A state agency cannot prevent the designation of a new franchisee because of the possibility that competition with an existing dealer would cause one or both to close, the Commonwealth Court has ruled.
A three-judge panel reversed the State Board of Vehicle Manufacturers, Dealers and Salespersons’ decision not to allow Arctic Cat Sales Inc. to appoint a new dealer, Kennedy RV & Powersports Inc., to sell its products. The board had decided in favor of an existing Arctic Cat dealer, Neiman’s Garage & Equipment Inc., located nine miles from Kennedy.
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