COURT APPROVES ORDER PROHIBITING SALE OF SNOWMOBILES WITHOUT A FRANCHISE
January 24, 2003
JANUARY 10, 2003
LEANNE ROBBIN, ASSISTANT ATTORNEY GENERAL
Attorney General Steven Rowe announced today that his office has obtained an order from the Superior Court against Harry's Used Sales of Linneus, Maine, enjoining the dealership from selling new snowmobiles or all-terrain vehicles without a franchise from the relevant manufacturer. The State alleged that Harry's Used Sales was purchasing new snowmobiles and all-terrain vehicles from dealers in Canada at prices below the wholesale prices paid by franchised dealers in Maine. By offering the Canadian vehicles for sale, Harry's Used Sales potentially placed other Maine dealers with a valid franchise at a competitive disadvantage. In addition, sales of such machines could harm consumers, in that the purchasers of new snowmobiles or all-terrain vehicles from non-franchised dealers do not get the benefit of the manufacturers' warranties or notices of recalls due to possible manufacturing defects.
The court's order enjoins Harry's Used Sales from offering any new snowmobiles or all-terrain vehicles for sale without a valid franchise from the manufacturer. In addition, Harry's Used Sales is required to maintain records of all machines sold for five years and to make such documents available to the Attorney General for inspection upon request.
On July 25, 2002, a new law came into effect making it illegal to sell or offer for sale new snowmobiles or all-terrain vehicles without a franchise from the manufacturer. This is the first enforcement action filed under the new law.