BSM has been retained to assist the South Carolina Automobile Dealers Association in its defense of South Carolina’s restriction on manufacturers selling direct to consumers. BSM shareholders, Shawn Mercer and Jason Allen, are handling the representation. In this case, a Tesla owner residing in South Carolina has challenged the South Carolina law pursuant to the U.S. Constitution’s Equal Protection, Due Process and Commerce Clause provisions. The Dealer Association will be an intervenor in the litigation working alongside the South Carolina Attorney General’s office.
The South Carolina law prohibits a manufacturer from selling or servicing its vehicles to retail customers. Like many states, South Carolina’s legislature has determined that it is in the best interest of the buying public for new vehicles to be sold and serviced by independent franchised dealers.
In a similar legal challenge, BSM has been retained by an Infiniti dealer to assist in defending against the constitutionality of Wisconsin’s franchise law governing reimbursement for warranty work. In this case, the Wisconsin dealer pursued its right to retail reimbursement for labor performed on warranty repairs for its Infinity customers. In response, Infiniti has argued that the warranty reimbursement provisions violate the U.S. Constitution’s contracts clause. BSM shareholders, Richard Sox and Jason Allen, are handling the representation.
BSM has successfully defended laws in other states which place limitations on Tesla, as well as requirements related to warranty reimbursement, and is confident that the South Carolina and Wisconsin law will also be upheld by the courts.