The judge also found that Harley-Davidson’s “rule of 20” – an unofficial policy of moving to terminate any dealer found to have made 20 or more sales in violation of the NRSP – “conflicts with the NRSP in that the sanction imposed for a violation does not always ‘[depend] on the circumstances of the violation,’ but depends strictly on the fact that the dealer has made more than 20 sales in violation of the NRSP.”
Riverside Harley-Davidson was ordered to pay the costs of Harley-Davidson’s audit, but will not have to pay Harley’s legal costs for fighting the termination protest.
Following the Riverside case, Harley-Davidson is seeking to terminate Monterey County Harley-Davidson. That case is No. PR-2338-12, filed June 22, and board documents list that case as in settlement negotiations. No further action is expected until September.