Firms that specialize in the auto industry often have extensive access to networks of dealer attorneys throughout the United States, who regularly exchange information about issues and cases facing their clients. When local counsel is warranted, they know where to find it. There are very few full-service dealer law firms in the country, but if you have an out-of-the-ordinary issue, it is well worth the effort to locate an expert.
Many of the issues dealers face today are national in scope. The automobile dealer is one of the most regulated business people in America; much more so than, for instance, home builders. Most laws to which dealers are subject are federal in nature, as are most regulations. While there are individual state licensing laws, etc., eight out of 10 issues faced by dealers in today’s market involve laws and contract principles that are not local in nature. The franchise agreements themselves are national in scope. Manufacturers, rather than draft a franchise agreement which tried to comport with state laws, simply drafted agreements that benefit them most; forcing affected dealers to challenge the contracts or factory actions to which state laws may apply.
Why use an automotive legal specialist? Expertise.
Vol 4, Issue 10