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Automakers are not allowed to play dealerships against each other

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The world of car sales is exciting in positive and negative ways. Success can mean quick expansion and the ability to create jobs for the community. But margins can be small and any interruption in business could mean financial disaster as new models age with each passing day.

Few things are predictable, even competition. But Florida has laws that constrain reckless strategies in the market like stacking distributors of the same motor vehicles in the same territory. If dealers think their business is being choked off by a practice like this, they have the right to protest with the government in Tallahassee.

“Historically speaking, if you go back and look at the legislative history of these statutes, in this state and nationwide, they always cite a history of the bigger business taking advantage of the smaller business,” said an attorney who practices car dealership law including the right to protest.

This right prevents manufacturers from executing poor strategy as well as other potential dealers. For example, makers of cars and trucks are not allowed to approve or sponsor a dealership in direct competition with another that offers the same selection without proving that the first dealer is not doing a good job.

Dealers who have a case for violations of these statutes have the right to protest with the representation of an attorney. A lawyer can help determine which statutes of Florida law are at issue with a specific case and help a dealer keep the market that has been earned with savvy business skills and work building customer relationships.