• Research Report

    Auto Dealer Protectionism: State Limitations on Dealer Competition Should Be Eliminated

    posted September 6, 2005 by Daren Bakst
    North Carolina law limits the establishment and relocation of new-vehicle dealerships in “relevant market areas” where the same make of car is sold. This law was enacted due to the belief that dealers were in an unequal bargaining position with manufacturers. This rationale is now obsolete. Research also indicates that such laws hurt consumers. No justification exists to continue granting special privileges to dealers, especially when those privileges come at the expense of the public.

Relevant Market Area by Author