Defining A Business’s 'Permanent Investment'

Law360, New York (January 12, 2012, 12:44 PM EST) -- This is a follow-up article to Defining Permanency of Investment.[1] As previously noted, the phrase “permanency of investment” appears in the dealership statutes of approximately two-thirds of the 50 U.S. states. In Chapter 218 of the Wisconsin Statutes, in order for an auto manufacturer to add an additional dealership into the market, one of the factors to consider is: “The permanency of the investment necessarily made and the obligations incurred by existing enfranchised dealers in the performance of their franchise agreement.”[2]

“Permanent investment” is a related...
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