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Can cons explain to me how this represents free enterprise?

https://autos.yahoo.com/blogs/motoramic/georgia-de...

For those who don't want to read it, the Georgia auto dealers are trying to force Vespa to either open dealerships or not be allowed to sell in the state. A total of 26 states, including Rick Perry's Texas, refuse to allow their sales.

Update:

I am surprised that so many of you wonder why I asked this of cons. You raise holy hell if a lemonade stand gets shut down somewhere, but it's perfectly fine with you to try to force a car manufacturer to adopt inefficient and expensive business practices in order to slow their sales down.

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    The excuse I've read, (by states banning Tesla sales) is that Tesla is violating the "middleman" rule of car sales, that is, by selling directly to the consumer, Tesla is not allowing some greasy/slimy car sales eel to extort their pound of flesh from every potential car buying customer regardless of whether it's a new or used vehicle.

    There is a lobby group that is very powerful and it's, ( I forget the exact name) a cars sales special interest group that wants to force Tesla to use their outdated, corrosive sales model to extract profits for car sales people, (since both genders or at least every potential gender is represented, it's inaccurate to call them "salesmen" any longer).

    By selling directly to the customer, Tesla is preventing car sharks from receiving/extracting their pound of consumer flesh.

    In the final analysis, it's quite clear that selling directly to the consumer and cutting out the heavy handed car sales lobby, (middle-"person") Tesla has greatly angered the car sales "gods".

    So the states in question are using car industry sales lobby inspired, (obscure) rules state by state to try and prohibit Tesla sales until Tesla conforms to their "preferred" sales by deliberate consumer exploitation extraction "business model".

    Bill cut to the chase explained it in fewer words than I did, it's true, states are using a "certificate" hurdle to prevent Tesla sales, it appears that the state certificate isn't cheap, so it's not just the car dealers that want their pound of flesh, it's the state that wants their pound of flesh in the form of car dealer certificate fees.

    I imagine their excuse for demanding Tesla file for the car dealer certificate state by state is to "protect consumers from fly by night car dealers selling a lemon, then moving the entire business away so the consumer has no recourse to sue for fraudulent car sales".

    But to Tesla's defense, I'm certain than anyone selling a 70K+ vehicle, especially an electric vehicle isn't a flight risk or a shady car-dealer looking to rip people off like some dealers that do pony up the car dealer certificate fees and still rip people off.

    Source(s): Juxtaposition
    • Their blocking tactics are a perfect example of conservatism. To "conserve" the old ways no matter how un-American they are. Status Quo atism.

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  • IceT
    Lv 7
    6 years ago

    They violated the law that is the reason for the shutdown.

    Here is a quote from your link.

    The dealers say Tesla can only sell 150 cars a year from the shop under state rules, and therefore should lose its dealer license entirely.

    “It’s just very simple -- we want them to comply with the law the way others are,” Bill Morie, president of the Georgia dealers association, told Automotive News.

    The article says nothing about why they cannot sell more than 150 cars a year but it most likely has to do with the fact that the store is a factory direct store.

    I think forcing them to shutdown is a little much for what they did.

    By the way no where in the article did I see that one of the 26 states was Texas.

    @brian B....Good question as I previously stated the article does not explain that.

  • 6 years ago

    I'm not sure why you are calling out conservatives on this one as the article makes it fairly clear that it is special interests pushing for laws to eliminate competition--which is WRONG.

    The reverse argument would be that the dealers are trying to make sure that Tesla has to abide by the same laws they are required to follow--not selling direct to the public--which makes sense in keeping the playing field level (so to speak) but I would not support that concept either.

    It is the majority attempting to force the minority out of the market because the minority found a better way to do things. That's not the way to do business.

    The Warlock

    ** Except for the attack on conservatives, a VERY valid and informative question! Thanks for sharing the thought!

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  • Anonymous
    6 years ago

    You could always read your own link to find out why.

    Tesla's crime? Selling 173 cars directly from a factory-owned store located 25 miles away from Atlanta, the only Tesla retail location in Georgia. The dealers say Tesla can only sell 150 cars a year from the shop under state rules, and therefore should lose its dealer license entirely.

    “It’s just very simple -- we want them to comply with the law the way others are,” Bill Morie, president of the Georgia dealers association, told Automotive News.

    • mommanuke
      Lv 7
      6 years agoReport

      So you are telling me Ford and Chevy dealers can only sell 150 cars a year? Does that even make sense to you?

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  • 6 years ago

    yes... it's quite simple actually...

    Tesla and Vespa are manufacturers that assign franchise rights to individual business people called "dealers"... these dealers are charged franchise fees in return for the rights to a particular market..

    By selling directly to the public in those markets, the manufacturers are violating those franchise agreements and basically stealing customers from their dealers.

    ...this is not "free market competition" because the dealers are still being charged franchise fees and being held to their end of the franchise agreements...in short, the manufacurer is restricting the ability of a private business to sell product..

    ...this is not like buying a consumer product that is available at dozens of stores in the local mall... Auto franchises are strictly controlled and are supposed to come with certain rights...

    ...the dealers' contention is that the manufacturers are violating these contracted rights..

    • mommanuke
      Lv 7
      6 years agoReport

      I'd be interested in seeing your evidence that Tesla is assigning franchise rights to dealers. I know all the others do, but that is why they are trying to stop Tesla from violating their particular method of business.

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  • bill
    Lv 6
    6 years ago

    what you forgot to mention is that it is against the law for a corporation to sell automobiles without a certified auto dealership. Georgia is simply asking Tesla to abide by the law and open up an actual dealership (maybe even a service center or two) instead of taking the Amazon.com approach to vehicle sells.

  • Anonymous
    6 years ago

    This is much like real estate. A group of a$$holes think they should be between the consumer and seller as if they have a right to make money simply because a transaction exists. Car dealers and real estate agents are scum. I hope Tesla fights and wins

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  • It doesn't. However, without government taking power YOU PERSONALLY demand it take, that which you are complaining about would be impossible.

    "Tesla can only sell 150 cars a year from the shop under state rules." THAT KIND OF RULE is possible ONLY because literally all DEMOCRATS expressly demand THAT SORT OF RULE be the core PURPOSE of government.

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  • 6 years ago

    Just to be clear

    Tesla makes electic cars

    Vespa makes motor scooters

    see the difference there

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  • 6 years ago

    Its affordable and infringes on their sales of other vehicles. Its happening. The same technique they are trying to use on the Postal service union

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