Most companies publish manufacturer's suggested retail price (MSRP). And they may not discriminate among the distributors. You can't enforce a contractual clause if it contravenes national/state laws.Ĭlick to expand.You need to study and understand anti trust laws. "A dealer who adds large surcharges that lead to customer complaints might be doing the opposite of promoting customer satisfaction." I suspect that using that clause to force MSRP wouldn't hold up in court as it is clearly being used to control pricing and that is illegal.
If you read the articles about this announcement, the manufacturers are not saying that dealers have to sell at or below MSRP (because that would be illegal), instead they are relying on dealer clauses - " In GM's dealer agreement, the dealer agrees to promote customer satisfaction with customers' purchase experiences," Gordon said. All societies have some rules to protect people from the worst effects of capitalism.
Kudos pricing free#
I have also never said that the USA is an 'unfettered free market capitalist society'. I didn't ask if you had seen it, I asked if you would be happy with it? If you allow manufacturers to set pricing, then that is a possible consequence and one of the reasons it is illegal. It would be better if the manufacturers took the pre-orders and then the customer assigned that pre-order to a dealer when they actually placed the order and had a price agreed. It is a pretty bad businessman who will accept a pre-order and then look to make more when the order is actually placed. When I ordered my car, I signed a contract and that is a fixed price that can't be changed. I didn't pre-order so I don't know the process but I presume that it doesn't form a contract and so legally is unenforceable. I agree with you Kami that if you pre-order at a known MSRP then I would expect that price to honoured.
Also, price gouging is usually defined as excessive or exorbitant pricing and I hardly thing a 5-10% markup would fit that definition. States have various statutes - Price Gouging State Statutes, nearly all of them apply to disasters or states of emergencies, not buying a car. With reference to price gouging, there is no federal law against it in the USA. You can't enforce a contractual clause if it contravenes national/state laws.
Click to expand.I didn't ask if you had seen it, I asked if you would be happy with it? If you allow manufacturers to set pricing, then that is a possible consequence and one of the reasons it is illegal.
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