Legal Corner: Heroes I’ve Known: Marvin Ivy

Heroes I’ve Known: Marvin Ivy

In the 2019 Tom Hanks film, “A Beautiful Day in the Neighborhood,” a cynical reporter is assigned to interview Fred Rogers as part of a series of magazine articles on heroes. Rogers had created the PBS program, Mr. Rogers’ Neighborhood, a program acclaimed as bringing positive values to generations of young people. Although the reporter at first felt the assignment was beneath his professional level and reputation, he ended up admiring Rogers and having his life changed for the better during the course of the interviews.

I’ve met many people over four and a half decades of representing TIADA and among those were more than a few whom I would refer to as heroes — folks who changed the businesses and lives of those who came along after them for the better. One of the first that comes to mind under the heading of hero would be Marvin Ivy, a past president of TIADA and NIADA.

Ivy was in fact a hero before he opened Marvin Ivy Motors, his independent dealership in San Antonio. He was a veteran of World War II who participated in the D-Day landing in Normandy and the Battle of the Bulge. His contributions to the war effort resulted in being awarded the Purple Heart and the Bronze Star.

And just as few people were aware of his heroism in the defense of our country, few people today are aware of the contributions that he made in fighting government over-regulation and in turning the National Independent Automobile Dealers Association into the powerful trade group for independent dealers it is today.

I first met Marvin in 1976 when he was a TIADA vice president and I had just been hired as association counsel. One of my first assignments for TIADA was to familiarize myself with the just-issued FTC Proposed Trade Regulation on Used Cars and to make recommendations to association leadership on how to respond. The proposal contained a mandatory 72-hour cooling-off period and required dealers to post a list of component systems marked “OK” or “not OK.” The effect was that marking “OK” on anything created an express warranty. There was no organized opposition nationally, and only a few state associations had filed statements in opposition to the proposed rule. Yet it was clear that the proposed rule, if implemented, would severely hamper the ability to market and sell used cars to a large portion of the buying public.

As part of its investigation into alleged consumer abuses in the used car industry, and in attempting to gather information about dealer practices, the FTC had mailed out thick questionnaires to a few randomly selected dealers around the country. Unfortunately for the FTC, it had chosen Marvin Ivy as one of the recipients of the lengthy and time-consuming questionnaire.

Ivy immediately contacted his congressman, Bob Krueger, to complain of the heavy-handed treatment he was receiving from the FTC. Rep. Krueger (later to serve as U.S. Senator) would

by Michael W. Dunagan

TIADA COUNSEL

I’ve always marveled at the way that some modest, unassuming men emerge in a time of crisis to successfully take on the mantle of leadership, then quietly fade back into the background after their task is completed. Ivy was such a man.

become a major ally of dealers in fighting the proposed rule. Frustrated by the inability of NIADA to finance an organized effort in opposition to the proposed rule, Ivy called a meeting of state IADA leaders in Atlanta and put up his own money to fund the meeting. The late Irv Berrier, then executive vice president of TIADA, and I joined Ivy in representing Texas.

From that meeting in 1978, the blueprint of the modern-day NIADA emerged. It was agreed that Ivy would seek the presidency of NIADA. Even before his election, he had begun the efforts to recruit NIADA’s first full-time, professional executive. Dan Ray, who had worked for the U.S. Chamber of Commerce, and had legislative experience in Washington, D.C., was hired to (1) modernize NIADA and grow its membership; and (2) organize a campaign in opposition to the FTC rule.

As NIADA president, Ivy led the effort to raise funds to pay for the new executive and to bring in an experienced lobbyist who could carry the fight to congress. A nation-wide petition drive was successful in publicizing to the dealer body the disastrous effects that would be brought about by the rule, and in recruiting new blood into NIADA membership and leadership roles. TIADA experienced a surge in new members as a result of the petition drive.

By the time the opposition effort got into full swing, however, it appeared that the rule was on its way to passage. One savvy political analyst told us that it was like batting in the bottom of the ninth, down five runs, with two outs, no one on base, with two strikes on the batter. But the furious letter-writing, petition gathering, and lobbying efforts led by Ivy helped get Congress to enact legislation giving itself veto power over rules it deemed to be excessively intrusive into private enterprise. With the threat of a congressional veto, the FTC amended the proposed rule by dropping the three-day cooling-off period and the mandatory “O.K.-Not O.K.” provision, and offered a much watereddown rule (the so-called “buyer’s guide” rule that we have today).

That Ivy never got the credit he deserved for his role in fighting the FTC rule and propelling NIADA into prominence was not a problem for him. He never sought attention or praise, only results.

Ivy also served as president of TIADA in 1980. He served several terms as chairman of the TIADA political action committee and was always the first to contribute during fund-raising campaigns. Ivy and his wife Lorraine attended almost all TIADA conventions and board meetings. Any time a meeting was scheduled in San Antonio (always a popular destination) Ivy made sure the accommodations and service were first class.

I’ve always marveled at the way that some modest, unassuming men emerge in a time of crisis to successfully take on the mantle of leadership, then quietly fade back into the background after their task is completed. Ivy was such a man.

Every time a dealer posts a buyer’s guide, he can thank Marvin Ivy that he doesn’t have to grant a 72-hourcooling-off period and doesn’t have to give a mandatory warranty on the vehicle.

Marvin Ivy died in 2008 but his legacy as a hero, patriot, family man, industry leader and independent car dealer lives on.

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Editor’s note: This is the first in a series of articles by Michael Dunagan called “Heroes I’ve Known.” Each of these articles focuses on significant people who have helped to shape the independent dealership industry.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.