Appeals Court Rules for Auto Dealer in General Motors Sales Target Lawsuit – Wall Street Journal

Posted: Sunday, January 01, 2017

A federal appeals court ruled in favor of a New York Chevrolet dealer who fought General Motors’ attempt to terminate his franchise over subpar sales, a ruling that could alter how auto makers hold dealerships accountable for sales performance.

The Second U.S. Circuit Court of Appeals in Manhattan said GM’s method for assessing the sales of Beck Chevrolet, in Yonkers, N.Y., violated New York’s franchise laws. GM unfairly relied on a statewide sales average to measure the dealership’s effectiveness without taking into…

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