New Jersey auto dealer association complaint against Tesla dismissed
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In September 2019, the New Jersey Coalition of Automotive Retailers (NJCAR) filed a complaint against both Tesla and the New Jersey Motor Vehicle Commission, alleging that Tesla was unlawfully operating more than the 4 manufacturer-owned sales locations authorized. It further alleged that the NJ Motor Vehicle Commission (NJMVC) failed to enforce dealership franchising laws.
In New Jersey, all new vehicles must be sold through non-manufacturer owned dealerships (franchises). The state created an exception in 2015 for manufacturers of exclusively zero emission vehicles to have no more than four places of business in the State of NJ. NJCAR’s complaint centered around Tesla’s various “showrooms” located in retail malls, which offer consumers the ability to explore Tesla vehicles, but do not provide direct sales or servicing.
The court ruled on April 20, 2021 that NJCAR has no standing to pursue these claims. It further denied NJCAR’s request for relief, stating that NJCAR, as a “statewide trade association” does not represent the public or the public’s interest. The Superior Court further ruled that NJCAR did not provide any evidence whatsoever that NJMVC was not enforcing franchise laws; rather, that their prior actions against Tesla prove that they are enforced rigorously.
NJCAR’s entire complaint was dismissed on April 20, 2021. Here is link to the decision.
First: the appointed state judge (no voted-in judges in NJ) turned down NJCAR. NJCAR appealed to the appeals court. The appeals court turned them down. Main reasoning: First, NJCAR is not the public; they're an association of auto dealerships. The best that this crowd might do is to show up as a "friend of the court", but representing the consumers in the state, well, that's not them. And there's precedent for that. Second: NJCAR is suing the NJMVC (and Tesla) claiming that NJMVC isn't regulating Tesla to NJCAR's liking. The appeals court points out that NJMVC actually _has_ been regulating Tesla: There's been a few actions taken, some fines paid. And some of those actions and fines were, at least, _started_ by NJCAR bringing the issues to the NJMVC's attention. So, if anything, Tesla has been regulated just fine by the NJMVC, so what's the beef? End result: NJCAR's been dropped-kicked out of there. More sour grapes by standard dealerships who are afraid of the competition of high-efficiency, low maintenance electric cars, that's all.
Anyone know who the judge was so we ensure we vote them back in if it’s not an appointment?
Don’t mess with Tesla!