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Tuesday, 3 May 2016

USA: Dealer prevails in Performance Dispute Win

A press release from Arent Fox LLP, Law Firm, explains how the firm won an important case, in which the plaintiff was Beck Chevrolet Co., Inc., on the selective and arbitrary imposition by vehicle manufacturers of unfair and unreasonable sales standards. The issue arose from the use of state-wide benchmarks, which failed to take account of local factors, and turned on  two provisions of New York’s Franchised Motor Vehicle Dealer Act. Many dealers in the UK might wish there was a similar law here ...

The case, Beck Chevrolet Co., Inc. v General Motors LLC 2016 NY Slip Op 03412, came before the New York Court of Appeals (Rivera, J) on certified questions from the United States Court of Appeals for the Second Circuit, and was decided on 3 May.

Arent Fox partner Russell P. McRory said:
Beck Chevrolet’s success will help stop manufacturers from implementing unfair and unreasonable sales standards that are selectively and arbitrarily applied, particularly when broad state or regional averages are applied to dealers located in markets bearing little resemblance to the state or regional benchmarks. This precedent could help set a new standard that will be referenced in performance disputes across the country.”
More information available from here.
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