4 ms·
Why would you need any kind of such laws in a free market?
by mikkom 12y ago
Why would you need any kind of such laws in a free market?
- TheHypnotist 12y agoBecause they would easily put franchise dealers out of business.
- msandford 12y agoAlso because the franchises weren't sold with an expiration date so for the manufacturers to start selling direct might be some kind of a breach of contract. But it'd take FOREVER to play out in the courts, and made worse by the fact that it's a national thing so you might not be able to consolidate it all down to one case in one federal court. It might be 50 class action suits in 50 states with several different outcomes.
- TheHypnotist 12y agoYeah, I think the idea here is it would just be a nightmare for everyone. Also, dealer's employ lobbyists.
- a_c_s 12y agoIf dealers would all go out if business if they had to compete fairly, then doesn't that suggest they might not be providing customers with much value? While I do think market interventions are sometimes justified, in this case it seems we are protecting dealers for their own sake.
- TheHypnotist 12y agoIt wouldn't be competing "fairly" if they had to compete with the guys they buy their product from.
- avn2109 12y agoOops accidentally upvoted you. As somebody else mentioned above, Best Buy competes just fine with Apple while buying their products. So it's not impossible/unfair.
- TheHypnotist 12y agoThat would be a matter of convenience and a ton of other factors. You really are comparing two totally different things.
- mikkom 12y agoIf they can't compete without laws that protect then they disappear - that is how free market works.