Automobile Dealers – Do You Really Have a Right to Refuse New Vehicles?

According to a recent article in the NY Times:

The Chrysler Group said Monday that it had not yet accounted for tens of thousands of cars in its inventory numbers, which are already considered high by industry standards. Chrysler said it had routinely excluded these vehicles, worth billions of dollars, from its tally of unsold cars and trucks because they had not yet been assigned to a specific dealer or ordered by a customer. (New York Times, October 24, 2006)

When I began learning about the automotive industry, dealers and manufacturers had a name for manufactured, but unordered vehicles. That name was: “sales bank.” The “sales bank” is a practice that the manufacturers allege they abandoned after being ravaged by the system during the oil crises of the 1970s.

By the early 1980s, when the dust settled, Automotive News was running stories like:

Ernest D’Agostino of Rhode Island filed suit, in the U.S. District Court against Chrysler Corporation, alleging Chrysler terminated his franchise because he refused to buy “gas guzzlers” — large cars with low gas mileage. A federal court jury found against Chrysler and Chrysler, in an unreported case, appealed. Chrysler agreed to drop its appeal and paid D’Agostino a settlement (Automotive News, October 1982); and

Fred Drendall, of Drendall Lincoln-Mercury/Pontiac sued Ford Motor Company alleging that when he attempted to cancel orders he was intimidated by Ford spokesmen and when he bowed to the pressure and ordered the vehicles, the high flooring costs forced him to refinance his dealership. He was eventually was terminated and suffered a heart attack. (Automotive News, December 1982).

Those were hard times in the car business.

Today, most Sales and Service Agreements have provisions such as the following:

2. (D) STOCKS. The dealer shall maintain stocks of current models of such lines or series of VEHICLES, of an assortment and in quantities as are in accordance with Company GUIDES therefor, or adequate to meet the Dealer’s share of current and anticipated demand for VEHICLES in the DEALER’S LOCALITY. The Dealer’s maintenance of VEHICLE stocks shall be subject to the Company’s filling the Dealer’s orders therefor. (Ford Motor Company, Mercury Sales and Service Agreement, Standard Provisions.)

Most states, however, have Dealer Day in Court Acts with provisions such as:

Art. 4413(36), SUBCHAPTER E. PROHIBITIONS. Sec 5.02. Manufacturers; Distributors; Representatives. (b) It is unlawful for any manufacturer, distributor, or representative to: (1) Require or attempt to require any dealer to order, accept delivery or pay anything of value, directly or indirectly, for any motor vehicle, appliance, part, accessory or any other commodity unless voluntarily ordered or contracted for by such dealer. (Texas Motor Vehicle Commission Code)

It shall be unlawful and a violation of this code for any manufacturer, manufacturer branch, distributor, or distributor branch licensed under this code to coerce or attempt to coerce any dealer in this state: (a) To order or accept delivery of any motor vehicle, part or accessory thereof, appliance, equipment or any other commodity not required by law which shall not have been voluntarily ordered by the dealer. (Section 11713.2 California Vehicle Code)

In addition to state laws, the National Dealer Day in Court Act also proscribes manufacturer and distributors from coercing a dealer into accepting “automobile, parts, accessories, or supplies which the dealer does not need, want or feel the market is able to absorb.” 1956 U.S.Code.Cong. & Admin.News, page 4603.

But, the law is always a two-edged sword and there is generally a fine line drawn between actions that are proper and actions that are improper. For example, it has long been settled that a dealer’s refusal to take all of the manufacturer’s line of vehicles, choosing instead to sell a competitor’s models, is grounds for termination. See, for example: Randy’s Studebaker Sales, Inc. v. Nissan Motor Corporation, 533 F.2d 510 (10th Cir. 1976), at 515.

Consequently, prior to deciding whether to accept or reject delivery of vehicles, a dealer should check with a competent automotive attorney, that is familiar with the laws in the jurisdiction where the vehicles are to be delivered, with respect to his or her particular circumstances.

Note: This article is not intended to provide legal advice, nor should it be interpreted as so doing.

Are Mopar Parts Are the Best Choice For All Chrysler Vehicles?

Mopar Parts Are The Best Choice For All Chrysler Vehicles

When it comes to replacement automotive parts, Mopar parts are the most sought after for use in Chrysler vehicles. Mopar, an acronym for motor parts, is the official parts and service division of the Daimler-Chrysler Corporation. Mopar is a name and that is known for precision fit and quality that Chrysler product honors with to with confidence.

The Mopar concept is about being sure that replacement parts will fit your car just like the original equipment. Since genuine Mopar parts are manufactured by the same people who engineered and built the original vehicle, car owners can be sure the parts will perform with reliability.

The Mopar name was first used by Chrysler over eighty years ago and has been considered to be synonymous with quality and dependability in terms of both repair and modification. Over time, the term ‘Mopar” was given broader usage among many car enthusiasts and now it is often used to refer to any Chrysler brand parts, or the automobiles themselves, including Dodge and Plymouth cars. After Chrysler’s purchase of the AMC and Jeep vehicle brands around twenty years ago, the name was applied to them as well.

In addition to replacement repair parts for Chrysler automobiles, the company produces after market modification parts designed for performance on both street and dragstrip machines. Mopar is a term well known in relation to power enhancement and automotive racing equipment.

Original equipment, or OEM parts, means they are guaranteed to fit and perform perfectly. In fact, they are warranted just the same as original equipment on a Chrysler built vehicle. They are considered to be covered by some of the strongest warranties in the all the automotive industry. This is a statement few other parts manufacturers can lay claim to.

Mopar not only provides parts for newer vehicles, but also antique parts and accessories for Chrysler produced cars. Mopar antique parts are precisely designed and engineered to be exactly like the original parts the cars were equipped with. Antique Mopar parts must pass the same equipment tests and standards that were used in the original production of the vehicles.

The company takes care to be sure that only the highest quality materials are used and will fit exactly. The main advantage of Mopar products is that they are considered to be highly superior in comparison to other non-original antique auto parts that are available on the market. The Chrysler vehicle types have a very impressive reputation in the automotive industry among users all around the world. Car part makers such as Mopar have a name to protect and they make sure that all the products they produce will maintain the good reputation they have been able to earn in their many long years of serving Chrysler customers.

Mopar parts also have the reputation for being easy to find. Buyers especially have little difficulty in locating the items they need through the technology of on-line marketing. An amazingly vast array of stores are out on the Internet net for buyers to obtain just about any part or accessory. Without a doubt, Mopar parts are the best choice for replacement in Chrysler automobiles.