Pub. 56 2015-2016 Issue 3

40 23 Tex. Occ. Code Ann. § 2301.359 allows a manufacturer or distributor 60 days after a notice and application to purchase is received to accept or reject a trans- feree. Consideration is given to the transferee’s financial and operational performance if a franchised dealer; the moral character of the prospective transferee; as well as the manufacturer’s or distributor’s available written, reasonable, and uniformly applied criteria regarding business experience and financial qualifications. 24 Chrysler Group LLC, Dodge Sales and Service Agreement ¶ 1, Form SSA D11. 25 Id . ¶ 4. 26 Tex. Occ. Code Ann. § 2301.703(c) (Vernon Supp. 2015). 27 Id . § 2301.704. 28 Id . § 2301.709. 29 Tex. Transp. Code Ann. § 1001.021 (Vernon 2011). Three members must be persons who hold a dealer’s license issued under Chapter 2301, Occupations Code, of whom two must be franchised dealers of different classes and one must be an independent dealer; one member must be a representative of a manu- facturer or distributor that holds a license issued under Chapter 2301, Occupations Code; one member must be a tax assessor-collector; one member must be a representative of a law enforcement agency of a county or municipality; and one member must be a representative of the motor carrier industry. The remaining members must be public members. 30 Id . § 2301.652. 31 Id . 32 Id .. § 2301.6521 and § 2301.6522. 33 Id . § 2301.455. 34 Id . FTC Workshop, Segment 1. 35 Id . 36 Office of the Special Inspector General for the Troubled Asset Relief Program, “Dealership Termination Decisions Were Not Based on GM’s and Chrysler’s Cost Savings Estimates”, SIGTARP-10-008 (July 29, 2010). 37 Id . at 30. 38 Id . at 31. 39 Id . 40 Id . § 2301.353. 41 Ryan Beene, www.autonews.com/article/20160229/OEM11/302299984/recall-of-thecentury (February 29, 2016) 42 BMW of North America, Inc. Dealer Agreement, ¶ 8(f) Form 78/12B: “All BMW Vehicles sold to Dealer shall be at Deal- er’s risk and peril from the time of delivery to Dealer, Dealer’s agent, or a common carrier at BMWNA’s established place of deliv- ery and during all subsequent transportation. It shall be the obligation of Dealer to insure against such risks for its benefit and at its expense.” BMW NA’s Vers. 2010.01 CASP ¶ 8(f) carries forward this same passing of risk. The Ford Sales & Service Agreement FD 925A ¶ 11.(b) has a similar provision: “Title to each COMPANY PRODUCT purchased by the Dealer shall (un- less otherwise provided in the applicable VEHICLE or PARTS AND ACCESSORIES TERMS OF SALE BULLETIN) pass to the Dealer, or to such financing institution or other party as may have been designated to the Company by the Dealer, upon delivery thereof to the carrier or to the Dealer, whichever occurs first, but the Company shall retain a security interest in and right to repossess any product until paid therefor.” 43 Id . §2301.402. 44 Id . FTC Workshop, Segment 2. 45 Id . 46 Id . FTC Workshop, Segment 3. 47 Id . 48 Commissioner Maureen K. Ohlhausen, When Regulation Protects Privilege Instead of People: Government Restraints of Trade–A Competition Enforcer’s Perspective, The Antitrust Enforcement Symposium 2015–The Journal of Antitrust Enforcement, Oxford, England (June 27, 2015). 49 Id . 50 Phoenix Center Policy Paper Series, “The Price Effects of intra-Brand Competition in the Automobile Industry: An Econometric Analysis” No. 48 (March 2015). 51 Id . § 2301.476. 52 U.S. News & World Report, “Obama’s War on Auto Dealers, The Federal Trade Commission is using faulty data to attack auto dealers and justify new regula- tions,” (Jan. 19, 2016--3:06 p.m.). 53 George S. Ford, contributor, (January 19, 2016-6:00 a.m.) 54 January 19, 2016. 55 Peter Ferrara, Town Hall “FTC Regulation of Phantom Problems That Don’t Exist is Over-regulation,” (January 19, 2016). 56 Id . FTC Workshop, Segment 3, Maryann Keller, Managing Partner, Maryann Keller & Associates. 57 Id . 58 Id . 59 Id . FTC Workshop, Segment 3, Mr. Todd Maron, General Counsel, Tesla Motors. 60 Zachary Shahan, “Electric Car Evolution” (April 26, 2015), originally published in Sustainnovate; http://cleantechnica.com/2015/04/26/electric-car-history/ 61 Id . 62 Id . 63 Id . 64 Id . 65 Id . 66 Id . FTC Workshop, Segment 3, Mr. Todd Maron . 67 “The History of the Electric Car” http://energy.gov/articles/history-electric-car (September 15, 2014–10:48 a.m.). 68 Id . Shahan. 69 Mike Ramsey and Colum Murphy, Wall Street Journal, “Tesla Won’t Turn Pro table Until 2020” (January 13, 2015 6:02 p.m. ET). e article reports that Chief Executive Elon Musk told an auto industry gathering in Detroit that his luxury electric-car company will not be pro table on a basis that  DEALER FRANCHISE — CONTINUED FROM PAGE 39