The Top 5 Legal Threats facing franchise automotive Dealers

The AADA was delighted to host a presentation by partner at HWL Ebsworth Lawyers Evan Stents, on the top 5 legal threats facing franchise automotive Dealers today.

As most Dealer Principals would agree, the threat of termination, especially when it’s sudden, is a primary concern. Luckily Mr Stents was on hand to share his tips on how to handle this situation if it were to arise and what Dealers can do to help ensure their Dealer Agreement is protected.

Under the Franchising Code of Conduct manufacturers can terminate a Dealer Agreement in one of three ways; when there has been a breach of the Agreement by the Dealer, when there has been no breach of the Agreement or under special circumstances.

Each of these circumstances is complex, but Mr Stents’ overriding message to the audience was first not to panic if the manufacturer decides to terminate the dealership Agreement. By acting quickly and accurately, legal counsel can take steps to try and resolve the situation, which is why it’s so important for Dealers to contact their lawyer as soon as possible.

To read more about the important steps to take when faced with termination, and how to protect your dealership against this threat, turn to page 38-39.


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