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Mass. High Court Rules in Favor of Tesla

September 16, 2014

BOSTON —The Supreme Judicial Court of Massachusetts ruled Monday that Tesla Motors is allowed to sell directly to consumers in the state, upholding a lower court’s ruling against dealers who challenged the automaker in a lawsuit, reports wbur.org.

The Massachusetts State Automobile Dealers Association argued that a 2002 change in state law barred manufacturers from owning dealerships, but the court stated that the legislation was “aimed primarily at protecting motor vehicle dealers from injury caused by the unfair business practices of manufacturers and distributors with which they are associated, generally in a franchise relationship,” according to the ruling.

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  1. 1. Bubba B [ September 17, 2014 @ 11:50AM ]

    What's the consensus on here about this ruling. Tesla occupies such a small segment of the market that I don't think it would have much of an effect on franchised dealers. I suppose they'd be the biggest threat to luxury dealers - aka BMW, Mercedes, etc.? Hello Fletcher Jones. Our group has stores in CA and AZ - I imagine they'd be virtually no threat to our AZ stores and little threat to CA (although CA's politics are similar to those in Mass.). I think Elon Musk has the savvy and power to take this to the supreme court and they'll rule that Tesla can operate selling directly to the consumer.

  2. 2. Sheldon Wolff [ September 17, 2014 @ 03:13PM ]

    America prosperity is based on the free enterprise system. When automobiles were a luxury franchising them was an efficient distribution system the evolved over the years. Today everyone needs some sort of transportation. Many companies sell direct to consumers. Many food chains also sell direct to the consumer. These vehicles at this point are a vision of the future that the big 3 American manufacturers have avoided because of the oil companies. This will create more competition and better choices for consumers in general. Let tesla sell all they want, hey big three and foreign mfgrs,, get your act together, if there wasn't a demand , then they wouldn't be selling them, and you wouldn't be trying to restrict fair trade!

  3. 3. timothy [ September 17, 2014 @ 09:19PM ]

    Small insignificant company. Free enterprise.
    Morons, when Toyota, Ford, etc. enters into this 'free' market and thousands of decent paying jobs become crap jobs, and more Americans find less enterprise because of lesser wages all around (as in the present non economic recovery), you teenagers might figure out that 'free' enterprise is not without regulations.
    None of which addresses the long term cost to consumers.
    Global companies will never act in the interest of your town, your state, or your Country. Be careful of what freedoms, that are ours, you happily cede to others because it rhymes with a jiggle you heard on TV.

  4. 4. Walter Ford [ September 18, 2014 @ 06:49AM ]

    Bravo, The lobby and funding of the "automobile dealers association" is very powerful. It is great to know that they don't have the power to buy judges. Name one business entity that elicits more distrust that an "auto dealer". Their entire business model is set up to charge the consumer the very highest possible price for goods and services. If you have any part replaced on your car by a dealer you will pay almost double what the exact same part cost at an auto parts store. The auto dealers association is in business solely to protect the interest of the auto dealers. And Timothy, check with any auto executive and he will tell you that they don't want to get into the dealership business because of the liability issues. And Timothy, if the manufacturers ever decided to sell direct this would be handled by union labor at union wages, with union benefits - THINK ABOUT IT!

  5. 5. timothy [ September 18, 2014 @ 03:57PM ]

    Sorry but you're wrong if you believe that they don't want into the retail end of it. They've tried - hence the many dealer protection laws. And the unions are mostly beat down has-beens that do little and then even less for the dues paying members (ie two tier wage contracts). Union management protects their own high paying jobs.
    I'd love strong unions in the south but it's not gonna happen. The unions created the American middle class and as they die, so does our standard of living. I mean come on, the AFL-CIO supports the amnesty bill!
    When's the last you heard any union protesting American jobs being sent out of the country?
    Huge corporations are self serving. Huge Global corporations are worst.
    Most independent auto dealers do a really good job. But when when the manufacturers own the retail end, you'll talk to someone in Asia to schedule an oil change.
    Follow how hard the manufacturers fight any recall, even ones that prove fatal (GM). That's what the level of service will be like when they own the stores.
    I wish I was wrong, but I'm not. Thanks for a intelligent opinion anyway.


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