Posts tagged as:

auto dealership protection laws

April 15 roundup

by Walter Olson on April 15, 2014

  • “Nullification” a non-starter, but states do have ways to resist federal encroachment [Amy Pomeroy, Libertas Utah, with podcast] Passport to Baraboo? State GOP resolutions committee backs “Wisconsin’s right, under extreme circumstances, to secede.” [Milwaukee Journal-Sentinel]
  • Flawed forensics: “DUI expert pleads no contest to perjury charges, gets house arrest and probation” [PennLive]
  • “Insurance: The Musical” turned out to be an April Fool’s, a pity since I was looking forward to the actuary production number [Insurance Journal, but see (David Skurnick, "Cut My Rate," set in California Insurance Department) and more ("The Sting")]
  • Executive power grab? New F.H. Buckley book on “The Rise of Crown Government in America” [Tyler Cowen, with Canada comparison]
  • My appearance on Anne Santos’s radio show discussing lawsuit culture [KNTH]
  • If General Motors objects to direct consumer sales freedom for Tesla, perhaps the answer is to set GM free too [Dan Crane, Truth on the Market; James Surowiecki/New Yorker, Adam Hartung via Stephen Bainbridge]
  • James Maxeiner on the Federal Rules of Civil Procedure after 75 years [Common Good]

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…but Alex Tabarrok offers some corrective regarding the structure of the auto dealership business, including the rent-seeking dealership protection laws that have snagged the startup automaker [Marginal Revolution, drawing on Francine Lafontaine and Fiona Scott Morton, “State Franchise Laws, Dealer Terminations, and the Auto Crisis”, Journal of Economic Perspectives, 2010).

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May 10 roundup

by Walter Olson on May 10, 2013

  • Electric-car maker Tesla doesn’t get many kind words from free market types, but here’s one [Coyote] More: North Carolina auto dealer lobby strikes back [News & Observer]
  • One lawyer’s selection of the worst lawyer billboards, though they’re far from the worst we’ve seen [John M. Phillips]
  • House hearings on litigation abuse and on litigation and international competitiveness [Judiciary, more, Point of Law]
  • Ninth Circuit cites conflict of interest, throws out credit reporting class settlement [Trial Insider; Daniel Fisher]
  • Private pensions, market-based water rates and more: “Australian travel notes from a policy wonk” [Alex Tabarrok]
  • “Use elevators properly. Riding outside of cars can be dangerous and deadly” [Scouting NY, seen in Bronx apartment building]
  • “It’s long been my view that blawgs, law blogs, are the greatest peer reviewed content ever created.” [Greenfield]

November 26 roundup

by Walter Olson on November 26, 2012

  • Car dealers sue Tesla for selling direct to customers [NPR via @petewarden]
  • Had the measure been “fatalities per 100,000 miles driven above urban speeds” this story might have been a good bit less “amazing” [Fair Warning]
  • No GOPers want to take away anyone’s contraception? Maybe Sen.-elect Cruz means no elected GOP officials [my new Secular Right post]
  • Trial lawyers, FDA, New York Times continue hot on trail of caffeinated energy drinks [Jacob Sullum, Abnormal Use, earlier]
  • Lawsuit aims to strike down SEC’s resource extraction disclosure rules [Prof. Bainbridge]
  • Quebec language muscle: “After series of fire-bombings, Second Cup coffee shops added the words ‘les cafes’ to signs” [Canadian Press]
  • The CPSIA effect, cont’d: more makers of kids’ apparel drop out rather than cope with CPSC rules [Nancy Nord] More: Katherine Mangu-Ward, Reason.

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Marc Hodak sees post-office-ization at work.

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“The House approved legislation on Thursday that would grant Chrysler and General Motors dealerships the right to challenge the companies’ decisions to close them in third-party arbitration.” The measure apparently has the support not only of Democratic leaders but of House Minority Leader John Boehner (R-Ohio). [NYT]

The New York Times’s editorialists are making sense.

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The supposed “bankruptcy” process that winds up sparing politically influential constituencies keeps rolling along: let’s hope the Senate can say “no”. [Detroit News via Salmon, Drum, Manzi ("seems only fair, as the dealers paid good money for these politicians")]

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May 16 roundup

by Walter Olson on May 16, 2009

  • At Reason “Hit and Run”, Damon Root deems a certain website “indispensable” [accolades file]
  • Montgomery Blair Sibley, colorful lawyer for the “D.C. Madam” and a figure much covered on this site, has new book out [Doyle/McClatchy]
  • Although Indian tribal litigators attacked it as “disparaging”, the Washington Redskins football team can keep its trademark, for now at least. “My ancestors were both Vikings and Cowboys. Do I have a course of action?” [Volokh comments]
  • “Is Patent Infringement Litigation Up or Down?” [Frankel, The American Lawyer]
  • Maryland high court dismisses autism-mercury lawsuit [Seidel, Krauss @ Point of Law]
  • Chrysler dealers are lawyering up against the prospect of being cast off [WSJ Law Blog]
  • “Should doctors who follow evidence-based guidelines be offered liability protection?” [KevinMD]
  • Obama proposes $1.25 billion to settle black farmers’ long-running bias claims against the U.S. Department of Agriculture [AP/Yahoo]

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April 30 roundup

by Walter Olson on April 30, 2009

  • “Sioux split on suit seeking money for Black Hills” [Associated Press]
  • More on nomination of Mothers Against Drunk Driving CEO to head highway safety agency [Balko, see also comments on earlier post]
  • Push by advocates in Congress to extend shakedown-enabling Community Reinvestment Act to all financial institutions [Victoria McGrane, Politico] And some numbers from Bank of America raise doubts about those oft-heard “CRA default rates lower than regular default rates” assertions [Weisenthal, Business Insider]
  • Illinois attorney general Madigan to Craigslist: purge vice ads or I’ll see you in court [L.A. Times]
  • Here and there, acknowledgments in the press of the damaging effects of laws entrenching auto dealers against termination [L.A. Times via Craig Newmark]
  • How many people get arrested for “contempt of cop”? [Coyote Blog] Blogosphere has helped spread awareness of police-abuse issues [Greenfield]
  • Virginia Postrel: I told you so on that light bulb ban story [earlier]
  • U.K. law reform panel: “charlatan” and “biased” expert witnesses put defendants at risk of wrongful conviction [Times Online]

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February 27 roundup

by Walter Olson on February 27, 2009

  • Long Island man fails badly in bid to make his estranged wife compensate him for kidney he gave her [NYLJ, earlier]
  • McDonald’s denies negligence in case of nude photos on customer’s left-behind cellphone [Heller/OnPoint News, earlier]
  • Role of union corruption in NYC crane collapses. Best tidbit: strippers offered apprenticeships [New York Times]
  • Because the Big Three need another millstone around their necks: states moving to entrench auto dealers’ nontermination/buyout rights yet further [Detroit Free Press via Mataconis, background]
  • Microsoft claims former employee “applied for a job at the company under false pretenses and then used his role at Microsoft to gain access to confidential data related to patent litigation he is now waging” [Seattle P-I, Andrew Nusca/ZDNet]
  • Settlement ends lawsuit by Cooper Tire & Rubber Co. against Mississippi’s Farese law firm and Ocala, Fla. attorney Bruce Kaster arising from leak of disparaging employee affidavit to press [Patsy Brumfield, NEMDJ, ABA Journal]
  • Mule drivers at historic tourism park must register for antiterror biometrics as transportation workers [Ken @ Popehat]
  • Lawyers advise defendant on trial for murder to go off his antipsychotic medication so he’ll come off as madder to the jury [nine years ago on Overlawyered]

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July 15 roundup

by Walter Olson on July 15, 2008

  • New York attorney suspended from practice after attempting as guardian to extract $853,000 payday from estate of Alzheimer’s victim [ABA Journal, Emani Taylor]
  • Bought a BB gun to fend off squirrels, now his 20-year-old son faces three years for bare possession [MyCentralJersey.com via Zincavage]
  • U.K.: “Sports clubs face being put out of business following a landmark court ruling forcing them to be liable for deliberate injuries caused by their player to an opponent.” [Telegraph]
  • Prosecutors in Norwich, Ct. still haven’t dropped their case against teacher Julie Amero in malware-popup smut case. Why not? [TalkLeft, earlier]
  • Dealership protection laws, deplored earlier in this space, work to make a GM bankruptcy both likelier and messier [The Deal]
  • Strange new respect for talk show host Joe Scarborough in quarters where conservatives are ordinarily disliked? Some of us saw that coming [NYMag]
  • Following Rhode Island rout of lawsuit against lead-paint makers, Columbus, Ohio drops its similar case [PoL, Akron Beacon Journal editorial]
  • In latest furor over free speech and religious sensitivity in Europe, Dutch authorities have arrested cartoonist “suspected of sketching offensive drawings of Muslims and other minorities” [WSJ; "Gregorius Nekschot"]

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State laws providing a kind of tenure protection for no-longer-needed car dealers are among the reasons it can be extremely expensive to close down a failing marque. General Motors, which closed Oldsmobile eight years ago, “spent more than five years battling dealer lawsuits” despite having set aside almost $1 billion to handle the transition, and Ford may face similar challenges if it tries to shutter its ailing Mercury line. (Martin Zimmerman, “Mercury may be coming to the end of the road”, Los Angeles Times, May 10). Earlier: Oct. 5, 2006. For more see this 2001 speech by FTC commissioner Thomas Leary, and this article by Missouri lawyer Gene Brockland on the federal Auto Dealers’ Day in Court Act, which is exceeded in stringency by some of its counterpart laws at the state level.

Tenure for auto dealers

by Walter Olson on October 5, 2006

Worsening Detroit’s agonies: special laws at both state and federal levels expose automakers to lawsuits from dealerships that they try to cut loose as superfluous. Does GM want to reduce the number of Chevy dealerships in, say, Buffalo, to reflect its declining market share there or falling population? Then it’ll have to come up with millions to induce dealers to accept buyouts. The laws don’t inflict a comparable burden on automakers whose fortunes are on the upswing, such as Toyota and Honda. (Joann Muller, “Dealer Surplus”, Forbes, Oct. 16).

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