FTC Staff Comment to the Hon. Gwen Margolis Concerning Florida Statutes that Regulate Auto Manufacturer Relationships With Dealers

'.:~:lLr) Si A7E~ O~ A~~[l<.I':A
FF.:>ER.:\L TRA:JE CO~1MISSIO~
t:\oo"'!' 1CW
1 j'~, P.,,,,...,, •• ~I , ... w
.... ,•• ,.. .. OtK"O" ).C.~.
I"V'(! ,}A. ; ... £JE 	~E.rch 29, 	1988
The 	honorable 	G~en Margolis
Chc.i::-mer,
Commit:.t.C:G 	on 	Economic, 	COlTlJT.l1oit.y 	an~ 	COfiEl.:r.1er 	J..ffc.irs
~he 	florida 	Senat.e
430 	Sen3te 	Office 	Building
Talleh6ssee, 	Florida 	32399-1100
Dear 	S8nator 	~argoli6:
?he 	staff 	of 	the 	Federal 	Trade 	CO~~i8sion is 	plea~ed to
respond 	to 	~he 	request 	of 	your 	st~ff 	for 	our 	views 	on 	Florida'S
5~e~uto~ provisions 	that 	regula~e mo~or vehicle 	m~nu!acturers and
mos~ 	aspects 	cf 	their 	relationships 	with 	their 	franch~sed
dealers. 1 	Our 	com.llents 	focus 	on 	t".;o 	specific 	provisic;lS 	t.hat.
appecr 	to 	restrict 	competition. 	We 	believe 	that 	rep~~l 	of 	these
provisions 	would 	likely 	result 	in 	lower 	Gutomo~ile prices 	for
consumers.
The 	Federal 	Trade 	Commissior. 	is 	charged 	by 	the 	Unite~ Stctes
Congress 	with 	maintaining 	cOffi?et.ition 	end 	protecting 	consume~s
from 	rest~ain~s of 	t~ade.2 	In 	a~cord2nce ~i~h this 	~ole, 	the
s~aff of 	the 	Com.~ission submits 	corr~er.~s upon 	~equ8st ~o 	federal,
st.2~e and 	local 	governmental 	bodies 	to 	help 	them 	assess 	the
~orr.?eti~ive and 	consume~ ~elf2re ~rr.?li~atior.s 0: 	pending 	?clicy
:.ssues.
,...
2
3
7hese 	co@~ents re~_esent. the 	\"ie~s of 	the 	Atlanta 	~e~~c~~:
Office 	and 	the 	Eu=eaus 	of 	Compe~ition, Consumer 	P~ot.Ection,
and 	Economics 	0: 	the 	Fede~al ~rade Commission 	and 	do 	no~
necessarily 	re0resent. 	the 	views 	of 	the 	Federa: 	Trade
Com.rr.issic:--.- or 	ar:-v· 	i~tividua': 	Commissioner. 	The 	Commission,
ho¥eve=, 	has 	vo~~d ~O a~t.ho~i~e the 	submission 	0= 	these 	comments.
~ 	lS 	U.S.C. 	S 	~l 	et 	seq.
See 	Let~e= 	from 	'Ii'illiam 	P. 	Golden 	to 	The 	Hono~able Lynr:.
hdelma~, 	Chairman, 	Judiciary 	& CO~5umer 	A:£ai~5
Comrr.ittee, 	Wisconsin 	Sta~€ Senate 	(June 	19, 	1987),
co~~er:.~in~ on 	a 	bill 	that 	~o~ld have 	reDealed 	~o~~icns
O ~ 	~ n' ~ - 	<: ~ - - e . ~ 	s - .. -., ... e c: 	: ~ r 	.', 10 \" 	e)'": s - .; n a 	-;, ., - 0"""" b ~ 1 e	_ 	........ "", _~c."" 	l;.. 	.... '-l"...'-~ _ 	__ .... 	c...J.. 	"" 	,,_ 	1,.,.. ..... 	~ 	~~ .... .... 'u 	__
de21e~6 	to 	challenge 	new 	c2alerships; 	Cow~en~s c: 	the
(cont.inU6c. ... )
" - 	'='- . ..:.. . 	?='-:,: 	-- ':""-'

Section 	5 	cf 	~he 	Fede~Gl ~~~de Commission 	Ac~ 	?~ohibi~s
un:c:~ me~hods of 	compe~ition/ er.j 	unfai~ or 	deceptive 	oct8 	cr
prac~ice6. 	By 	er.:orcin; 	this 	EtG:~te, 	the 	Com~isfion £t~ff 	hbS
gel.:,ec 	t~8ste.r.t.iz:.l Exper':ise 	ir. 	ar.cl),zing 	the 	impact 	o! 	\'2.r':"ous
rec:''::-t.in-..:.s 	uf, 	corr.pe:.it.':'on 	c.~ld the 	cost.s 	end 	bene:its 	to 	ccnSl]...;Tle.::-s
of 	such 	reEt.~2.int£. 	I~ 	recen~ )'~er£, 	the 	Comffiission 	st~~f 	h~g
ad~~esEed issues 	E~eci!ic2.11v concernina 	retail 	a~tomobile	. 	. 	~
det:.~.. e~chips. 	::n 	Jt.nua::y 	15'[6, 	fo:- 	example, 	the 	F';'C's 	B'-C:::'eau 	of
Eccno~ic~ F~bl':"Ehed a 	5~udy 	o~ 	t.he 	"Effoct. 	cf 	S~ete 	Ent~·
RCq'J.le.tion 	on 	Retail 	J,ut::;;n;bile 	~arke:.£." ("Steff 	neport") 4
C8l1'u'TIiesion 	Etcf£ 	h2.,6 	~15o 	seined 	experience 	relating 	to 	the
automogilB 	industry 	through 	mony 	inv,=,st.igBtions 	and 	lit.igbted
ce8ee.
"SepeelinQ-the 	Rpl"'ycot 	!·;e.:-ke:. 	l. .... e p 	Prl')v;£iQn= 	bill 	Benefit
Cpo::ume=e
Cu=rent 	Flo.::-ida 	l~w 	p~ovide5 existing 	retail 	au~omobile
dee.l c:-s 	"'; i th 	e.dmini. £ tra t i ve 	avenues 	for 	che 11eoging 	a 	dec.i.s ioo 	by
u 	de~lor'e 	eupplier 	to 	~~:~blieh e 	comp~ting 	dea18r~hir 	in 	thp.
same 	":-elevant 	r:1a:.-ket 	a::.-ca" 	("RY.J.... ). 	-.;'e 	believe 	th2.t 	this 	statute
reE~ricts competition 	ur.ns~a££8rily.
Flo::.-ida 	Statute 	S 	320.642 	s~ates tha~ the 	Division 	of 	Motor
Vehi~les
shall 	deny 	an 	application 	for 	a 	rnoto::.- 	vehicle 	deale:-
license 	in 	e~y commu~~ty or 	~e::.-::.-itory whe~e the
licensee's 	presently 	licensed 	franchised 	motor 	vehicle
3( ... cont'::"nuec)
S~e.ff of 	the 	FTC 	on 	The 	Reg~lation of 	Mc~or Vehicle
~ecle::.- Franchises, 	Senate 	Ei~l 	103, 	be:cre 	the 	Se~a~e
Comm': '.:tee 	c~, E.i.sh'".. a~'s, 	'I':::'anspo;:"tat.io~ 	and 	Loce.l
Gcve::.-r...'Tlent, 	Ge:le::,-o.l 	;".ssambly 	of 	the 	St2.te 	of 	Ohio 	(April
21, 	:987).
we 	are 	enclos~ng a 	copy 	of 	this 	Stai£ 	Renort 	(ALtaC~'Tl€nL 1)
:0:::: 	yo~r 	ir.£o=rna t.ion.
5 	G€~erel 	Moto::.-s 	Co=?, 	~C2 	F~C 	17~2 	(1983); 	Fo::::d ¥.oto::.-
COffi?any, 	102 	fTC 	1/32 	(1923); 	~~erican nonda 	~oto::::
Cc.,Inc. / 	99 	FTC 	305 	(1982); 	Volks~agen of 	hmerica/
Inc.! 	52 	Fed. 	Reg. 	12540 	p.pril 	17,1987) 	(P::::opcsed
Consent) f 	~~e~Ged 	S2 	Fed. 	Reg. 	17960 	(May 	13/ 	1987),
co::::rected 	~2 	Fed. 	Reg. 	20096 	(May 	29, 	1957)"
2

deeler 	0= 	de~:~rs hav~ comp:iec 	~:Lh liceneee's
bs~eemen:s and 	~re 	providing 	adequa:e 	re?resen:et':'8n 	~n
t. he 	c 0 m..nu r. i. t. Y 	0 r 	t. e ~ r :. c:::. :-y 	!: 0 r 	9 u c h 	1 i C t n fee . 	~ h ~
bcrden 	of 	p=oo~ 	in 	Bho~~ng ined~gue~e representa:ion
Bhall 	be 	on 	the 	licen,ee.
The 	Di\'':''slon 	of 	~o:or Vehiclc-s 	has 	Dromuloa;:.ed 	reoula:.ions	~ 	~ 	~
req~irins that 	ell 	prospective 	aea:e~5 noti!y 	the 	Director 	of
tnt':'r 	ir.::.er.'ti.ons 	to 	e£;'tt.tJlish 	a 	dEalership. 	The 	['~rect:::'r t.llen
no:.ifies 	",:'1 	j::res('!l'i;. 	dec.l€rs 	of 	the 	same 	make 	or 	(;jokes 	cf 	vehicles
in 	the 	co:rdT.UDity 	cr 	te;:ri'tory 	anc 	gives 	them 	t.he 	CP?o.::-:c;r.':'ty 	t.o
protest. 	e.nd 	denlonstrate 	at 	cn 	acun::"ni£trativE 	hEaring 	thot 	thEY 	61'e
provicing 	adequat.e 	representation. 	(Florida 	J..d.mlr.i8t.rctive 	Code,
Rule 	l5C-l .08). 	The 	Policy 	~anual of 	the 	Divi&ion 	of 	~o~or
Vehic 1 e6 	de fi nes 	"commu~ity 	or 	~err i tory" 	85 	the 	coun t y 	in 	.... 1. ich
the 	new 	dealership 	will 	be 	located 	if 	there 	are 	exicting 	dealers
of 	the 	same 	make 	or, 	if 	the 	new 	dealership 	will 	be 	loccte~ near
the 	edge 	o! 	~he 	county, 	that 	county 	and 	the 	adjoining 	county. 	In
instances 	in 	which 	nO 	present 	dealers 	of 	the 	s~me make 	ere 	located
in 	the 	count.y,ooll 	dealere 	of 	the 	s~me make 	in 	911 	adjoining
counties 	C.re 	givGn 	the 	oppo~tunity ~o be 	heard. D 	If 	existing
de8le~s do 	object 	to 	the 	establishm8nt 	of 	the 	new 	dealershipl
hee.r ings 	are 	he Id 	and 	findings 	are 	made, 	.,. i th 	the 	burden 	of 	proof
on 	the 	new 	dealership 	and 	the 	manufacturer 	to 	show 	inadequcte
represent.ation 	by 	the 	E>xisting 	dealerships.
The 	re?eal 	of 	S 	320.642 	end 	its 	implementing 	administrative
rules 	and 	policies 	is 	~ikely to 	increase 	competition 	in 	retail
outomooilo 	ma=ho'\;.c 	,;"n 	.l,;.;;'~::. 	~n-:\ ":'hQrQby 	hono-fi-t- 	.... ,...., ... c"n'lc.Y'c 	;:;,w.~
laws 	limit 	manc:act~rers' f;:eedom 	to 	expand, 	~~d 	therefore 	ten~ 	-~
inc~ease the 	COEt. 	c: 	c~£tr~buti~s e~tomo~iles end 	facil~~ate
escala~ion of 	eutomobile 	prices. 	Cons~~e~s may 	fine 	fewe=
oppo=~~nities to 	shep 	amons 	decle=ships 	fc= 	be~~e= price5 	end 	may
have 	to 	trc.el 	fc.rther 	and 	expen~ more 	time 	in 	the 	course 	c: 	their
6 	Eased 	on 	theEe 	de~ini~ions, a 	dealer 	in 	~es~ 	Palm 	Beech
~ay ~=o~es~ a 	new 	dealershi~ in 	Bel 	G:ade, 	~~?rcxime~elv
~~ 	~~les 	awcy~ bec£u~e ~he~-a~e bo~h in 	the 	~ame 	coun~y~
c:: ' IT:' . - -1 \.' 	"Qe - ~ e - 	• n 	J- a c}- c: on" < , 'e"" ",., 	- - 0'" e s'" 	... \. e	___ J.._..Lc,_ 	jl 	c;;. 	c:::. __ 	-4- 	~ __ , 	.~ ...... _ ... 	41 It.:.. J 	~_ 	~ 	..... 	\-!l
ope"-ing 	of 	a 	new 	oealerEhip 	i~ St. 	Aug~5~ine, 	again
a??rox~rnately 40 	miles 	away, 	i! 	~here is 	no 	othe=
cieele:rs:-.ip 	0: 	-:'ha:. 	same 	mab3 	in 	St. 	J..uq-.:stine, 	because
... ;.., e <:: e 	- \...' 0 	~; ... ; 	s 	- -; 	M ..: 	- 	~ 	., 	:	~.j _ 	~" 	... ~ __ e 	C._e 	.r. 	a",,)ace71~ _o ... n 	es.
3
'- 	= 	- ..J_" -
- -- -,-.. --:-'-' . .:.. . 	- _' _' I

6hor~ir.s. 	~~e 	r~c 	Bu~ecu 	C~ 	£cc~Qmics' 	S~e!: 	RepQ=t i 	5UPPO=~E
~~~~_~~e~~£~s; 	~he 	=e~~r~ 	concl~je~ ,that 	R~A 	~ews 	raistid
c;.u-"--, ... u~.L.,,, 	,t-r ..... CE; 6 , 	on 	".e:~ge, 	by 	I3.l.X 	percent..
The 	claim 	that 	markets 	~~ll 	be 	flooded 	w~th more 	dealers 	than
i=)c:cn:.:t.l 	Eb.lc-e 	in 	2. 	rrl2.rkE~ 	c~ri 	~:~~P?ort 	c.p'pear~, 	unfot.:.nd~d. 	it.
""oul-d 	net 	be 	in 	trle 	econor.I.i.C 	iLt",::8st 	of 	eit.he:::- 	p:::-cfCpect:Vf?
aealcrE 	C~ 	manu!~c:.ur6::s ~o 	~nveE:' in 	such 	a 	market. 	Prospective
aeel-erG 	c.:G 	lih::·ly 	to 	<;1\'(3 	cc.~e:~l 	cor.EidE.-ration 	to 	....·hl.;t 	the
Ii, a r Y; e t. ..... i. _.:. 	be c..,: 	in 	0 r de.: 	L (; 	f 1- (J:' i::' C t 	the i;- 	in v (, t: t.lJH? n tin 	r E: a 1
c~t~:C', 	inventory 	cnd 	t-)(::?r~o;.~.E:l. 	}:anu!actu::erE 	will 	1i).(8·.... i5e
evoid 	over-Eatu=ating 	a mar}:8t, 	bQCbUee 	the)' 	have 	a~ 	~nte:~e6t i~
the 	fjnancial 	well-being 	of 	existing 	dealers. 	~ 	manufacturer 	that
treats 	existing 	d8alers 	badly 	i~ 	Jikely 	to 	have 	dif:iculty 	finding
ne~ denlers 	when 	the 	need 	arisee. 9
In 	adcition 	to 	the 	n~t~r21 Dro~ection of 	mBrk~t forces,
de~ler6' 	intereets 	bre 	furth8r 	?=otected 	by 	existing 	lawE,
'7,
8
i,':tcr 	the 	release 	of 	the 	Bu::::-eau 	of 	Eco:lorr,ics 	(BE) 	Staf::
Report, 	Wh~rton Econometric 	Forecasting 	Associates 	(~EFA), 	at
the 	request 	of 	the 	Ne~ional Au~o Dealers 	ABsocietion,
prepared 	a 	report 	that 	r8vie~s 	the 	Staff 	Report 	and
challenoes 	its 	conclusion 	that 	orices 	of 	automobiles 	would
= is e 	a~ - a 	=e5ul t 	of R1-:":r.. 	1a"·5 	in· area s 	of 	gro .. lng 	popul B tion .
T~e 	WEFh 	report 	also 	C~SCUSS6S the 	theoretical 	arguments 	thct
R~~ 	le~s 	are 	desirable. 	Attacr~ent 2 	is 	a 	BE 	paper 	that
r~sponds to 	the 	WEFA 	rG?c~~.
P=ice 	inC::-G2..S6S 	:.-esulti;IS 	£::::-orn 	R."'..A 	1a",,'s 	ere 	most 	lib;,':'y 	to
occur 	in 	counties 	0:'- 	~etropclitan areas 	experiencing
'''''~-~·a'''''~s .l..: n 	pO~'Ui~"': "n 	(an"; 	t"',.,. .....-,J: o .... e 	: 	~ .... eac::,ec 	J n 	dc::>manc)	_~"' __ 't;;;; ..... - 	... 	:', 7'"'" ............. 	~ 	.1t;;:_ 	- 	- 	. _ 	"-- 	_... 	- 	,-'"
~ne 	:.-e~ults 0= 	~nl6 	F~C 	6~UCV 	a:.-e 	~on£~ste~t 	with 	otner
I:'-uc'es 	o)-Jo.,.,·"""'" 	.-;..".- 	'''''--€~se-d ""'-'ce" 	.... c::.c-',.- 	~-orn RYJ: 	'a1,,'C	0..1.... 	...... 	L-j.. 	.- ... :' 	...... _ .... _ ... __ 	c.. 	t"-...... 	-.J ..... _ .... J-.- 	Jo. - 	......
~ 	2c}:,::.::::-c, 	E.';.,'., 	J::::-., 	"':'ne 	::ffec::.s 	c: 	$:'2.-_2 	;"l.l:.om~bile
D'2-ale::- 	En~:.:~ Re~l:.lc..t.i:::-:s 0:1 	:~e\o," Ce.::- 	P=':'<:es f" 	E;O;1QIT.,iC
: -;~" J -:', 	V (:;:... 	XXI v, 	Nc. 	2 	( J.. ?:.- ~ 1 	1 9 8 5 ), 	?;;. 	2 2 3 - 4 2, 	and
S~i~h, 	R.L. 	"F=anchise 	Regu12tion: 	~~ 	Econo~ic Analysis 	o~
S~atE 	Res~~ic~~cns on.~~~o~c~~le ~is~ri~u~icn( II 	JQ~-nE2 Q~
~2~ 	e~~ 	E~QnQm';~f, Vol.XXV 	(~pril 	1982), 	:25-57.
c Ee::ry 	Fc:.-d 	di 6cove:::ed 	t::':"s 	to 	'J:>.e 	~:.-ue 	",,-hen 	ir. 	1 S 2 S- 3 0 	he
increased 	the 	n~~~e::::- of 	?o:::-c 	dealerships 	while 	c~tting
commiss ions 	:::.-om 	2 «~ 	tc 	1 -; .:.:t . 	~~r.~' Fc=c 	dealers
de£ecte~, 	c::ter. 	tu::-~inc to 	:::':"val 	Chev:.-ole:.. 	~. 	Nev':"no 	&
... t 	::':":1, 	:c::c: 	~Y;:'~~f~:-"~ c~~ ~bc:'2,.z.;"';;e ~~:t) - 	!;:2.3 	c":
575-51 	(1962).
- , - - 	- --

including 	t:-IC 	J..wt.omobile 	Df:a~~~'B :cy 	~:"'. Cou::-: 	A:t. 	(·'r.~DC J,ct."),
15 	U.S.C. 	SS 	1221-1225 	(lS~6)lU, 	end 	the 	right 	to 	Eue 	for 	breech
of 	co~trac: in 	t.he 	same 	feE~ion as 	!~~~chisees i~ 	eny 	ot.her
industry. 	Consequently, 	r-~v.A It. .... s 	ep?€t.::- 	unnecessary 	:'0 	protect.
the 	interests 	of 	dealers,~l
Witho'Ct 	the 	restrbi~t thet. 	the 	~~ 	lews 	~:bce 	on
manufacturers' 	Bbility 	tc 	ccm?Gte, 	rn~n~!bc~urers can 	be 	more
rt:6por.sive 	to 	consu.'TIer 	derr,c.ncs. 	:: 	is 	.::130 	Cinl':"koly 	t.f:t.:'
repealing 	R!"J'j, 	Ib\o,'s 	l..-ill 	recuce 	the 	qUE-lity 	0: 	oE:2ler 	fervice 	:-JElow
the 	level 	tho: 	conSt:mers 	FEek; 	vig,:.;rocs 	corr.pe:.itic;-, 	{.l..IT,ong
mbnufacturers 	and 	dealers 	w:ll 	e~sure that 	conSlli~er5 receive 	the
mix 	of 	service, 	quality, 	quantity 	and 	price 	they 	aesire.
Section 	320.645 	may 	elso 	reise 	CO~5umer automotive 	costs.
It 	prohibi~s automotive 	ffi2nufacturers 	from 	o~ning or 	ope:::,eting 	~
deale:::'ship 	except 	in 	periods 	of 	trans:tion 	of 	ownership 	from 	C~e
indepe:nden:. 	dealer 	~o 	anothe:-. 12 	;'.5 	2. 	general 	propos i ~ion, 	Wt;:
believe 	that 	a 	manufacture:- 	should 	be 	pe:-mitted 	to 	esteblish
whatever 	~ix of 	wholly-o~ned and 	independent 	outlets 	the
manufacturer 	finds 	Most 	s2tis~acto=y. 	Manufacturer-owned
10
~ ,	J._
12
ADDC 	Act 	imposes 	upon 	au~omcbile manufacturers 	the 	duty
to 	deal 	in 	good 	faith 	~ith their 	dealers 	and 	grants
dealer6 	the 	right 	to 	sue 	manufac~urers for 	breach 	of
that. 	duty.
:: 	~he EeCA 	Committee 	decides 	to 	reenact 	~ome version 	of
S 	320.642, 	we.would 	reccITu"':'lend 	the.:: 	"comrrr..l:-.:t.y 	or
t.e::-:::'i~ory" be 	statutorily 	c'2:i.neci 	and 	li::-;i~ed. 	In 	mar:y
stat.es 	t.he 	?~~ 	laws 	establish 	a 	rcdius 	bes~d on 	mileage
(~, 	10 	mileE) 	from 	the 	proposed 	ne~ deele:::'ship 	i~
~~ich exis~ing deele:::'s 	may 	p:-otest. 	Tne 	present 	::-ules
c: 	t~e 	Dep~r~men~, basec 	on 	a 	cou~ty 	or 	acjaoent 	or
conti;uous 	counties, 	cllo~ protests 	from 	much 	q=ea~e=
a:::e,as, 	me.r.: 	c:. 'r.'hich 	So, ~e;·o:1c. ...:-:~~ 	is 	n?--:.LIlt.l~y jud?ed
~o 	~e 	a 	corr~~n:~y. 	A ffi~lcsge 	rcc~us 	~OU1C 	:::ecuce 	tne
ar.~icompet~t.ive e:fects 	c~ 	the 	:~w. 	Add~tionclly, ~he
b~rden c: 	proo: 	as 	to 	sho~:ng a8equa~e :::e?re5en~aticn
could 	be 	shi~ted to 	:he 	~=c::estinG dealers. 	This 	would
c.iscou~age deale~6 	:=om 	D~o~est.in; 	~urelv 	~o 	delay 	~he	... 	.t 	.. 	_ 	-'
€~t~jlis~~en~ ot 	a 	ne~ 	dealership.
This 	5ec~ion does 	no:: 	~?ply to 	any 	dealerships 	owned 	by 	e
m~:1ufactu=er 	p=icr 	~c 	~av 	~~, 	:SE'.
5
---..
- - 	- 	--" ..:... 	.-- ~ , -' 	:-.~.: ::

dealership6 	micht 	entGil 	e~::c:enc~es that 	vould 	low~~ ~he 	cOEte
of 	vchicl~s to·Flo=id~ con~~~ere.lj
In 	£ 'Jr.lJT,ary, 	~he 	rE:t:>e6l 	c~ 	5S 	2:-(;.£~2 	a~d 	.?20.GIJ5 	,,·o\.;ld 	rerrlove
certain 	res~rai~:s pr8s~r.:ly imposed 	on 	the 	re~6il 	a~tom~bile
market. 	By 	rerncvins 	these 	restraints, 	~e 	beliove 	the 	rlcri~c
Legislet\.l::e .....·ill 	~id 	CO:-l!=\.lfTH?:'S 	c': 	mc,to~ ve:;icles 	and 	mo"t.cr 	vchic~e
servic(;$. 	~e 	c.??:::oc:'o.:.e 	t:-lis 	op?cr:'t:nity 	to 	?ro·.;i.de 	our 	ViO""'5 	on
these 	provisions.
Very 	t.ruly 	YOU~6,
~~ 	Q\<-D
Pa u 1 1:. 	Dc1 vis
R8gion~1 Director
J,tll:O.I:t.o 	Hegione.l 	Office
13 	If 	~he 	6~a~e decides 	to 	retain 	S 	320.642, 	~eGuirinc notice- 	..under 	that 	6sction 	0: 	B 	dec~sio~ 	~o 	eEta~lish 	a 	ffian\.lfac~urer-
o~nec 	dealershio 	~oulc be 	c:::efe:::c~le to 	~he 	~an or. 	such
O'~~~€-e~;ps c~~:_:nen in 	r- -~o 	6~~	............ 	__ .. ,_ 	_ • .i\...c::...:.. 	_.J- 	~..)_ 	• 	~-,.
6
-,-- 	-
"-- , 	-.- ...--