Pub. 58 2017-2018 Issue 3

29 SPRING 2018 2435 Broad St. Lake Charles, LA 70601 337.433.8664 www.LCAutoAuction.com Family Owned and Operated Since 1991 Mike Pedersen Matt Pedersen DISCOUNTED ROOMS AVAILABLE 500 UNITS WEEKLY UD0162706 MIKE PEDERSEN LA622 AU00000003 MATT PEDERSEN LA1455 owner, can obtain remedies and jurisdiction over the applicable manufacturer or distributor in Texas. No provision is made in the statute’s “Definitions” section, 77 “License Requirements” sec- tion, 78 or in any provision in Chapter 2301 for a manufacturer or distributor to obtain a license to sell, service, or repair new motor vehicles. No provision in the statute or regulations allow for a manufacturer or distributor to have a facility that is licensed to sell, service, or repair motor vehicles. Consequently, no such license can be issued and no such facility can lawfully exist. Each license is issued “subject to each provision of this chapter and board rule in effect on the date the license is issued and each provision of this chapter and board rule that takes effect during the term of the license.” 79 The rules and statute require that new motor vehicle sales and warranty repairs are conducted through and by a licensed and franchised dealer. CONCLUSION The Legislature’s intent from 1971 and forward, maintains intra-brand competition by regu- lating the balance of power be- tween dealers andmanufacturers and distributors. Intra-brand competition prohibits motor vehicle manufacturers and dis- tributors from competing with their franchised dealers. The intra-brand competition for motor vehicle sales and re- pair inures to the benefit of the consumer, the dealer, and to the manufacturer and distributor. The primary advantage to the buyer is price competition. The Legislature elected for price transparency, accountability, competition, and economic ben- efits through intra-brand compe- tition in the motor vehicle sales and repair system in lieu of ver- tical integration which stymies competition in the sale, price, choice, convenience, and repair of a motor vehicle for the consumer. To effect intra-brand competi- tion in this industry requires defining the parties who must be licensed, including defining who is a dealer, a manufacturer and a distributor. Each defined and licensed party plays an im- portant role in the sale and repair of motor vehicles. To act in the capacity of a dealer is not limited to sales. Acting in the capacity of a dealer includes warranty repairs and service as well as the necessary actions to perform the stated activities of a franchised dealer, i.e., buy- ing, selling, exchanging new and used motor vehicles as well as servicing or repairing motor vehicles under a manufacturer’s warranty and franchise. No license can be issued to a manufacturer or distributor under Chapter 2301, Texas Occupations Code, that allows for sales or warranty repairs as intra-brand competition pre- cludes such. Vertical integra- tion in motor vehicle sales and service means that the dealer competes for vehicles as well as for parts. Allowing a supplier to compete with its franchisee gives the supplier the power to give itself preference and erodes the benefits the public receives from intra-brand competition. Dealers are required to make warranty repairs but if a dealer must compete with its sole sup- plier for parts, warranty service, goodwill repairs, including fair and reasonable compensation,