Maryland limits automakers' sales-effectiveness mandate
Automotive practice group chair Aaron Jacoby recently spoke with Automotive News about Maryland House Bill 1120, which Governor Larry Hogan signed into law on May 5. This bill fortifies dealers against sales standards that are unfairly applied, setting rules on how automakers can measure retailer performance in the state.
Aaron, who gave technical and legal advice regarding the drafting of the legislation, said, “Dealers are expected to all be above average -- which is a ridiculous standard, because it's not possible mathematically.” He went on to say, “It turns on its head -- both in New York and in Maryland -- the old metric, and the manufacturers will have to consider new methods to deal with the new paradigm.”
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