Posts Tagged ‘auto dealership protection laws’

April 30 roundup

  • “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]

February 27 roundup

  • 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]

July 15 roundup

  • 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”]

Another burden for legacy automakers

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

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).