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Section 25

Continuing Education Requirements / Recent Changes


25.3 Contract Language Translation - Spanish, Chinese, Korean, Tagalog, and Vietnamese

Photo of Asian Woman
California law requires dealers who negotiate conditional sales contracts or lease contracts primarily in Chinese, Korean, Spanish, Tagalog, or Vietnamese to:
  1. Provide a written translation of the contract in the primary language the contract was negotiated; and
  2. Display a notice in the language the contract is negotiated, stating that a contract translation is required to be provided to the customer. Federal law still requires dealers that conduct sales in Spanish to have the “Buyer’s Guide” and contract disclosures in Spanish.
Situation
Procedure
Using an Interpreter

If a customer uses an interpreter, the interpreter:

  1. Must be able to fluently speak and read both English and the language being translated
  2. Must be 18 years of age or older
  3. Cannot be an employee of the business offering the contract
  4. Cannot be a person whose service is made available by the business negotiating the contract
Written translation required BEFORE signing the contract

Before a customer signs a contract/agreement that was negotiated primarily in Chinese, Korean, Spanish, Tagalog, or Vietnamese, give the customer:

  1. A written translation of the contract in the language it was negotiated.
  2. Time to review the document and, if necessary, consult with others about the terms.
Sale negotiated in Spanish - Buyer’s Guide rule When negotiations are conducted in Spanish, a Spanish translation of the “Buyer’s Guide” must be posted/displayed on the vehicle before the vehicle is discussed with the customer.

To order the “Buyer’s Guide,” contact your dealer association or form company provider.

NOTE: The English language terms of the contract determine the rights and obligations of the parties.
NOTE: An instructor, secretary, or representative is not an authorized signatory for the DL 396, the DL 396A, or the DL 396B.
Sources:

California Civil Code §1632 Code of Federal Regulations, Part 455


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