It's part of an old set of laws that were put in place to protect dealers. It kept a manufacturer from selling a market to a dealership, allowing that dealershi

It's part of an old set of laws that were put in place to protect dealers. It kept a manufacturer from selling a market to a dealership, allowing that dealership to expand the market in the area for them and then moving into that market on their own. Meaning, Ford sells a dealership the Los Angeles region. The dealer spends money advertising how great Fords are in the local market. Sales go up. Ford decides to open its own dealership in Los Angeles and compete directly with that dealership. The law was useful a long time ago. However, it shouldn't apply to manufacturers who don't have dealerships that need protection. Entrenched businesses are using that law to keep out competition.