Abstract
There are legal justifications to support the interpretation that electric vehicle (EV) manufacturers are not covered by many states' current laws preventing auto manufacturers from selling cars directly to consumers. So called "dealership franchise laws" on the books in many states require cars to be sold through third party dealerships and specifically prohibit manufacturers from cutting out dealers by selling cars directly to consumers. Beyond the technical legal arguments for the new model, exempting EV manufacturers from the current legally imposed dealership model would accelerate wider adoption of EVs and promote environmental health benefits associated with lowering emissions from transportation. A direct sales model for EVs could also drive more auto sales transactions online, not only saving consumers money on their purchases, but also removing them from high pressure in-person transactions designed by professional salespeople to take advantage of the many financial aspects of buying a car.
Recommended Citation
S. Daniel Rubin, Upgrading to the New Model: Auto Dealership Franchise Laws and the Benefits of Allowing Electric Vehicle Direct Sales, 49 Transp. L.J. 49 (2023).
First Page
49