Dealership Statutes vs. Contracts: Navigating the Maze

Relationships between Manufacturers and Dealers take many forms. Some are extraordinarily collaborative and involve a great deal of mutual input regarding equipment, facilities, staffing, markets and other competitive issues, while others take a more “top-down” approach, with the manufacturer dictating most of the rules pertaining to how and when its equipment is bought and sold. State equipment dealer statutes commonly alter this arrangement to a greater or lesser degree (generally, to the benefit of dealers), depending on where the parties are located and which statute(s) might be found to apply. Not surprisingly, dealership agreements tend to (imperfectly) reflect this; some being as short as a few pages; with others going on for 100 pages or more. Knowing what, if any, protections you already have, and what you need to negotiate into a dealership agreement can save you a tremendous amount of time, not to mention legal expense, but preparation is key. READ FULL ARTICLE