Roadtrek Motorhomes v. Calif. New Motor Vehicle Bd. CA4/3

FACTS AND PROCEDURAL BACKGROUND

Roadtrek is a recreational vehicle manufacturer. Mega operated several dealerships that sold 60 different brands of recreational vehicles from 10 different manufactures, including models produced by Roadtrek. Mega began selling Roadtrek vehicles in 2001. According to Mega’s witnesses, Roadtrek vehicle sales amounted to about 10 to 15 percent of the dealership’s inventory. However, Mega’s sales of Roadtrek vehicles constituted a significant percentage of the manufacturer’s business. According to the Board’s factual findings, Mega initially financed wholesale purchases of Roadtrek vehicles through flooring plans with lenders. Roadtrek assisted Mega and other dealers by reimbursing them for interest owed to a lender up to a maximum of 90 days. In late 2005, Roadtrek orally proposed that it provide Mega with vehicles “on the arm,” meaning Roadtrek would deliver vehicles to Mega without charge and Mega would pay Roadtrek for each vehicle as it was sold. Based on the evidence, the Board found, “Although there were friendly discussions . . . about interest and the terms of the arrangement, nothing was reduced to writing and no invoices were sent to Mega…