|
Inquiry (采购产品): New Dealer Legislation in California While I know you are not a member of the Farm Equipment Manufacturers Association (FEMA) I did wanted to contact you regarding new Dealer Legislation now before the California State Senate that if passed in its current form, could impact any manufacturer with dealers in the state of California. FEMA is currently working with our members in California in opposition to AB 585. This bill gives dealers in the state a unfair advantage over the manufacturers who supply them products. I would like to visit with you for a few minutes about this bill and how you can help FEMA either bring fairness the the bill or see it defeated in the next few weeks. Please give me a call at my toll free number 800-419-2304. I have listed some of our problems with the bill below in addition to a link to the bill on the California Senate website. I look forward to hearing from you soon. I will be in California next week and would like to have the chance to meet with you and learn more about your company. Regards, Vernon ___________________ Vernon Schmidt, VP Farm Equipment Mfg Assn vernon@FarmEquip.org 314.878.2304 http://www.leginfo.ca.gov/pub/bill/asm/ab_0551-0600/ab_585_bill_20050622_amended_sen.html " California has a comprehensive body of contract law that governs business-to-business relationships that do and should occur as arm's length business transactions. Proponents have not demonstrated a public policy need or legal justification for extensive amendments to the existing law governing relationships between farm equipment manufacturers and dealers. " SB 585 attempts to codify specific provisions in all contracts between farm equipment Manufacturers and farm equipment dealers. This is contrary to the basic principles of contract law, which are to protect the expectations of both parties and to ensure that the non-breaching party gets the benefit of its expectations under the contract. " Specifically, section 22903(d) would force small manufacturers to honor their side of a contract for six months after a dealer breaches the contract for nonperformance. This is double the notice period in the existing law. No matter the reason a dealer may not be able to perform on a contract (e.g., acts of God), it should not be the manufacturer's responsibility to carry the dealer. That's the purpose of business interruption insurance. For small manufacturers, anyway, the termination notice should be the existing law (3 months) and any exemption threshold for small manufacturers should be realistic. Of course, under existing contract law, parties are free to extend this notice period in their contracts, if both parties agree. " Second, AB 585 adds an entirely new section (22903.3) that constrains the parties' contractual relationship by prescribing procedures and remedies for dealer warranty work. " Among other provisions (22903.3(c)), the bill mandates that manufacturers pay to dealers a fifteen percent premium for each part used on warranty repairs - in addition to paying for freight charges. There is no legal or public policy reason to invalidate the negotiated provisions in existing or future contracts that govern warranty work. " The sponsors claim that these changes are motivated by the consolidation of very large anufacturers - thereby creating an uneven playing field with dealers. If this is so, then the smaller manufacturers should be carved out from these new, onerous changes. The fact that the very largest manufacturers - John Deere, Caterpillar, International Harvester - do not oppose this bill suggests that it is in the interest of the big players to support a law that will squeeze out the smaller players, thereby increasing market share at the expense of the little guys. Fewer competitive manufacturers means fewer choices and higher prices for farmers and ranchers. " The basic purpose of contract law is to enable people to get what they bargained for. The law may sometimes have to compromise a contract (e.g., to protect consumers), but that does not mean that the law should assist a party in thwarting this purpose. That is what the dealers are attempting to do in AB 585. **** Hidden Message ***** Vernon Schmidt 1000 Executive Parkway Suite 100 St. Louis, MO 63141-6369 USA Company: Farm Equip Mfg Assn Title: VP Phone: 800-419-2304 E-mail: vernon@farmequip.org **** Hidden Message ***** vernon@farmequip.org
|
