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Massachusetts Supreme Court rules for Tesla in franchise fight

Discussion in 'News' started by danp, Sep 15, 2014.

  1. danp

    danp Member

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    SJC rules for Tesla in fight with car dealers - Metro - The Boston Globe

    "...Massachusetts State Auto Dealers Association...did not have legal standing to block Tesla’s business approach under a state law designed to protect franchise owners from carmakers"

    Nice to see on a day of carnage for TSLA. Hopefully NADA and other states will take note of this.
     
  2. RobStark

    RobStark Active Member

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    And the ruling is Unanimous.:tongue:
     
  3. adiggs

    adiggs Active Member

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    The Massachusetts law, and now this confirmation of how it works, has always made the most sense to me about the franchising laws in general. Nice to see a state where it looks like we have clarity.
     
  4. Jackl1956

    Jackl1956 Member

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  5. loganss

    loganss Spaceman

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    I liked the summary from thestreet article which was as followed:
    http://www.thestreet.com/story/12879954/1/why-tesla-tsla-stock-is-higher-in-after-hours-trading-today.html

    Looks like it's a good thing Tesla didn't go halfway in the beginning and allow vehicle sales through dealers.
     
  6. Krugerrand

    Krugerrand Active Member

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    Sometimes justice is served.
     
  7. rolosrevenge

    rolosrevenge Dr. EVS

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    I think that the dealers are going to regret ever starting these fights.
     
  8. dsm363

    dsm363 Roadster + Sig Model S

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    Totally agree. All they did was bring attention to it and reinforce how much people hate most dealerships.
     
  9. Electric700

    Electric700 Member

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  10. TexasEV

    TexasEV Active Member

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    What's great about the Massachusetts ruling is the court said the auto dealers didn't have standing to sue. One of our attorney owners please chime in here, but I think in layman's terms it means they were not an injured party so it's none of their business how Tesla does business. Finally someone told the auto dealers cartel they don't have the exclusive right to sell a product from a new company just because it happens to be a car.
     
  11. kennybobby

    kennybobby Member

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    Good news indeed.
     
  12. EdA

    EdA Model S P-2540

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  13. brianman

    brianman Burrito Founder

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    This is priceless:
    What sane impartial voter would be "for" the underlined?

    - - - Updated - - -

    Nice quote, Ed.
     
  14. rolosrevenge

    rolosrevenge Dr. EVS

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    Interestingly when I was talking to my parents about the issues they said that they'd prefer going to a dealer, but hate the idea that others shouldn't have a choice. I agree that the market should decide.
     
  15. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    There's plenty of room for both, although the dealers would have to do a lot to get my willing business (as opposed to forced business).
     
  16. Seven7

    Seven7 Member

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    I can't remember ever leaving a traditional car dealership and thinking to myself that I just had a great experience
     
  17. SebastianR

    SebastianR Member

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    Yes. Places like Germany have both models co-exist. Apple shows that you can sell iPhones in Best Buys and the Apple store etc. There is really no reason to believe that a business model that works like a charm for literally hundreds of industries shouldn't work for cars.

    Anyways, good to have this ruling. But I still can't believe that it's easier to buy an American made Tesla Model S in "communist" China than in "free market" Texas...
     
  18. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    In Texas all you do is:

    1. Go online and configure your car.
    2. Press buy
    3. Send money.
    4. When the car is ready, pick up your Tesla at the Service Centre (or have Telsa deliver it if you're far away from an SC).
    5. Take the paperwork to the county tax office, pay sales tax and pick up your plates.

    In states where the NADA hasn't bought the legislators, the difference is only step 5.
     
  19. JohnQ

    JohnQ Active Member

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    All true, except you can't get a test drive unless you a) fly to another state or b) know someone who owns one.
     
  20. TexasEV

    TexasEV Active Member

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    The buying is easy as jerry33 notes above. The issue is selling, not buying. Tesla can sell its American-made cars in communist China but not in Texas. I happened to be meeting with a Tesla PR person the day they started selling in China and suggested that would make a good tweet, but she didn't take me up on it.

    Not selling means store personnel in Texas can not talk about the price or actually make the sale. When Texans buy Teslas the online sale technically takes place in California. But it's not just people in Europe who are confused about this. Lots of people in Texas ask me if I had to go out of state to buy it.
     

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