In addition, many of the companies began moving from geographic territories to “lists of calls,” which were the only addresses that the dealer could call on. These violations led to a wave of litigation over such non-compliance. Years ago, these tool companies offered “dealerships” but did not comply with applicable franchise disclosure rules. The dealer pays cash for the tools and generally sells them to the mechanic over time and with the mechanic making weekly payments. In the typical tool dealer arrangement, the dealer is the tool company’s customer and purchases tools for resale to the dealer’s customers who are typically mechanics or others that use high quality tools in their jobs. Over the past 30 years, there have been a tremendous number of lawsuits involving dealers for the major tool companies. The Surface Transportation Assistance Act FAQs.The Surface Transportation Assistance Act.Contact Your Congressional Representatives.Why Franchise Cases Are Difficult For Non-Franchise Attorneys.Key Points Regarding Distribution Agreements.Breaking Away From the Franchisor or Supplier.What to Do Before Starting Any Business.
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