Chic Miller operated a General Motors (GM) franchise car dealership. His written franchise agreement with GM stipulated that Miller had to maintain a floor-plan financing agreement with a lender to enable him to buy new cars from GM. Initially, Miller maintained a line of credit with a GM affiliate (GMAC), but he terminated the agreement because he felt that GMAC charged him an exorbitant interest rate. Miller was able to find another line of credit from Chase Manhattan Bank, but Chase withdrew its financing agreement with Miller after one year. Miller attempted to resume the agreement with GMAC, but GMAC refused. Miller alleged ipse dixit (an assertion without evidence) that GMAC discouraged other lenders from providing a line of credit to Miller. GM then notified Miller that it was terminating its franchise relationship with him because he failed to satisfy the financing stipulation of the written franchise agreement. Two months after receiving this notice from GM, Miller attempted to sell his franchise to Kenneth Crowley, the owner of another car dealership. GM rejected this sale, alleging that Miller no longer had a franchise to sell because GM had terminated the franchise agreement two months earlier. Miller sued GM for failing to help his franchise obtain floor-plan financing and for rejecting the sale of his franchise to Crowley. How do you think the court ruled in this case? What requirements must GM meet to lawfully terminate a franchise? Did GM meet those requirements?
Answer to relevant QuestionsMargaret Miller operated an H&R Block tax- preparation franchise for 15 years. She hired William Hehlen as an income tax return preparer for five years, from 1997 to 2001. Each year, Miller and Hehlen signed an employment ...Between 8 p.m. on April 15, 2000, and 1:45 a.m. on April 16, 2000, Anthony Sulls was a patron of Silk Stockings and Cafe Del Mar. Silk Stockings and Cafe Del Mar are an adjoining bar and adult entertainment nightclub. Sulls ...Madison Real Estate is a limited partner of KanAm USA XIX Limited Partnership. The partnership agreement sets out the rights and obligations of the limited partners and the general partner and provides limited partners with ...Lawrence Roseman was the sole corporate officer of RLG, Inc., the owner-operator of the Spring Valley Landfill in Wabash, Indiana. The Indiana Department of Environmental Management (IDEM) filed suit against RLG, seeking ...Atul Bhagat was an employee of Nvidia Corporation. Nvidia successfully competed for a multimillion-dollar contract to develop the X-box video game console for Microsoft. Nvidia's CEO sent a companywide e-mail announcing that ...
Post your question