In this week’s episode of Fridays with Frank, former BTA General Counsel (retired) Bob Goldberg and Frank delve further into the somewhat controversial, updated dealer agreement from Konica Minolta. Goldberg examines KMBS’s “right to renew,” which he says is the heart of the matter. The part about giving 90 days written notice raises questions, he acknowledges, and has caused consternation for many dealers who want to better understand why it was added. Some wonder if it’s because Konica Minolta is preparing to sell or perhaps merge. Will they disband the dealer network? Whoa, don’t fret so fast, he suggests, encouraging that we instead pump the proverbial brakes.
Many people are failing to see a key provision, Goldberg explains, again referencing Paragraph 13c, which includes language about “fair and equitable treatment” that holds up in court, as he illustrates. He also covers the arbitration provision in Paragraph 18, discussing auto-renewal and quotas (or the lack of therein). Frank chimes in about the importance of the new contract’s certified service tech requirement. Cannata also cites the inter-territorial concerns of smaller dealers who worry about mega-dealer encroachment. Goldberg contends that dealers of all sizes have their role in the marketplace: a concept that he believes the manufacturers support. He reminds viewers that discriminatory actions are not considered fair and equitable! At nine minutes, this video is longer but definitely worth the watch!
