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ARTICLE · 15 MARCH 2012

Dealer Agreement Renewals: Ask Not For Whom The Bell Tolls...

The scenario is an ominous one, and all too frequent. You are an Ontario car dealer under a dealer agreement with the manufacturer that goes back for a number of years.

CanadaLitigation, Mediation & Arbitration

Previously published in Canadian AutoWorld magazine.

The scenario is an ominous one, and all too frequent. You are an Ontario car dealer under a dealer agreement with the manufacturer that goes back for a number of years. Over that time frame, relations have been good although in the last few years, it has hit a few bumps.

Renewal time is approaching. For you, it is business as usual. But sales are slow, and you have an uneasy feeling because you heard of a few experienced operators sniffing around for an opportunity to open a competing location uncomfortably close to your territory.

The manufacturer notifies you, out of the blue, that it does not plan to renew your dealer agreement. You quickly realize that the rumors are true: another dealer has pulled enough strings to put himself into a position to replace you in your territory, presumably in that empty building down the road from which he used to carry on business with a competing brand.

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