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What law protects car dealerships from unfair competition?

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Home » Automobile Dealer Law - Right To Protest » What law protects car dealerships from unfair competition?

Car sales can be a rough business, but that doesn’t stop new players from trying to get into it. Occasionally, some may violate state law in the attempt to get an unfairly large piece of the local market.

  • Why are car dealerships licensed by the state of Florida?

Many sales industries that involve large purchases are regulated in some way by the government of the state in which they occur. This includes real estate, motor vehicles and many other types of large asset transfers. One reason is to avoid the possibility of financial crimes based on ill-gotten gains. Another is the protection of staff and customers alike from the possibility of fraud and other issues related to large exchanges.

  • How could a car dealership’s license be cast into doubt?

The motor vehicle code in the Florida Statutes includes 40 specific possible violations that could lead a car dealership to temporarily or permanently lose its license. Most refer to fraudulent practices like hiding a known feature or nature of a vehicle, while several others refer to administrative issues like adhering to the terms of a licensing agreement. One of those violations is related to the right to protest a dealership that affects the local market of another.

  • What is that specific violation?

Dealerships always have the right to protest infringement on their market by a new entity selling comparable products to the same potential buyers. Any attempt by a new dealer to get another one to waive or reject that right would violate Section 320.64 of the motor vehicle code in the Florida Statutes.

  • How can a dealer make the case for a violation?

Any dealership looking to protect their market against unfair infringement can seek help from a lawyer to forward the matter. An attorney can make sure the fight does not take away from running a business.