Angiulo: Tesla Motor Vehicles Greet Their Competitors in Massachusetts with a Legal Victory
Monday, September 22, 2014
The Supreme Judicial Court (“SJC”) issued their opinion on September 15, 2014, but the case began in October of 2012. The legal argument centers around the contents of Chapter 93B of the Massachusetts General Laws, which regulates the business practices of Motor Vehicle manufacturers, distributors and dealers. Specifically, the court was asked to answer the question of whether the plaintiffs, including the Massachusetts State Automobile Dealers Association, could use the terms of chapter 93B to prevent Tesla from operating their own stores in Massachusetts.
The facts at the heart of the case appear to be all about the bottom line. The dealerships wanted the court to stop Tesla because a manufacturer owned store had the ability to avoid financial costs that dealerships bear and therefore must pass on to customers. The plaintiffs were functionally advocating for a broad reading of the statute that would make it applicable to competition practices whether or not the plaintiff was affiliated as a dealership to the manufacturer.
The Supreme Judicial Court rejected the plaintiffs' arguments and decided they did not have standing to bring a claim against the defendants under the statute in question. In doing so, the court focused on the purpose of Chapter 93B as preventing unfair competition between manufacturers and those dealerships operating under franchise agreements with that particular manufacturer. In practical terms a company can't undercut the prices of their own franchisees by opening their own stores and selling at discount rates.
For those not in the know, the legal term “standing” is roughly defined as a parties' eligibility to bring suit. When the Supreme Judicial Court dismissed this suit, they were saying that without a law governing the relationship between these parties there was no issue for the court to be involved in. Without a valid legal claim, the plaintiffs are left with a factual scenario that they disapprove of, but have to live with based on this ruling.
Interestingly, the facts of this case appear to be squarely at the intersection of the new and old economies. On the one hand you have technological innovators bringing exciting products to market in unique ways. On the other hand are the old-line businesses that often serve as the bedrock of small towns in Massachusetts, employing sales staff and maintenance people while consistently paying local taxes. The SJC spent considerable time documenting the history of Chapter 93B and how, over time, it focused on leveling the playing field between dealers and manufacturers because of abuses that developed in the market. If new abuses are identified in the new economy, perhaps it is only a matter of time before new laws are drafted to combat them. Or maybe, the rough and tumble world of business will regulate itself.
Related Articles
- Leonardo Angiulo: The Evolution of Federal Sentencing Guidelines
- Leonardo Angiulo: U.S. Supreme Court Renews 2nd Amendment Debate
- Leonardo Angiulo: A Good Day for FBI, A Bad Day for Politicians
- Leonardo Angiulo: When a Car Accident Isn’t Just an Accident
- Leonardo Angiulo: Freedom of Information in Action
- Leonardo Angiulo: Legally Speaking, What is Intent to Distribute?
- Leonardo Angiulo: Medical Decision-Making in the Case of Children
- Leonardo Angiulo: Keeping The Powerful From Abusing Our Money
- Leonardo Angiulo: Signing A Release - The Price of Admission
- Leonardo Angiulo: The Consequences of Cohabitation
- Leonardo Angiulo: The Limits of the Presumption of Innocence
- Leonardo Angiulo: Money in Politics
- Leonardo Angiulo: US Incarceration Rate May be Unsustainable
- Leonardo Angiulo: Further Refining the Investigation of Marijuana Offenses
- Leonardo Angiulo: Dissecting the Proposed MA Firearm Legislation
- Leonardo Angiulo: Changing the Standard for Sealing Criminal Records in MA
- Leonardo Angiulo: Expunging Criminal Records for Victims of Identity Theft
- Leonardo Angiulo: Difficult Divorces Can Be Even More Expensive Than You Think
- Leonardo Angiulo: Citizens Recording Official Police Business
- Leonardo Angiulo: Combating the Effects of Heroin Addiction
- Leonardo Angiulo: MA Criminal Justice Attorney Pay at Crisis Level
- Leonardo Angiulo: Supreme Court Rules Raging Bull Lawsuit to Go Another Round in Federal Court
- Leonardo Angiulo: The Impact of Parole on Murder Sentences
- Leonardo Angiulo: How State Law Can Be Used To Promote Clean Energy
- Leonardo Angiulo: Victim Rights in Massachusetts
Follow us on Pinterest Google + Facebook Twitter See It Read It