4 ms·
I seem to recall that the laws were put in place, at least in part, to protect the dealers who were financing the manufactures, only to have the manufactures co
by rch 11y ago
I seem to recall that the laws were put in place, at least in part, to protect the dealers who were financing the manufactures, only to have the manufactures come in and sell directly once vehicles were ready.
- Asbostos 11y agoI'd have thought a contract between the dealer and manufacturer would have solved that. Why don't other industries need laws to protect retailers from manufacturers?
- msandford 11y agoBecause the manufacturer can bankrupt any one dealer since the finances are so difference, one has billions and the other has (maybe) millions. And once the dealer is out of business coming up with the money to sue for breach is a lot harder. There aren't a lot of other products that people are willing to travel for versus just buying at their local big-box like Target, Best Buy, etc. What other product category even comes close?
- rch 11y agoLook at the three-party alcohol distribution laws in Texas, for example. Many of these laws are being revisited now, but business was much different 50+ years ago.