gary Mathews North, Inc. B.P.R. No. 5105 Cameron Worley, RC. 112 Westwood Place, Suite 240 Brentwood, TN 37027 Phone: (615) 515-1080 Facsimile: (615) 515-1081 25 RESPONDENT GARY MATHEWS NORTH, INC. SIGNATURE AND ACKNOWLEDGMENT Respondent Gary Mathews North, Inc. and its attorney have read and understand this Assurance and each of its terms. Respondent admits to the jurisdiction of the Court in this matter and consents to the entry of this Assurance. Respondent agrees to each and every term contained herein. I, being ?rst duly sworn on oath, depose and say that I am an of?cer of Gary Mathews North, Inc. and am authorized and empowered to sign this Assurance on behalf of Gary Mathews North, Inc., and bind the same to the terms hereof. Jim ?Ngme: Gav ?out-Fix MU Title: qua-Li AM Social Securit - Name of Ga Wadi? @003 0M (17? Address: 50 [Ye/t tab. 19/ (Jon/Jada: Haj/Q Phone: 751/ Facsimile: 07 5,13 H3 5 Email: SUBSCRIBED AND SWORN to before me this day of . Q?s" STATE Notary Public 1y}: .. m, My Commission Expires: [lg . EXHIBIT A YOU ARE TO ATTEND THE ?a'i'a?AL. way r- ELI L?m A I?l? GARY MATHEWS 866-547-2091 VOLKSWAGEN KIA TUESDAY WEDNESDAY SNURDAY SUNDAY MONDAY MARCH 1 MARCH 2 MARCH 3 -- FEBRUARY 25 FEBRUARY 26 FEBRUARY 27 FEBRUARY 28?. 1k 9PM 9PM 8:30Nv? 8 an, MAT i: ?Um; ?it GARY MATHEWS 505 North Riverside Drive Clarksville TN 37040 09! 866-5472 Tuesday, Feb 25th 8:30am-9:00pm Wednesday, Feb 26th 8:3Oam?9200pm Thursday, Feb 27th 8:300m-9100pm Friday, Feb 28th 8:300m-9:00pm Saturday, Mar 9:OOam-o:OOpm Sunday, Mar 2nd CLOSED Monday, Mar 3rd 8:3Oam-9100pm VW KIA Dear Customer, During this event, Hundreds of Vehicles will be sold direct to the public. Cars, Trucks, Vans All at the lowest prices of Dear Customer, the Year! All reasonable offers will be accepted. It doesn?t Gary Mathews Volkswagen Kia in Clarksville, TN is hosting a special event for the public. This event features hundreds of cars, trucks, vans, and SUVs marked down to amazing prices. your vehicle! individuals like you were chosen to participate in this event. Gary Mathews Volkswagen Kia in Clarksville, TN prides itself on bringing great value, a streamlined process, and unheard of prices on our inventory of vehicles These are the things you are guaranteed: 1. Great selection 2. Super competitive pricing 3. Incredible customer service 4. Follow up after the sale 80 if you are even thinking of purchasing a vehicle in the near future, do not miss this event! TUESDAY WEDNESDAY FEHRUARY 25 FEBRUARY 26 Let?s talk! Hurry in today to ?nd THURSDAY FEBRUARY 27 sewers FRIDAY FEBRUARY '28 USED VEHICLES 1 teasers 4 . SATURDAY MARC-I I 9AM -6PM ES NOT INCLUDE PURCMSER. i SUNDAY MARCH 2 CLOSED . lT'i' AT sage/um FUR an M0 on APPROVED THE 0F OPTIONAL MONDAY I MARCH 3 2: LILI-I Ll? IJIESIJAIY FEBRUARY 25 a 3 AM WE. SEDAY FEBRUARY 25 3 I RSDE-W FEBRUARY 27 8 QFNI H2 sum FEBRUARY 28 333w 0PM 1" EWS 1 PIER8M50. JETTII SEDAN, STHIHIITS. NT 317.540 WITH 20% EUUITY 2.93% APR EUR 34 M08 WAG. PROCESSING FEE IN PRICING. TTNL EXTRA. DOES NOT INCLUDE THE COST TIE OPTIONAL EQUIPMENT SELECTED BY THE PURCHASER. . GARY MATHEWS VW KIA DUPWRIS LOCAL MILITARY AND GOVERNMENT I ACTIVE AND RETIRED TEACHERS, POLICE, FIREFIGTHERS, CITY WORKERS, US ABOUT SPECIAL INCENTIVES JUST FOR NO PAYMENTS EUR HATS UN SEI MINI SEE FUR GETAIIS I I EVENT DISCOUNT BONUS I I MILITARY AND GOVERNMENT I, MC) DAY MARCH 3 5 NFL-RY MARCH 1 MARCH 2 9AM (3PM 'Jrl SATURDA Evmus $20,000 IN PARIS, I ?Il?j?l L/r? 2 BE .I 2:332:38 $1,500.00 VOID AFTER 3/3l2014 i I I r1 I V0 3/2014 erummustadvemsen I I mam- "03,3 1 I Islam: in wok MAIL 505 NORTH RIVERSIDE DR. up In (I: II: \mu nm: TUESDAY WEDNESDAY THURSDAY shuaom MCEDAY . - - - - - - - - - - - - - - - - - - .. mum 25 FEBRUARY 26 FEBRUARY 27 FEBRUARY 28 mm MARCH 2 MARCH 3 TUESDAY WEDNESDAY THURSDAY HID-MI SATURDAY SJNDAY MONDAY 9AM-6PM 0.0an 8-30AM-9PM ?mm? 35 ?3mm a-aomem a NAM-WM . CLOSED - I '5 BRAND NEW We?ll Give You Top Dollar 2014VWJE1TA Your 'h'ade MILEAGE AND CONDITION OF VEHICLE WILL AFFECT TRADE VALUE. VISUAL INSPECTION BY DEALER STAFF REQUIRED. {0 . @520900 (ASH HUNDREDS OF VEHICLES VE Hll?slig I STARTING AT 1993 CHEVY VENTURE, ST NOT INCLUDED. $457 PROCESSING FEE INCLUDED IN PRICING. DOES NOT INCLUDE THE COST OF $9,599. 845? OPTIONAL EQUIPMENT SELECTED BY THE PURCHASER. 000000000 #?Ng?l?lAE? 0000100. 000010000000003070. .1. ..) COME TO THE DEALERSHIP TO CLAIM YOUR Tum?wmmpamnm'mm 00300005000000 000005155000. '00 00 mmrm: WRCHASE DUES NUT INCREASE ODDS OF WINNUIIE RENEWED. . MATH IF you march 3 symboi 1 05. 05000303 005 10 0000 00m 0000 00000 0001:00000000 amounis and/opens the locL/box I I, . VW CALL THE EVENT - 505 North Riverside Drive 355'547'2091 . Come 0 3 clairinyouiprizes1r .5 8 Bring This Nye: with youi WARDEN. GUNS I FAQ 1 LUST LATE 000000? .COITI =4 2 l-I Strata/161 Match a] PLAY INN WIN PINKS: anuvw A, OR $20,000 CASH 0003; 1:50.000. 20:: 0000000050 JITIA (0300 818.885). 2014 00 0mm 4-0100!- 321.350). 0 {10} IN DEERE GATOR 00 S: I 50000 MSRP 80.500. EXTRA 0 5t!? Fl A '1 0008: 1:50.000 VALUE 8470 0 $1,500 IN ERY TICKETS 0003: RANGE H1001 81-81500 IN SBHA CH 0FF LOTTERY TICKEISI - SEE TIBKET F00 0008 0F WINNING.) CliS TENNESSEE EGIONAL :11 "by l? OVOZE NL SANG UIUON 909 n; l? A A punt-u? it; I ?Li l? I 3003 IN . Scratch, Match, and If you Match 3 in a row (up, down, across, or diagonally) or your Key opens the lock box, YOU AWINNEROFONE Esme - -. - 000 00010 [If ?a GARY MATHEWS 866-547-2091 - VOLKSWAGEN KIA TUESDAY WEDNESDAY FRIDAY SUNDAY MONDAY FEBRUARYZS FEBRUARY 27 mam, MARCHI I 8 3M WM 8:3 9AM 6PM CLOSED EXHIBIT 'I-u *5 ff!? . I SW51 . amid 3mm 11v; Wm) :31 AHGM EMH FEM. 1 vaaNanHaa4..I 21333130 .. .55 fjjma 32:25:: 53312113433315?. GARY w: KIA EVENT DATES 3: SALE HOURSTummy: mam: ql_l (I. _1 .534U -o Edth 8730;17:13:00prr: Funny. Can-3'03? 35th 8:30am-9:06pm Saturday, Cast-er E?lh Su?-Clam 0:135:2- 27il- ":J?sncr Dear Customer. lshos?ngaspodal eventforthe public. Thlsevent vans, and with reduced pricing! - Individuals like you ?neness: eventGary .- Matl'lews VW K15 prideaJlself on bringing great value. a streamlined pmoes, and unheard ol=prices on our ofvehlcles. .guaranteed: LGreatselec?on 2. Super oonpe??va pridng 3. Incredible customer service 3 4. Follow up after the sale So ifyou areevensligh?y thinking of purchaslng avehicle in the near future, do not- miss this event! 5131? amass {imam lil?lr 0mm uni-S fii'iih (3193935 . 25 amarazs I 5131?? [ii-?131323 .. . HEEnf-i-f?r?L' MAKES aMobii? USED ?13523 STARTING FROM L?ruudu-J- .: TO CHOOSE 1? . ?munsm Palm . 31mm 1 mm a . 0mm 23 UBTHBEH 24 01:11:53: 25 1 UCTBBER 25 i umam 2? 9mm 23 . BISDHM -9PM 9? I 9AM - 5PM I CLOSED I 323 0.11M -9PM New VEHICLES - . a IN ?gpw AS .4 1 55'7". irlir' 3' 539'." ACTIVE AND RETIRED TEACHERE, POLICE, FIREMEN, CITY WORKERS, US ABOUT SPECEAL JUST FOR JULY 17m 525,000 WINNER - ANTHONY EVENT DISCOUNT BONUS MILITARY AND GOVERNMENT JULY 2013 I I WORKERS Bums a 51000 WINNER - BRITTANY I I -. SCREEN TV WINNER - til i I 1'31'281'2013 VOID AFTER 101'28f2913 .13 .. ,1 1 'j Ii your Irruuztl: . . ., -- three $25,000 bingo bails. mi: ?oum win is .399. $25,000 CASH "g Il? Till? {?lm'le [Hi liaWr": SHIAHH {all 3 Llh'?tl Ili?l?l It] .. .. I I POST-MISTER - TIME SENSITIVE ?In? a HUGH-M HEAUGUMIEES: 505 Null: DIM durimlra. 370110 r- Lt'nh- 1! mm In. rte-2L wI: mu: 1- i I .l'iJEXHIBIT YOU ARE INVITED TO ATTEND THE FIRST EVER I TATEWIDE l? . GARY MATHEWS VW KIA 505 Noth Riverside Drive 0 Clarksville, TN 37 040 800-42 1-47 80 THURSDAY FRIDAY SATURDAY MONDAY I MARCH 26 MARCH 27 MARCH 28 MARCH 29 MARCH so 1 GARY MATHEWS VW KIA 505 North Riverside Drive Clarksville, TN 37040 800-42 1-47 80 Tuesday, March 26th 8:3Oam-8200pm Wednesday, March 27th 8:30am-8:00pm Thursday, March 28th 8:30am~8:OOpm Friday, March 29th 8:30am-8:00pm Saturday, March 30th 8:30amo:OOpm Monday, April isi 8:300m-8100pm Dear Customer, Gary Mathews Volkswagen Kia in Clarksville, Tennessee is hosting a special event for the public in this ?Official Test Market Program.? This event features hundreds of cars, trucks, vans, and SUVs marked down to pennies on the dollar. Individuals like you were chosen to participate in this event. Gary Mathews Volkswagen Kia prides itself on bringing great value, a streamlined process, and unheard of prices on our inventory of vehicles. These are the things you are guaranteed: 1. Great selection 2. Thousands below market value 3. Incredible customer service 4. Follow up after the sale 80 if you are even thinking of purchasing a vehicle in the near future, do not miss this event! Dear Customer, During this event, Hundreds of Vehicles will be sold direct to the public. Cars, Trucks, Vans All at the lowest prices of the Year! All reasonable offers will be accepted. It doesn?t Let?s talk! Hurry in today to ?nd your vehicle! TUESDAY WEDNESDAY THURSDAY SATURDAY MONDAY MARCH 26 MARCH 27 MARCH 28 MARCH 29 MARCH 30 APRIL I Jut? . I (4) NO PAYMENTS VEHICLES AS LOW AS I EVENT DISCOUNT BONUS GARY MATHEWS VOLKSWAGEN KIA VOID AFTER I 505 NORTH RIVERSIDE onwe 4,1 12?13 CLARKBVILLE. IN 37040 $2,357.38 5 2 3 3 lull ?Ya-r; GARY MATHEWS -trf?w 3.15ACTIVE AND RETIRED TEACHERS, POLICE, FIREMEN, CITY WORKERS, US ABOUT SPECIAL INCENTIVES JUST FOR MILITARY AND GOVERNMENT WORKERS BONUS I GARY MATHEW: VOLKSWAGEN RIA 1mall) AFTER I 505 NORTH RIVERSIDE DRIVE 4,1;2013 I CLAHKSVILLEJN 31040 $1,500.00 [if TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY MONDAY ?3 MARCH 26 MARCH 27 MARCH 28 MARCH 29 MARCH 30 APRIL 1 1 8PM a ?a ?r 'g-b . q: BOARD BRAND NEW 2013 vw BEETLE 2013 KIASOUL 0' 50? FLAT, SCREEN TV 11.? ?mi .9 GARY MATH EWS cilia: $352; zgtizahzissi?gzx vw You HAVE 505 North Riverside Drive CAI-I- 300-421-4780 '0 I lei 3 Come To dealership To claim your prize! 800-421 '47 Bring ??is ?Yer Wiih you3.2I 5 I I TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY MONDAY MARCH ?26 MARCH 27 MARCH 28 MARCH 29 MARCH 30 APRIL I I Give You Top Dollar For Your 'll'ade MILEAGE AND CONDITION OF VEHICLE MAY AFFECT TRADE VALUE HUNDREDS OF VEHICLES TO CHOOSE USED Km CARS STARTING FROM '2 5 In =99: 1mg31m 493L?a'IItv Ir'. ENDLELSI Scratch 8 Match In Win! YOU COULD WIN lliSF. PRIZES: 0 20 3 BEETLE, 2013 KIA SO U1 . $20,000 CASH 0 DEERE CATOR $1,000 IN l7. RY - 50" FLAT SCREEN TV - PARKING Puma .4 . 7 2? PARKENG .5. PARKING PARIGNG PAIIKENG ADS 63026 U.S. POSTAGE PAID STD POSTMASTER - TIME SENSITIVE .sville. TN 37040 HEADQUARTERS 505 North Riverside Drive Ifyou Match 3 PARKING AMOUNTS in a row (up, down, across, or diagonally) or if your key opens the lockbox, YOU ARE QUALIFIED TO BE A LUCKY WINNER CALL: 800-421-4780 Have your Activation Code ready! Proceed to Kia I your prize! EXHIBIT IN THE CIRCUIT COURT OF DAVIDSON COUNTY, TENNESSEE FOR THE TWENTIETH JUDICIAL DISTRICT AT NASHVILLE STATE OF TENNESSEE, ex rel. HERBERT H. SLATERY Attorney General and Reporter, Petitioner, 2 v. GARY MATHEWS NORTH, INC., a Tennessee corporation, d/b/a GARY MATHEWS KIA, GARY MATHEWS VOLKSWAGEN, and GARY MATHEWS SELECT AUTOMOTIVE, Respondent. AFFIDAVIT OF TERRY CORBIN YARBROUGH STATE OF TENNESSEE DAVIDSON COUNTY I, Terry Corbin Yarbrough, an adult citizen of the State of Tennessee, make this Af?davit on personal knowledge. I understand that it may be used in legal proceedings. After having been duly sworn, I do hereby depose and aver as follows: 1. My name is Terry Corbin Yarbrough and I live at 439 Country Club Court, Clarksville, Tennessee, 37043. I am 53 years old. 2. I have been the General Manager of Gary Mathews North, Inc. doing business as Gary Mathews Volkswagen and Gary Mathews Kia since 2011 and personally authorized the following advertisements on behalf of Gary Mathews North, Inc.: a. Tennessee Regional Vehicle Clearance Event that took place from Tuesday February 25 - March 3, 2014; Initials b. The Inventory Reduction Event that took place from October 22 October 28, 2013; and c. The Statewide Vehicle Clearance Event that took place from March 26 April 1, 2013. 3. I have received, read, and understand all provisions of a copy of the Assurance of Voluntary Compliance entered into by the State of Tennessee and Gary Mathews North, Inc. on L, [3 2015. I understand that I am bound to comply with its terms in my fut?ure conduct. 4. I had the assistance of legal counsel of James Cameron when reviewing the Assurance of Voluntary Compliance. 5. All of the above is true and accurate to the best of my knowledge. MM may CORBIN FURTHER AFFIANT SAITH NOT. Sworn to and subscribed before me this day Q?Aw?w? . NOTARY PUBLIC NOTARY I. 2r My commission expires: ?5 Ra??Jr 2 TCY Initials EXHIBIT IN THE CIRCUIT COURT OF DAVIDSON COUNTY, TENNESSEE FOR THE TWENTIETH JUDICIAL DISTRICT AT NASHVILLE STATE OF TENNESSEE, ex rel. HERBERT H. SLATERY Attorney General and Reporter, Petitioner, V. GARY MATHEWS NORTH, INC., a Tennessee corporation, d/b/a GARY MATHEWS KIA, GARY MATHEWS VOLKSWAGEN, and GARY MATHEWS SELECT AUTOMOTIVE, Respondent. AFFIDAVIT OF ALTON GARY MATHEWS STATE OF TENNESSEE DAVIDSON COUNTY I, Alton Gary Mathews, an adult citizen of the State of Tennessee, make this Af?davit on personal knowledge. I understand that it may be used in legal proceedings. After having been duly sworn, I do hereby depose and aver as follows: 1. My name is Alton Gary Mathews and I live at 348 Fairway Dr., Clarksville, Tennessee 37043. I am 74 years old. 2. I am the sole principal owner and president of Gary Mathews North, Inc. doing business as Gary Mathews Kia, Gary Mathews Volkswagen, and Gary Mathews Select Automotive. 3. I have received, read, and understand all provisions of a copy of the Assurance of Voluntary Compliance entered into by the State of Tennessee and Gary Mathews North, Inc. on Edi) 2015. I understand that I am bound to comply with its 1.1 Initials in my future conduct. 4. I had the assistance of legal counsel of James Cameron when reviewing the Assurance of Voluntary Compliance. 5. All of the above is true and accurate to the best of my knowledge. FURTHER AFFIANT SAITH NOT. 1 I "L?r ALTON EWS Sworn to and subscribed before me this 3?day ofg 9522 ,2015. EH1 i x, (13'3" Ll?. If NOTARY PUBLIC ?11% .k {Jr} ?E-j . My commission expires?uid RU 2&2 AGM Initials IN THE CIRCUIT COURT OF DAVIDSON FOR THE TWENTIETH JUDICIAL DISTRICT am: an. a wtumucu HM STATE OF TENNESSEE, ex rel. HERBERT H. SLATERY Attorney General and Reporter, Petitioner, No. [agilqu V. GARY MATHEWS NORTH, I.NC., a Tennessee corporation, d/b/a GARY MATHEWS KIA, GARY MATHEWS VOLKSWAGEN, and GARY MATHEWS SELECT AUTOMOTIVE, Respondent. PETITION The State of Tennessee, by and through Herbert H. Slatery the Attorney General and Reporter, (?Attorney General?), at the request of Bill Giannini, the acting Director of the Division of Consumer Affairs of the Department of Cormnerce and Insurance (?Division?), ?les this Petition pursuant to the Tennessee Consumer Protection Act, Tenn. Code Ann. 47-18?107 (?Consumer Act?). 1. The Attorney General, acting pursuant to the Consumer Act, has determined that certain of Respondent?s acts and practices may constitute unfair and deceptive acts or practices affecting the conduct of trade or commerce in the State of Tennessee in violation of Term. Code Ann. and 47-18?120; and 47-18?124. 2. The State of Tennessee alleges, upon information and belief: a. Respondent is engaged in trade or commerce as de?ned by the Consumer Act at Tenn. Code Ann. Speci?cally, Respondent is in the business of offering for sale and/or selling automobiles to consumers which constitute goods as de?ned by the Consumer Act at Term. Code Ann. b. Respondent sent an advertisement to Tennessee consumers promoting a ?Regional Clearance Event? that took place from February 23 - March 3, 2014. Portions of the advertisement are included below. 1mm 0 9 :33? Scratch, Match, and If you Match 3 in a row (up, down, across, or diagonally) or your Key opens the lock box. YOU ARE A WINNER OF ONE OF THE LISTED CALL THE EVENT 866?54 7-2091 . . Have your Activation Code ready! Proceed to Gary Mathews Volkswagen Kia during event hours to ?nd out what you?ve won! 0. Respondent?s advertisement in Paragraph 2(b) contains representations that are deceptive, misleading, and/or otherwise unfair to consumers under the Consumer Act including: i. advertising vehicles available for purchase when such vehicles had already been sold; and ii. representing that a consumer had won $20,000 by scratching three $20,000 symbols in a row, when such is not the case. d. Respondent sent an advertisement to Tennessee consumers promoting an ?Inventory Reduction? event that took place from October 23 - 28, 2013. Portions of the advertisement are included below. '7 y" r' VHLH three 525,000 You COULD WIN A YOU HAVE $25, on CASH ll Hm?. Ul'i ?mm: MLHIH ?POSTMAHB - TIMI ?mum ICTWITIUH can: mm 3 ?mm Ull?gip?g??t 505 Nail Min-Ho Om mun ammoJill I 0' Uni"! ?93,013? ii. 5H ?t'li?U I?ulm'. .I I. 855-603-99?0 - ms e. Respondent?s advertisement in Paragraph 2(d) contains representations that are deceptive, misleading, and/or otherwise unfair to consumers under the Consumer Act including: i. representing that a consumer had won $25,000 by scratching three $25,000 symbols in a row, when such is not the case; and ii. representing that a consumer was a ?winner at our last event,? when such was not the case. f. Respondent sent an advertisement to Tennessee consumers promoting a ?Statewide Vehicle Clearance Event? that took place from March 26 April 1, 2013. Portions of the advertisement are included below. Scratch, Match, and Ifyou Match 3 PARKING AMOUNTS in a row (up, down, across, or diagonally) or if your key opens the lockbox, YOU ARE UALIFIED TO BE A LU WINNER CALL: 803-421-4780 Have your Activation Code ready! Proceed to Gary MathewsVW Kia during event hours to redeem your prize! g. Respondent?s advertisement in Paragraph 2(f) contains representations that are deceptive, misleading, and/or otherwise unfair to consumers under the Consumer Act including: i. representing that a consumer has won $20,000 by scratching three $20,000 symbols in a row, when such is not the case; ii. representing that the event was ?statewide,? when such was not the case; advertising special ?nancing offers next to each other when the offers are exclusive of one another; iv. advertising a speci?c payment immediately adjacent to new automobiles when the offer applies to an older vehicle not pictured; v. failing to clearly and conspicuously disclose immediately adjacent to each prize a statement of the odds of winning the prize or offer; vi. failing to state in immediate proximity and in the same size and boldness the retail value of the prize and the statement of the odds of winning the prize; and vii. failing to state the maximum number of persons in the group or purported group with the enhanced likelihood of receiving a prize in immediate proximity to each representation and in the same size and boldness of the type as the representation. 3. In accordance with the provisions of Term. Code Ann. the execution, delivery, and ?ling of the Assurance does not constitute an admission of prior violation of the Consumer Act. 4. The Attorney General, and the Respondent have jointly agreed to the Assurance and Agreed Final Order and join in their ?ling. The State of Tennessee requests that: 1. This Petition be ?led without cost bond pursuant to the provisions of Tenn. Code Ann. 20-13-101 and 47-18-116. 2. The Assurance be approved and ?led in accordance with the provisions of the Consumer Act. RESPECTFULLY SUBMITTED, #mbw f1}? HERBERT H. SLATERY Attorney General and Reporter Ema 009077 A sist Attorney General B. .R. 0. 032312 of the Tennessee Attorney General Consumer Advocate Protection Division Post Of?ce Box 20207 Nashville, Tennessee 37202-0207 (615) 741?1671 Email: jared.plunk@ag.tn.gov CERTIFICATE OF SERVICE I hereby certify that a true and exact copy of the foregoing Petition has been forwarded via certi?ed mail, postage prepaid, to: James W. Cameron Cameron Worley, P.C. Counsel for Respondent 112 Westwood Place, Suite 240 Brentwood, TN 37027 't A on this?! day of M63451, 2015.