John is a sales executive with Supercharged Electric Cars Inc., a startup car company dedicated to building affordable electric sports cars. After years of development, the company is ready to start selling its first models to the public. John believes the best way to sell cars to the public is directly through the company website, like how Dell sells its computers or Apple sells its laptops. Customers would make contact with the company through the website, and company sales representatives would arrange to meet with the customer, test drive the vehicle, arrange financing, and deliver the car, all at the customer’s home or workplace. Customers who need service would bring their cars to company garages where company technicians would provide service. By maintaining control of the sale and service of this exciting new product, John believes Supercharged Electric Cars Inc. can revolutionize not just the electric car industry, but car retailing as well. John quickly finds out, however, that his plans may not work in many states. In many states, laws exist to protect the role of car dealers in selling and servicing new and used cars. One example is Arizona’s law, which can be found here (Links to an external site.). Arizona’s law expressly prohibits car manufacturers from selling directly to customers. In addition, the law prohibits car manufacturers from controlling any aspect of the final sales price of the vehicle, which John worries may prevent the company from even publishing the sales price on the company’s website. The law also requires car companies to offer all vehicles in its lineup to all dealers for sale and prohibits the company from offering vehicles at a lower price to any other dealer in the United States. Finally, the law prohibits car companies from offering any aftermarket services or financing services in the sale of cars. Angry that this law could jeopardize his retailing plan, John would like to sue Arizona to overturn this law. Do you believe taking this step to sue Arizona is ethical? What constitutional arguments could John and his company make?

Answer rating: 100% (QA)

I think taking this step to sue Arizona is ethical because the company is being prevented from selli... View the full answer