Detroit Auto Dealers Association, Inc

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IN THE MATTER OF DETROIT AUTO DEALERS ASSOCIATION, INC.

CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket 9189, Complaint,” Dec. 20, 1984--Decision, June 3, 1997 This consent order prohibits each dealer, among other things, from agreeing with any other Detroit area dealer or dealer association to establish, maintain or adhere to any hours of operation, or requesting or encouraging any dealer or dealer association to maintain any hours of operation; prohibits each from exchanging information with any dealer or dealer association concerning hours of operation except in certain circumstances; and limits a minimum weekly hours-of-operation requirement to the time during which the dealers were already in compliance.

Appearances For the Commission: Ernest Nagata, Willard Tom and William Baer.

For the respondents: Lawrence Raniszeski, Colombo & Colombo, Bloomfield Hills, MI. John Youngblood, Abbott, Nicholson, Quilter, Esshaki & Youngblood, Detroit, MI. and Kenneth Wilson, Stringari, Fritz, Kreger, Ahearn, Goodnow, Bennett & Hunsinger, Detroit, MI. DECISION AND ORDER The Federal Trade Commission having issued its two count complaint charging the respondents named in the complaint issued in this matter on December 20, 1984, with violation of Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. 45; and the respondents having been served with a copy of that complaint, together with a notice of contemplated relief; and Respondents identified in Attachment A to this order, their attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order for Count I of the complaint, an admission by the identified respondents of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreement is for settlement purposes only, and waivers and other provisions as required by the Commission's Rules; and * Complaint previously published at 108 FTC 193. Decision and Order 123 F.T.C.

The Secretary of the Commission having thereafter withdrawn Count I of the of the complaint from adjudication in accordance with Section 3.25(c) of its Rules; and The Commission having thereafter considered the matter and thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 3.25(f) of its Rules, the Commission hereby makes the following jurisdictional findings and enters the following order: 1. Respondent dealers identified in Attachment A are all corporations with their principal places of business located at the addresses shown in Attachment A.

2. Individual respondents identified in Attachment A are officers of various dealers, as shown in Attachment A, and as such they formulate, direct and control the acts and practices of the dealers for which they are officers.

3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding as it relates to Count I of the complaint and of the identified respondents, and the proceeding is in the public interest.

ORDER It is ordered, That for the purposes of this order, the following definitions shall apply:

1. Person means any natural person, corporation, partnership, association, joint venture, trust, or other organization or entity, but not governmental entities.

2. Dealer means any person who receives on consignment or purchases motor vehicles for sale or lease to the public, and any director, officer, employee, representative or agent of any such person.

3. Dealers 1 7 3 1 3 768 2728 300 45 96.382889 association means any trade, civic, service, or social association whose membership is composed primarily of dealers. 4. Detroit5 1 7 4 1 3 773 2870 136 45 95.090240 area means the Detroit, Michigan metropolitan area, comprising Macomb County, Wayne County and Oakland County in the State of Michigan.

5. Hours5 1 7 5 1 3 753 3082 57 57 96.999405 of5 1 7 5 1 4 814 3082 260 56 93.697891 operation means the times during which a dealer is open for business to sell or lease motor vehicles. DETROIT AUTO DEALERS ASSOCIATION, INC. 1429 1427 Decision and Order 6. Weekday5 1 3 1 1 3 870 406 167 44 96.115784 hours means the hours of 9:00 a.m. to 6:00 p.m. Monday through Friday.

7. Non-weekday5 1 3 2 1 3 957 546 165 44 96.511841 hours means hours other than 9:00 a.m. to 6:00 p.m. Monday through Friday.

8. Respondent means any dealership, individual, or association respondent. :

9. Commission means Federal Trade Commission. I.

It is further ordered, That the order issued in this matter by the Commission on February 22, 1989, as modified by the order issued by the Commission on June 20, 1995, shall be and hereby is incorporated as part of this order except as provided below: A. Respondents' compliance to date with Part II of said orders shall constitute full compliance with Part III. B. The period for which compliance reports are required under Part X of the order of February 22, 1989, shall run for five (5) years from the effective date of the order of June 20, 1995. Any reports filed pursuant to said orders to date shall be construed to have been filed in compliance with said orders as modified herein. C. All other obligations under said orders shall be construed to have commenced on the effective date of the order of June 20, 1995, and shall run for the periods specified in said orders. ATTACHMENT A Dealer Respondents Individual Respondents Crestwood Dodge, Inc. Robert C. Borst 32850 Ford Road c/o Bob Borst Lincoln-Mercury, Inc., Garder City, MI 48135 1950 W. Maple Road Troy, MI 48084 Bob Borst Lincoln-Mercury, Inc. Robert Dusseau, a/k/a/ Robert F. Dusseau a/k/a Bob Borst Lincoln-Mercury Sales Inc. c/o Bob Dusseau Lincoln-Mercury 1950 W. Maple Road 31625 Grant River Avenue Troy, MI 48084 Farmington, MI 48024 Bob Dusseau, Inc. Robert Maxey a/k/a Bob Dusseau Lincoln-Mercury c/o Bob Maxey Lincoln-Mercury Sales Inc. 31625 Grant River Avenue 16901 Mack Avenue Farmington, MI 48024 Detroit, MI 48224 Bob Maxey Lincoln-Mercury Sales, Inc.

16901 Mack Avenue Detroit, MI 48224 Crest Lincoln-Mercury Sales, Inc.

36200 Van Dyke Avenue Sterling Heights, MI 48077 Stewart Chevrolet, Inc.

23755 Allen Road Woodhaven, MI 48183 Woody Pontiac Sales, Inc.

12140 Joseph Campau Hamtramck, MI 48212 Jack Demmer Ford, Inc.

a/k/a/ Jack Demmer Ford 37300 Michigan Avenue Wayne, MI 48184 Al Long Ford, Inc.

13711 E. Eight Mile Road Warren, MI 48089 Ed Schmid Ford, Inc.

21600 Woodward Avenue Ferndale, MI 48220 Ray Whitfield Ford a/k/a/ Ray Whitfield Ford, Inc.

10725 S. Telegraph Road Taylor, MI 48180 Decision and Order 123 F.T.C.

William Ritchie, a/k/a/ William R. Ritchie c/o Crest Lincoln-Mercury Sales, Inc.

36200 Van Dyke Avenue Sterling Heights, MI 48077 Gordon L. Stewart, a/k/a/ Gordon Stewart c/o Stewart Chevrolet, Inc.

23755 Allen Road Woodhaven, MI 48183 Woodrow W. Woody c/o Woody Pontiac Sales, Inc.

12140 Joseph Campau Hamtramck, MI 48212 John E. Demmer, a/k/a/ Jack E. Demmer c/o Jack Demmer Ford, Inc.

37300 Michigan Avenue Wayne, MI 48184 Edward F. Schmid, a/k/a/ Edward Schmid c/o Ed Schmid Ford, Inc.

21600 Woodward Avenue Ferndale, MI 48220 Raymond J. Whitfield a/k/a/ Raymond Whitfield c/o Ray Whitefield Ford 10725 S. Telegraph Road Taylor, MI 48180 MAHLE GMBH, ET AL. 1431 1431 Complaint