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lessnonymous | 11 years ago

TL;DR: To save y'all from listening to the (interesting) Planet Money podcast:

Back in the early C20 depression the auto makers were the biggest companies in the USA. And they'd force the franchisees to purchase cars or lose their franchise.

So states enacted legislation to ensure the auto makers couldn't close a franchise. Nor could the auto maker grant a second franchise in the same location. And (I think I'm inferring as I can't remember hearing this explicitly) could not open their own dealership that competed with the existing franchise.

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hnnewguy|11 years ago

A great example of "The Law of Unintended Consequences"?

A law meant to help the people, hinders the people later on. Getting this stuff right isn't easy.