Yamaha Motor Corp. v. Superior Court

Petitioner Yamaha Motor Corporation seeks a writ of mandate to compel the superior court to vacate its order overruling Yamaha’s demurrer to the first amended complaint of real party in interest Van Nuys Cycle, Inc. and to enter an order sustaining the demurrer without leave to amend.

I

Facts

Van Nuys Cycle is a motorcycle dealership franchised by Yamaha since 1966 to sell and service Yamaha motorcycles. In September 1982, Yamaha began distribution and sales of a new product which they designated as the RIVA motorscooter. Van Nuys attempted to order the RIVA products pursuant to its dealer agreement, but Yamaha refused to sell the RIVA to them or to other of their franchised dealers, choosing instead to establish new dealerships for distribution, sales and service of the RIVA products. Yamaha took the position that the RIVA was a motorscooter, not a motorcycle, and thus did not come within the terms of the motorcycle dealer agreements.

Many dealers protested this situation to the New Motor Vehicle Board, and in June 1984, that board determined in a ruling on several of these consolidated protests that the RIVA was a motorcycle, not a motorscooter, and was included…