Dealers Seek Summary Judgment in Challenge to Scout Direct Sales Model in Florida

BSM is representing twenty-eight (28)  Florida Volkswagen and Audi dealers challenging Scout’s plans to sell vehicle directly to Florida consumers.  Florida law prohibits a common entity of an OEM selling vehicles in Florida through franchise dealers from selling new vehicles direct to consumers.  Florida law defines “selling” to include taking deposits from a consumer.  

Through discovery, the dealers have obtained evidence in support of their claim that Scout is a “common entity” of Volkswagen of America and is taking deposits for Scout vehicles from Florida residents.  Accordingly, the VW and Audi dealers have sought a summary ruling from the Court finding that Scout is engaged in the business of “selling” Scout vehicles direct to Florida residents.  

BSM expects a hearing will be scheduled to argue the summary judgment motion before the Court within the next few weeks.  A ruling will follow that hearing.