The California-based company accuses the MVC of overstepping its authority by attempting to enforce the state’s franchise laws. Attorneys further argue that the regulations do not apply to an automaker that is not a franchisor, because it has no franchisees.
“The MVC is a creature of statute, and its limited powers and duties are specifically set forth in its enabling laws,” the brief notes, according to excerpts published by NJ.com. “These powers and duties do not include enforcement of the FPA, which by its terms limits its enforcement to civil lawsuits filed by franchisees.”
Similar arguments are being made in other legal battles on a state-by-state basis, as dealer lobbyists attempt to prevent Tesla from selling directly to customers. In some cases, the parties have reached a compromise that allows the company to open a limited number of stores with other restrictions.
A bill explicitly authorizing Tesla’s sales model is currently on its way through the New Jersey Senate, however the company appears to be settling in for a protracted legal dispute that could allow it to continue direct sales without any of the restrictions demanded by dealer groups.
Tesla’s unique sales approach has generally received public support and backing from politicians on both sides of the aisle, despite strong opposition from established dealers.
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