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Auto Dealerships, State Legislatures, the FTC, and Tesla

Discussion in 'Tesla Discussions' started by JackB125, Jul 5, 2017.

More threads by JackB125
  1. JackB125

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    On January 19, 2016, the FTC held a one-day public workshop on Auto Distribution: Current Issues & Future Trends. It was attended by Todd Maron, general counsel and secretary of Tesla Motors, many very well-respected economists, FTC officials, antitrust legal scholars, automobile dealership representatives and their lobbyists. Attendee bios, workshop transcripts, and videos are all available at https://www.ftc.gov/news-events/eve...uto-distribution-current-issues-future-trends.

    I learned that day that the coordinated activities of the franchise dealerships are protected by a legal principle called the State Action Doctrine. The State Action Doctrine allows state legislatures to protect the actions of business entities from antitrust legislation that under any other circumstances would be patently illegal. In fact, the State Action Doctrine is the only way to shield businesses from US antitrust laws.

    For anyone interested in a more detailed explanation of the legal principle, its misuses, and adverse economic effects – especially in regards to Tesla – I recommend the following three workshop presentations.

    1. The Keynote Presentation by Professor Dennis Carlton, University of Chicago
    · Presentation Slides: Carlton (keynote) (110.46 KB)
    · Auto Distribution: Current Issues & Future Trends - Part 3 (Professor Carton is introduced at the beginning of this video.)

    2. Tesla Motors, FTC WORKSHOP – Auto Distribution by Todd Maron, general counsel and secretary of Tesla Motors, Inc.
    · Presentation Slides: Maron (panel 3) (1.5 MB)
    · Auto Distribution: Current Issues & Future Trends - Part 3 (Todd Maron’s presentation begins at 40:35 in this video.)

    3. The Anticompetitive Effects of Direct Distribution Prohibitions in the Automobile Industry by Daniel A. Crane, Professor of Law, University of Michigan. Noted author or editor of six books on antitrust law.
    · Presentation Slides: Crane (panel 3) (2.24 MB)
    · Auto Distribution: Current Issues & Future Trends - Part 3 (Professor Crane’s presentation begins at 1:34:50 in this video.)

    The public was invited to submit comment letters for this workshop. My submitted letter details a brief history of my investor relationship with Tesla, a more in-depth history of the automotive franchise laws and their associated economic effects. My letter also includes some research detailing the unfortunate control of powerful business interests over state legislatures, and lastly, some of my personal thoughts and observations on the difficulties this corrosive legislative environment presents to Tesla.
     
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  2. SoFlaModel3

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    Thanks for sharing this!!!
     
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  3. JackB125

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    I'm very happy that you like it. The subject material has a rich history and some very unfortunate politics that tend to favor the status quo no matter what the electorate desires or expert economic opinion dictates. I hope that other club members find it useful as well. Best regards.
     
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  4. TrevP

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    You guys will get a good laugh out of this...

    Some of the documentation from the Tesla vs Michigan dealers association lawsuit has started to come out. Check out this bit from document 96 exhibit 1:

    IMG_4505.PNG
     
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  5. SoFlaModel3

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    Classic!
     
  6. KennethK

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    The public is already aware of how it feels about dealerships. I want to see the correspondence between senators and dealers and lobbyists. That is what counts in this case anyways.
     
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  7. KennethK

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    @TrevP, do you have access to the other 5 pages of the document? When I search the web for the case number, the sites that contain the documents required an account and money.
     
  8. KennethK

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