Sunday, September 10, 2006
EU judgment gives dealers BER boost
Dealers across Europe have been given a legal shot in the arm over their distribution agreements with manufacturers who use the current block exemption to terminate outlets at short notice.
This follows a judgement this week by the European Court of Justice in Luxembourg relating to a case in Denmark between importer Skandinavisk Motor Company and a VW Group dealer.
The judgement sees the burden of proof now placed on manufacturers when challenged by dealers issued with one year termination notices.
Manufacturers must produce “convincing” evidence to justify a decision to give only 12 months notice.
DATED: 10.09.06
FEED: MT
This follows a judgement this week by the European Court of Justice in Luxembourg relating to a case in Denmark between importer Skandinavisk Motor Company and a VW Group dealer.
The judgement sees the burden of proof now placed on manufacturers when challenged by dealers issued with one year termination notices.
Manufacturers must produce “convincing” evidence to justify a decision to give only 12 months notice.
DATED: 10.09.06
FEED: MT
