Given the personal nature of this Agreement and its objectives and objectives, the Company expressly reserves the right to enter into a Ford sales and service agreement with individuals or other companies specifically selected and approved by the Company. California law is a good example of how this can work. It protects dealers from termination of their franchise by a manufacturer when the dealer agreement expires. If no new agreement is signed, the old agreement will simply continue. It cannot be terminated without allowing the dealer to be heard by the public administration, the New Motor Vehicle Board. Many states have laws to protect car dealerships, including California, Connecticut, Delaware, Georgia, Indiana, Louisiana, Minnesota, Nevada, and Washington, to name a few. If your state`s laws protect you, have your attorney write a friendly but firm letter to the manufacturer so they can be enlightened. Manufacturers deal with 50 state laws. It`s easy to believe that they know the laws of all states, but not in general. You have to tell them.
If you do, go to your legal department, which checks what your lawyer has written. If that is correct, they will withdraw normally. Many of these provisions could affect you if you are trying to sell your car dealership. For example, manufacturers are infamous for the fact that buyers have to sign contracts to expand the facilities after purchase. Many states have laws that limit how often manufacturers can require the extension or transformation of a facility. Where enlargement requirements are unreasonable due to economic circumstances, natural barriers within the market area or other relevant factors, a producer may often be prevented from requiring such modification until the distributor has given his consent. The New Motor Vehicle Board in California determines the reasonable grounds for termination, not the manufacturer. Refusal to sign a new dealer contract is not a reasonable ground for termination.
On the contrary, the failure to sign the agreement perpetuates the old agreement, so that the trader is not obliged to accept conditions other than those on which he made his initial investment. Erin Tenner has represented car dealers in buy/sell contracts for 30 years and is a partner at Gray Duffy LLP. It can be reached by firstname.lastname@example.org or 1-818-907-4071. Your lawyer can help you negotiate with the manufacturer. Before you consent in writing to the transformation or extension, find out if your state offers protection against inappropriate requirements. If you want to sign the agreement, make sure the agreement is specific and gives you enough time to conclude enlargement. . . .