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No, because the laws that protect exclusive dealerships against competition from the manufacturer are the only reason that dealerships exist (nobody would have
by qq66 13y ago
No, because the laws that protect exclusive dealerships against competition from the manufacturer are the only reason that dealerships exist (nobody would have invested money to build a business that could be shut down overnight).
What's interesting is that it's the car manufacturers themselves that lobbied for these laws to be enacted -- they wanted dealerships to be built, and knew that by tying their own hands they would reassure prospective dealers.
Of course, these laws shouldn't apply to companies that have no dealerships whatsoever -- it's not relevant to the purpose of the law.
- srgseg 13y agoIn other industries, this is often achieved with geographical non-compete clauses, rather than by the state banning direct sales.
- TylerE 13y agoAutos are a bit special, due to the needs for servicing and the physical size and un-shippability of same.
- srgseg 13y agoI don't understand the distinction you are making. A dealership can sign a contract with the manafacturer that can geographically restrict the manafacturer in any way that is necessary.