Home / Business / The Court of Appeals of Missouri rules in favor of Tesla, against the Association of Merchants

The Court of Appeals of Missouri rules in favor of Tesla, against the Association of Merchants



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Posted on December 6, 2017 |
by Steve Hanley

December 6, 2017 by Steve Hanley



This story about Tesla's sales in Missouri was first published by Gas2.

An appellate court in Missouri has abrogated a lawsuit filed by the Missouri Auto Dealers Association in 2015. MADA wanted the court to order the Missouri Department of Revenue not to allow Tesla to sell its cars directly to consumers in the State Show Me.

<img class = "aligncenter size-medium wp-image-30009" src = "https://gas2.org/wp-content/uploads/2013/10/tesla-store-texas-500×333.jpg" alt = "tesla store texas [19659009] The case was heard in 2016 by Cole County Circuit Court Judge Daniel Green, who ruled that Tesla is not a franchise as defined by Missouri law. Revenue does not renew Tesla's licenses to sell cars in Missouri.

Tesla immediately closed its stores in University City, which is west of St. Louis, and in Kansas City, then reopened them after the court gave them permission to continue operating pending an appeal On December 5, the Missouri Court of Appeals for the Western District ruled that MADA had no legal standing to file its claim and dismissed its claim.

MADA argued before the court of appeal that if his claim was dismissed, no system of c and the balances would be available to challenge the decisions of the Revenue Department. But the court did not have any of that, reports the St. Louis Post-Dispatch . In a poignant rebuke, he said MADA's complaint was more like that of a competitor seeking to avoid competition than one presented by someone seeking to defend the public interest.

Tesla, predictably, was jubilant. The company continues to fight against dealer associations in several states and this was a rare victory for the company. "Today's decision is a victory for Missouri consumers who want the option of knowing and buying their Tesla in their home state," Tesla said in a statement. "We have been serving clients in Missouri for almost five years and we have contributed to the state's economy and employment for Missouri residents, something that will continue now."

Well, maybe. MADA is now licking his wounds and contemplating his next legal maneuver. Clearly, you could ask the Missouri Supreme Court to review the decision of the appeals court. "We believe that the decision of the Court of Appeals does not hold the government accountable, but that it enables a system where the Department of Revenue can arbitrarily issue a license to any person for any reason, without an appropriate and necessary mechanism for Missouri taxpayers to be able to challenge those decisions, "MADA executive director Doug Smith said in a statement.

That does not seem that the distributors are willing to accept defeat in silence. Tesla may have won a round, but the battle to sell it directly to consumers is far from over. The debate has greater consequences for the automotive market. Many new electric car companies are about to start selling cars in the United States. Most would like to avoid setting up expensive dealer networks if they can. What happens to Tesla will have ramifications for the entire US auto industry. UU In the next years. That is perhaps what scares car dealers the most.



Tags: FRANCHISE DEALER LAWS, Missouri, MISSOURI ASSOCIATION OF AUTOMATIC DISTRIBUTORS, MISSOURI DEPARTMENT OF INCOME, Tesla, Tesla automotive battles, Tesla car dealerships, Tesla direct sales, Tesla Missouri


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Steve Hanley writes about the interface between technology and sustainability from his home in Rhode Island. You can follow it on Google + and Twitter .

"There may be times when we have no power to avoid injustice, but there should never be a time when we can not protest." Elie Wiesel




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