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Date Posted: 15:38:48 02/05/02 Tue
Author: MP
Subject: Re: Thanks MP, this is very interesting and helpful. As you will see from comments elsewhere on this site, the liquidators, whilst apparently acknowledging that Automodena "purported" to act as our agents, claim the company then acted as principal vis-a-vis the dealers (as far as I can work out their legal advice on this point is based solely on the fact that payment came from AutoModena - they don't seem to have any contract/order details that would bear this out). Please can you answer the following:
In reply to: 's message, "Thanks MP, this is very interesting and helpful. As you will see from comments elsewhere on this site, the liquidators, whilst apparently acknowledging that Automodena "purported" to act as our agents, claim the company then acted as principal vis-a-vis the dealers (as far as I can work out their legal advice on this point is based solely on the fact that payment came from AutoModena - they don't seem to have any contract/order details that would bear this out). Please can you answer the following:" on 18:16:38 02/04/02 Mon

The legislation that covers the points covered is The Distibution of Motor Vehciles (Regulation (EC) no 1475/95 which is better known as The Block Exemption Agreement.

In the Member States of the European Union motor vehicle manfacturers distribute their products through selected dealer networks. This distribution is governed by a treaty know as the block excemption agreement. The agreement says that because of the highly technical and specilaised nature of the product being distributed it should only be distributed by a distributor appointed by the manufacturer.

As an EU resident you are entitled to enjoy the benefits therein and excercise your right to buy anywhere in the marketplace. Car dealers however are specifically prevented from buying from other traders in Europe by the manufacturers who enforce the small print of the block exemption agreement.

There is room within the legistlation that says that a private indivdual wishing to permanently import a means of transport from one member state to another may do so by the appointment of an agent to act on their behalf.

This proved to be a satisfactory way for a good number of brokers to establish their businesses from the late 90's onwards. Some however had far grander ideas and realised that Leasing Companies and Rental Fleet Companies are not considered to be car dealers within the framework of the legistlation. Several lease companies therefore appeared in the market place who could then approach a franchised dealership order several cars at a time, take delivery, and then dispose of them as they pleased.

This explains why if you go to a car supermarket when you look in the log book you will see a lease company name as the first registered keeper.

The benefits are plain to see, under the regulations an appointed agent should provide a completely transparent quotation at the outset that demonstrates the exact purchase price of the car including all negotiated discounts which should be passed on the consumer. In addition all ancillary costs including the appointed agenst fee should be made clear. The consumer should be able to see all the way through to the supplier and understand their terms and conditions. The contract should be between the supplying dealer and the consumer with the agent merely acting as an intermediary in exactly the same way that a Solicitor would do during the conveyance of a property from one party to another.

Which brings me to another point, the mere fact that money has been passed to an agent does give the agent any right to that money. If you paid your Solicitor for your house it is his duty to put the vendor into funds immediately for you to take possession of the keys and for the house to be delivered up.

I am no legal bod, but, I am of the firm opinion that you have good argument to make to the liquidator's that automodena presented themselves as a bona fide agent and therefore deposits paid belong to you, and, if Automodena have paid a deposit to their own leasing company then that intertarding ought to be vigorously investigated.

Hope this helps. If I have missed anything please ask again.

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