California new vehicle dealers association says direct sales plan violates unfair competition laws, California franchise rules.
A federal court has denied motions to dismiss the central claims in the California New Car Dealers Association’s (CNCDA) lawsuit challenging Volkswagen’s use of Scout Motors to sell vehicles directly to consumers, bypassing its franchised dealer network.
The ruling, issued March 30 by Chief Judge Cynthia Bashant of the U.S. District Court for the Southern District of California, allows CNCDA’s unfair competition claims against both Volkswagen Group of America and Scout Motors to move forward. The case tests whether California’s franchise law prohibits vehicle
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