3rd Circ. Says Ford Surcharge OK Under NJ Franchise Law

Law360, New York (April 9, 2012, 4:26 PM EDT) -- Ford Motor Co. can legally add a surcharge to the wholesale price of vehicles in order to recoup the cost of a New Jersey franchise law that requires automakers to pay dealers retail rates for warranty service, the Third Circuit ruled Monday.

A group of dealers sued in 2002 after Ford's so-called New Jersey Cost Surcharge went into effect, and a New Jersey federal judge ruled the charge violated the New Jersey Franchise Protection Act and undermined its purpose of ensuring dealers get paid the prevailing...
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