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COLONIAL PONTIAC, INC., D/B/A COLONIAL ISUZU vs. DAVE ZINN TOYOTA, INC., D/B/A ISUZU OF NORTH MIAMI, 81-003054 (1981)
Division of Administrative Hearings, Florida Number: 81-003054 Latest Update: Jun. 22, 1990

The Issue Colonial Pontiac, Inc., d/b/a Colonial Isuzu was issued a letter of intent to become an Isuzu dealer by American Isuzu Motors, Inc., and filed an application with the Department of Highway Safety and Motor Vehicles for the issuance of a license as an Isuzu dealer. Dave Zinn Toyota, Inc., d/b/a Isuzu of North Miami filed a written protest to the issuance of such license. Accordingly, the issue for determination is whether the application of Colonial Pontiac, Inc., to do business as a licensed Isuzu dealer should be approved. Petitioners Colonial Pontiac, Inc., d/b/a Colonial Isuzu and American Isuzu Motors, Inc., presented the testimony of William Abbott, Mark Darling and Mark Kahn. Additionally, Petitioners Exhibits numbered 1, 2, 5, 6 and 7 were admitted in evidence. Petitioners' Exhibits numbered 3 and 4 were withdrawn by the Petitioners. David Zinn and Carl M. Yearington testified on behalf of Respondent Dave Zinn Toyota, Inc., d/b/a Isuzu of North Miami. Additionally, Respondent's Exhibits numbered 1 and 2 were admitted in evidence on behalf of Respondent Dave Zinn Toyota, Inc., d/b/a Isuzu of North Miami. Both petitioners and Respondent Dave Zinn Toyota, Inc., d/b/a Isuzu of North Miami submitted posthearing proposed findings of fact in the form of a proposed recommended order. To the extent that any proposed findings of fact have not been adopted in this Recommended Order, they have been rejected as not having been supported by the evidence, as having been irrelevant to the issues under consideration herein, or as constituting unsupported argument of counsel or conclusions of law. In conjunction with the filing of proposed findings of fact, the same parties filed written closing arguments. Thereafter, Respondent Dave Zinn Toyota, Inc., d/b/a Isuzu of North Miami filed an Objection and Motion to Strike the Petitioners' Statement of the Case and Attachments to the Statement of Case, to which pleading Petitioners filed their Reply to Objection and Motion to Strike. Although the most that can be said for the subject documents is that they are supportive of some argument of counsel, counsel are usually afforded wide latitude in argument and, therefore, Respondent's Motion to Strike be and the same is hereby denied.

Findings Of Fact Petitioner American Isuzu Motors, Inc. (hereinafter Isuzu"), is the duly licensed distributor of Isuzu cars and trucks in the United States. Isuzu motor vehicle are manufactured in Japan. The Isuzu passenger car is intended to compete with smaller cars (compacts and subcompacts) presently merchandised in the United States, such as Toyota, Datsun, Mazda, Subaru, Honda and Volkswagen products. The Isuzu truck being marketed in the United States is a lightweight pickup truck. Isuzu's initial marketing strategy was to open 200 dealerships in 22 states. The dealerships were to be average-size and full-line, meaning they would sell both Isuzu passenger vehicles and pickup trucks. Isuzu required, however, that Isuzu sales and service occur in areas or facilities separate and distinct from where sales or servicing for other manufacturers occur. Isuzu refuses to assign a particular market area or territory to any dealer. At the time Isuzu commenced the establishment of its dealer network, it conducted market surveys and determined that there should be three Isuzu dealers in Dade County, Florida. In order to avoid any misunderstanding, each dealer was required by Isuzu to sign and date a memorandum containing that information. The memorandum established that during Isuzu's marketing Phase I and II there would be two Isuzu dealers in Miami/Dade County, and during Phase III an additional dealer would be added. Isuzu's plan and representation to dealer applicants was that there would be no more than three Isuzu dealers in Miami/Dade County, with one being located in North Dade, one being located in Central Dade and one being located in South Dade. By the time of the hearing in this cause, Isuzu had not yet reached Phase III of its marketing strategy. Isuzu began marketing vehicles in the United States in March, 1981. On April 1, 1981, the Japanese government imposed voluntary trade restrictions upon its manufacturers. Under the voluntary restraints, Isuzu is permitted to import into the United States only 17,000 to 18,000 cars per year. Isuzu did not change any of its marketing concepts due to the decreased availability of its product to be caused by the voluntary restraints. Rather, since the restraints apply only to passenger cars and not to trucks, Isuzu began appointment of additional "trucks only" representatives. Isuzu continued to establish its dealer distribution network of 200 dealers planned before the imposition of trade restraints. Respondent Dave Zinn Toyota, Inc., d/b/a Isuzu of North Miami (hereinafter "Zinn") was the first dealer established by Isuzu in Dade County. As part of Zinn's approval, David Zinn initialed the agreement that there would eventually be up to three dealers in Dade County. Zinn's location made him the North Dade dealer of Isuzu. He constructed a facility in accordance with plans approved in advance, as required, by Isuzu. He opened his dealership for business in September, 1981. Zinn was the only Isuzu dealership in Dade County until January, 1982, when the second Isuzu dealer commenced business as Midway Isuzu and became the Central Dade dealer. By the time of the formal hearing in this cause, a letter of intent had been issued by Isuzu to Potamkin to operate an Isuzu dealership in South Dade, at Cutler Ridge. In September, 1981, the same month that Zinn was opening for business, Isuzu issued a letter of intent to Colonial Pontiac, Inc., d/b/a Colonial Isuzu (hereinafter "Colonial") authorizing Colonial to become its "East-Central" dealer in Dade County. Colonial filed an application for licensure as an Isuzu dealer with the Respondent Department of Highway Safety and Motor Vehicles. Zinn filed a protest against the issuance of a license to Colonial, the proposed fourth dealer in Dade County. The parties have stipulated that Zinn is fully complying with all provisions of its agreements with Isuzu and that the only basis upon which Colonial can be licensed over Zinn's protest is if Isuzu can show its existing dealers to be providing inadequate representation. The parties have stipulated that both Colonial and Zinn are experienced and very successful automobile dealers. The site of Colonial's proposed Isuzu facility is 6.8 miles from Zinn. Between September, 1981, when Zinn opened for business, and December, 1981, Zinn was the only Isuzu dealer in Dade County. The end-of-year 1981 statistics introduced by Isuzu reveal that Zinn sold fewer Isuzu cars during his three months in business than all of the Isuzu dealers in Broward County combined, than all of the Isuzu dealers in Orange County combined, and than all of the dealers in the five-county Jacksonville area combined for the 1981 calendar year. Additionally, Zinn sold fewer Isuzu automobiles than all of the Florida dealers selling all makes of competing cars during the year 1981. No further finding can be based upon these statistics since there was no evidence to show how many Isuzu dealers were in the "comparative" areas, when they commenced business, or how many cars they received for sale in order than any meaningful comparison can be made to the one dealer in Dade County in operation for only three months. Additionally, some of the figures introduced by Isuzu relate to a combined Dade/Broward Counties market. Some of the competing manufacturers have more than three dealers in Dade County. No evidence was introduced to show the location of all competing dealers, how long they have been in business in Dade County, where their sales are made, or how many automobiles each dealer has for sale in comparison to the number available for sale by the existing Isuzu dealers in Dade County. When Isuzu established its system of distribution and sale, it determined through its own market studies that it would achieve adequate representation in Dade County by the placement of one dealer each in North, Central and South Dade County. Isuzu admits it has not changed its estimate of the number of dealers supportable in Dade County, and it conducted no market survey before deciding to give Colonial an Isuzu dealership. Since the voluntary restraints were imposed on the importation of Isuzu passenger automobiles, Isuzu has established a formula for allocating the small number of cars being imported among its full-dealer network. That formula has never been reduced to writing and therefore had not been distributed among the Isuzu dealers. Isuzu admits it can exercise discretion as to whether a dealer will receive any vehicles to sell at all. Isuzu introduced extensive evidence to show the location "clusters" of dealers in Dade County. A review of those maps indicates that the identification of where a cluster begins and ends depends only on the imagination of the person drawing the line. Although the cluster concept is generally accepted as a strong factor in determining the placement of dealers, no evidence was introduced to show that the "cluster" where Colonial is located is likely to increase Isuzu's representation within Dade County. For example, extensive evidence was proffered on where Colonial sells Pontiacs; however, Pontiacs per se are not competitive with Isuzu. Likewise, almost all of the dealers located in Colonial's "cluster" sell products which are not competitive with Isuzu. The automobile industry recognizes one year as a fair amount of time for a dealer to be in business before he is evaluated as to performance and market penetration since the business is cyclical and because such a time period allows for a change in model. No Isuzu dealership has been in business in Dade County for one year. When Zinn opened its Isuzu dealership in September, 1981, the facility was not completely constructed. David Zinn determined to utilize the first three months of 1982 as a grand opening promotion. He met with William Abbott, the regional manager for the southeastern region of American Isuzu, and with Mark Darling, the regional sales manager of the southeast regional office of American Isuzu. David Zinn agreed to spend $32,000 in advertising for the promotion, and Abbott and Darling agreed to send him 30 extra cars over his "normal allotment" in exchange for his advertising expenditures. Zinn ran his advertising promotion and spent the agreed upon $32,000. Isuzu gave Zinn a "zero allocation", thereby withholding any cars being delivered to him during the first three months of 1982, and only sent to Zinn the promised 30 bonus cars. Zinn has never refused delivery of an Isuzu car; rather, he has repeatedly requested additional autos which he has not received. According to industry standards, a dealer should have a 60-day supply of cars on hand to adequately serve the manufacturer. Zinn has not had a 60-day supply of cars. Additionally, a dealer's ability to sell is affected by the mix of models. In other words, a dealer who has many cars of the same color with the same number of doors and other features and type of transmission in actuality may only have an inventory of one car as seen through the eyes of a prospective purchaser. Isuzu has established no sales objectives for Zinn or the other existing dealer in Dade, has not evaluated Zinn's performance, and has provided no information comparing Zinn's or competing sales with registrations in Zinn's "market". No evidence was introduced to show where Zinn's Isuzus or where competitive cars were being sold or not being sold. Since no evidence was introduced to show where Isuzu is being represented in Dade County, no conclusion can be drawn as to where Isuzu is not being represented in Dade County. No identifiable plot not yet cultivated has even been suggested. Due to import restrictions, Isuzu has not been able to provide an adequate supply of cars for sale by its existing dealers. There is unquestionably a direct relationship between the availability of a product to be sold in a market area and the determination of the effectiveness of a dealer in such market area. Performance cannot be evaluated where there is no product available to sell. Isuzu's own witnesses admitted that Zinn had not been afforded a reasonable period of time in which to achieve a level of representation of Isuzu in Dade County and that the level of penetration in a market area is controlled by the availability of product.

Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED THAT: A final order be entered denying the application of Colonial Pontiac, Inc., d/b/a Colonial Isuzu for a license to engage in business as a franchised Isuzu dealer in Dade County, Florida. DONE and RECOMMENDED this 5th day of November, 1982, in Leon County, Florida. LINDA M. RIGOT, Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 5th day of November, 1982. COPIES FURNISHED: William E. Sundstrom, Esquire 1020 East Lafayette Street Tallahassee, Florida 32301 Karl J. Leib, Jr., Esquire 201 Alhambra Circle, Suite 1200 Ponce de Leon Plaza Coral Gables, Florida 33134 John D. Calvin, Director Division of Motor Vehicles Department of Highway Safety and Motor Vehicles Neil Kirkman Building Tallahassee, Florida 32301

Florida Laws (2) 120.57320.642
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SUNL GROUP, INC., AND XLILR8ING ENTERPRISES, LLC vs WEST COAST MOTORCYCLES, 07-000431 (2007)
Division of Administrative Hearings, Florida Filed:St. Petersburg, Florida Jan. 23, 2007 Number: 07-000431 Latest Update: May 23, 2007

The Issue The issue is whether the Department of Highway Safety and Motor Vehicles should approve the establishment of a proposed dealership by SunL Group, Inc., in Gulfport, Florida.

Findings Of Fact TRM is in the business of selling motor scooters in Gulfport, which is in Pinellas County. TRM is owned by Thomas R. Malin, III. TRM is currently an authorized dealer of scooters manufactured and/or imported by Carter Brothers and Tank Sports. Those scooters sell in the $2,000 to $3,000 price range. TRM is seeking through this proceeding to become an authorized dealer of scooters imported by SunL.1 Those scooters sell in the $1,450 to $1,995 price range. No evidence was presented at the hearing regarding the location or products sold by West Coast, and there is no evidence that West Coast sells SunL scooters. There are no dealers selling SunL scooters in the Pinellas County area, according to Mr. Malin. West Coast was provided due notice of the date, time, and location of the final hearing in this case. No representative of West Coast appeared at the final hearing.

Recommendation Based upon the foregoing findings of fact and conclusions of law, it is RECOMMENDED that the Department issue a final order dismissing West Coast’s protest and approving TRM’s proposed SunL dealership in Gulfport. DONE AND ENTERED this 12th day of March, 2007, in Tallahassee, Leon County, Florida. S T. KENT WETHERELL, II Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 12th day of March, 2007.

Florida Laws (7) 120.569320.01320.27320.60320.642320.699320.70
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JH GLOBAL SERVICES, INC. vs GOLF CART CONNECTION, INC., 09-004338 (2009)
Division of Administrative Hearings, Florida Filed:Tavares, Florida Aug. 17, 2009 Number: 09-004338 Latest Update: Sep. 15, 2009

Conclusions This matter came before the Department for entry of a Final Order upon submission of an Order Closing File by T. Kent Wetherell, II, an Administrative Law Judge of the Division of Administrative Hearings, a copy of which is attached and incorporated by reference in this order. The Department hereby adopts the Order Closing File as its Final Order in this matter. Said Order Closing file was predicated upon Respondent's notice of withdrawal. Accordingly, it is hereby ORDERED that the Dealer Agreement between JH Global Services, Inc. and Golf Cart Connection, Inc. is terminated. DONE AND ORDERED this I fP: I '1 day of September, 2009, in Tallahassee, Leon County, Florida. CARL A. FORD, Director Division of Motor Vehicles Department of Highway Safety and Motor Vehicles Neil Kirkman Building Tallahassee, Florida 32399 Filed September 15, 2009 3:32 PM Division of Administrative Hearings. Filed with the Clerk of the Division of Motor Vehicles this /ifll day of September, 2009. NOTICE OF APPEAL RIGHTS Judicial review of this order may be had pursuant to section 120.68, Florida Statutes, in the District Court of Appeal for the First District, State of Florida, or in any other district court of appeal of this state in an appellate district where a party resides. In order to initiate such review, one copy of the notice of appeal must be filed with the Department and the other copy of the notice of appeal, together with the filing fee, must be filed with the court within thirty days of the filing date of this order as set out above, pursuant to Rules of Appellate Procedure. CAF:vlg Copies furnished: Les Levy c/o Golf Cart Connection, Inc. 1220 Camp Avenue Mount Dora, Florida 32776 Jane Zhang JH Global Services, Inc. 52 Pelham Davis Circle Greenville, South Carolina 29615 T. Kent Wetherell, II Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 2 Michael J. Alderman, Esquire Assistant General Counsel Department of Highway Safety and Motor Vehicles Neil Kirkman Building, Rm. A-432-02 Tallahassee, Florida 32399-0504 Florida Administrative Law Reports Post Office Box 385 Gainesville, Florida 32602 Nalini Vinayak Dealer License Section 3

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SPORT PRODUCTS, INC., OF FT. LAUDERDALE, D/B/A CUTLER RIDGE HONDA vs. STANMAR, INC., D/B/A HONDA SPORTS, 87-000152 (1987)
Division of Administrative Hearings, Florida Number: 87-000152 Latest Update: Apr. 17, 1987

Findings Of Fact In November 1986, Sport Products received approval of its application with American Honda to establish a Honda motorcycle, all terrain vehicle (ATV), and motor scooter dealership in Fort Lauderdale, Florida. By application dated December 2, 1986, Sport Products applied to the Department for a motor vehicle dealer license to establish its dealership at 1030 West Sunrise Boulevard, Fort Lauderdale, Florida. The application of Sport Products was protested by Stanmar and Honda West, existing dealers in Broward County. Stanmar's dealership is located near the intersection of Copans and Powerline Roads, Pompano Beach, Florida. As sited, Stanmar is located approximately 9.5 miles due north of the proposed dealership. Honda West's dealership is located at the intersection of University Drive and Stirling Road, Davie, Florida. As sited, Honda West is located a straightline distance of approximately 9 miles southwest, but a substantially greater distance over any available route of travel, from the proposed dealership. 1/ Replacement Dealer Or New Dealer Point? The proposed site for the Sport Product dealership, 1030 West Sunrise Boulevard, Fort Lauderdale, Florida, is the same location previously occupied by another Honda dealer, Satnam Enterprises, Inc. (Satnam). Satnam conducted business at that location from 1979 until late December 1985, when it ceased doing business. Satnam's dealership agreements with American Honda were terminated on January 22, 1986. Upon termination of Satnam's dealership, American Honda immediately began its search for a replacement dealer in Fort Lauderdale. Typically, it takes from six months to one year to advertise open dealership points, evaluate applications, and select a replacement dealer. In this case, the replacement dealer, Sport Products, was located and approved within one year. If licensed, Sport Products would resurrect the third Honda motorcycle, all terrain vehicle (ATV) and motor scooter dealership in Broward County since the demise of Satnam. The issue of American Honda's right to establish a third Honda dealership in Broward County was previously addressed in the matter of Satnam Enterprises, Inc., d/b/a Honda of Fort Lauderdale, et al. v. S.G. Silverman, et al., DOAH Case No. 85- 0836. In that case, Satnam and Honda West protested Stan Silverman's (Stanmar's) proposal to establish a third dealership in Broward County at the intersection of Copans and Powerline Roads, Pompano Beach, Florida. The case proceeded to hearing on September 11 and 12, 1985, and the hearing officer entered his recommended order on November 13, 1985. The Department's final order, which adopted the recommended order in toto, was entered December 30, 1985, and found that Broward County was the relevant market area, community or territory to be considered and that American Honda was inadequately represented in that area by the two existing dealers. Subsequently, Stanmar received its dealer's license. 2/ As appears more fully from the findings of fact which address the adequacy of the existing two dealers representation of Honda in Broward County, infra, there have been no changes in circumstance that would warrant a departure from the final order rendered in Satnam Enterprises, Inc., d/b/a Honda of Fort Lauderdale, et al. v. S.G. Silverman, et al., supra. The need for three dealership points having been established in that case, it is concluded that the subject application is for a replacement dealership and not a new dealership point. Adequacy Of Existing Dealer Representation Broward County is the relevant market area, community or territory under consideration in this case. The proof establishes that American Honda is not being adequately represented in Broward County. This is evidenced by the following: As of November 1986, R.L. Polk & Co. reported that Honda's market share in the entire State of Florida was 51.06 percent, while Honda's market share in Broward County was 26.65 percent. Simply stated, this means that whereas throughout the State of Florida 51 of every 100 motorcycles and motorscooters sold was a Honda vehicle, only 27 of every 100 sold in Broward County was a Honda vehicle. 3/ By comparison, at the time of Case No. 85-0836, supra, which concluded that a third dealership in Broward County was needed, Honda's market share for Broward County was 48.07 percent, whereas its state- wide share was 55.73 percent. The R.L. Polk Reports demonstrate that Honda's market share in Broward County has been steadily erroding over the past five years. Currently, there are 52 Honda dealerships in the State of Florida. Since the population for the entire state was estimated in 1986 to be 11,668,638 people, there is currently one Honda dealer for every 224,397 people in the State of Florida. There are now only two Honda dealers in Broward County, which had an estimated population in 1986 of 1,203,210 people. This equates to a dealership per population ration of one dealership for every 603,605 people. With the re-establishment of the third dealership in Broward County, that ratio would be reduced to one dealership for every 401.070 people in Broward County, whereas the state ratio, calculated with the additional dealership, would then be one dealership for every 220,163 people. Clearly, the dealership per population ratio in Broward County far exceeds the state-wide ratio, and would continue to greatly exceed the state- wide ratio even if Sport Products is licensed. Since 1982, there have been an increasing number of Broward County residents who have gone outside Broward County to purchase their Honda vehicles. In contrast, a significantly lesser number of customers from outside Broward County have traveled into Broward County to purchase their vehicles. In 1984, one Honda vehicle was sold in the State of Florida for every 367 people within the state. In Broward County for 1984, that figure was one vehicle for every 503 people. In 1985, whereas one Honda vehicle was sold throughout the state for every 402 people, that figure in Broward County was one Honda vehicle for every 702 people. In 1986, whereas one Honda vehicle was sold throughout the state for every 516 people, that figure in Broward County had plummeted to one Honda vehicle sold for every 1,133 people. If the ratio of sales to population in Broward County had been the same as the state-wide ratio in 1986, 2,332 American Honda units would have been sold. In fact, the two existing Broward County dealers sold 638 units, while non-Broward County dealers sold 424 units to Broward County residents. Consequently, there was an estimated unmet sales potential of 1,270 units for 1986. Even if sales by Stanmar for 1986 are doubled (in essence, providing Stanmar with 14 months of sales to account for the fact that it started in business in June 1986), the unmet sales potential in Broward County still exceeds 1,000 units, which is more than sufficient to support the proposed dealership and still leave substantial room for sales increases by the two existing dealers. The foregoing sales projection figures are based upon emperical data showing the sales per population of Broward County residents, and is therefore intrinsically credible. Further, such projections have been validated. Hence, the evidence establishes not only the reasonableness of the projections calculated by Honda's expert, Dr. Ford, but also the inadequacy of current representation. The evidence establishing inadequacy of representation was particularly acute with respect to American Honda's motor scooter product line. Whereas in the state and throughout the nation more than 7 out of every 10 motor scooters sold is a Honda vehicle, in Broward County, less than 3 out of every 10 motor scooters sold is a Honda vehicle. This situation is particularly significant in that the motor scooter product line, which was introduced by American Honda in 1983, is very important to American Honda, since it is intended to be marketed to persons outside the traditional motorcycle market. Through such marketing, American Honda should be able to introduce a new segment of the population to its product line, and thereby increase its consumer base. Broward County is a good motor scooter market, as it is blessed with year-round favorable weather, many beach communities, and an emphasis on recreation. In addition, in the Fort Lauderdale area, there are a number of low income households. Low income areas are fertile markets for the motor scooter product line. Notwithstanding these factors favoring the sale of the Honda motor scooter product line, the existing Broward County dealers are either unwilling or unable to adequately represent that product line in this community, particularly in the Fort Lauderdale area. For example, neither of the protesting dealers participated significantly in a recent promotion conducted by American Honda with respect to the lower priced model motor scooter, notwithstanding the fact that a representative from American Honda visited both dealers to explain the program and its benefits, and to recommend that the dealers participate. It appears that Honda West considers itself too far removed from what it considers the primary market for the motor scooter, and Stanmar considers itself unable to compete with the local Yamaha motor scooter dealer. Further, the evidence established that the motor scooter purchaser is more likely to be a localized shopper, such that the physical separation of the two protesting dealers from the greater Fort Lauderdale area is a significant factor contributing to the inability of those dealers adequately to represent American Honda's motor scooter product line. Failure of a dealer to adequately represent a particular product line is tantamount to inadequate representation of the manufacturer or distributor. The population in Broward County has shown tremendous growth, as has Florida, and is projected to continue that growth through at least the year 2020. Significantly, the east central sector of Broward County, in which the proposed dealership would be established, is the most densely populated sector of Broward County, and is likewise projected to increase its population through the year 2020. Substantial growth is also projected for the southwest and southeast sectors, in which Honda West's dealership is located, and in the northwest and northeast sectors, in which Stanmar's dealership is located. Accordingly, it is anticipated that there will be an increasing need for the third Broward County dealership in the future. Broward County is an economically viable market, ranking second among all counties in such things as total and per capita Effective Buying Income, Buying Power Index, and total per capita Retail Sales. Additionally, Broward County has shown substantial growth in these figures through 1986. These are the economic indices typically used to gauge the vitality of a market. The protesting dealers did not dispute the deficient market share for Honda products in Broward County, but attempted to rationalize the disparity by citing to a number of factors. One such factor was certain adverse publicity associated with the previous Fort Lauderdale Honda dealership. Such evidence was, however, unpersuasive. First, protestants offered no proof that a nexus existed between the previous dealer's reputation and the inadequate market share. Second, the proof established that the previous dealer was a Honda- Yamaha-Suzuki dealer and, consequently, any adverse impact would have afflicted those product lines also. Other factors cited by the protesting dealers in an attempt to explain or rationalize Honda's poor market penetration in Broward County included the timing of product releases by the manufacturer, pricing policies, the quantity and models available for dealers to sell, insurance rates, the lack of off-road riding areas, and safety concerns regarding the 3-wheeled ATVs. Such factors are, however, unpersuasive in explaining Honda's lack of penetration into the Broward County market. To the extent such factors existed, they would have affected either all brand vehicles equally, or at least all Honda dealers equally if the factor was peculiar to a specific Honda product. Other evidence presented by the protesting dealers, such as Mr. Silverman's contention that an American Honda representative told him that the Fort Lauderdale dealership would not be replaced, is not only inherently improbable, but was rebutted by credible proof. That proof established that American Honda consistently advised Mr. Silverman that the Fort Lauderdale dealership would be re-established, and that Mr. Silverman's only concern was that it not be located any closer to his dealership than previously sited. Finally, protestants suggest that Honda's poor performance in the Broward market in 1986 can be explained by the fact that following Satnam's closure in December 1985, there was only one Honda dealer, Honda West, for Broward County until Stanmar opened in June 1986. While such dealer turnover and lack of representation could have affected Honda's performance in 1986, it does nothing to explain Honda's consistently poor market penetration in the preceding years. Consequently, protestants' assertion does not detract from the conclusion that American Honda is not adequately represented in Broward County, and more particularly in Fort Lauderdale. "Market share" and "sales penetration" are reliable measures of dealer representation. "Market share" measures a manufacturer's percentage of a given market based upon registration data obtained by R.L. Polk from the various states, and recorded monthly on a county-by-county, state-by-state, and national basis. All terrain vehicle sales are not reflected in R.L. Polk data for the State of Florida since they are not used on the roads and highways and therefore are not registered in the state. "Sales penetration" measures actual unit sales compared with total sales potential using manufacturer warranty data, whether or not the vehicle is registered.

Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED: That the Department of Highway Safety and Motor Vehicles process Sport Products' application for a motor vehicle dealer license, and that the protests of Stanmar, Inc. and International Cycle, Inc. be dismissed. DONE AND ORDERED this 17th day of April, 1987, in Tallahassee, Florida. WILLIAM J. KENDRICK Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 17th day of April, 1987.

Florida Laws (1) 320.642
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POWER GROUP INTERNATIONAL, LLC AND JAY STEWART, D/B/A A PLUS CARTS AND PARTS vs GRANDPA'S CYCLE CENTER, INC., 10-006949 (2010)
Division of Administrative Hearings, Florida Filed:Tallahassee, Florida Aug. 03, 2010 Number: 10-006949 Latest Update: Oct. 01, 2010

Conclusions This matter came before the Department for entry of a Final Order upon submission of an Order Closing File by William F. Quattlebaum, Administrative Law Judge of the Division of Administrative Hearings, pursuant to Petitioner’s Notice of Withdrawal of Intent to Establish Dealership, a copy of which is attached and incorporated by reference in this order. The Department hereby adopts the Order Closing File as its Final Order in this matter. Accordingly, it is hereby ORDERED that this case is CLOSED and no license will be issued to Power Group International LLC and Jay Stewart d/b/a A Plus Carts and Parts to sell the line-make manufactured by Guangzhou Panyu Huanan Motors Group Co., Ltd. (GUNG) at 16100 San Carlos Boulevard, Fort Myers (Lee County) Florida 33908. Filed October 1, 2010 4:41 PM Division of Administrative Hearings. DONE AND ORDERED this _/ Fy of October, 2010, in Tallahassee, Leon County, Florida. CARL A. FORD, Direct Division of Motor Vehicles Department of Highway Safety and Motor Vehicles Neil Kirkman Building Tallahassee, Florida 32399 Filed with the Clerk of the Division of Motor Vehicles this_/4t_ day of October, 2010. NOTICE OF APPEAL RIGHTS Judicial review of this order may be had pursuant to section 120.68, Florida Statutes, in the District Court of Appeal for the First District, State of Florida, or in any other district court of appeal of this state in an appellate district where a party resides. In order to initiate such review, one copy of the notice of appeal must be filed with the Department and the other copy of the notice of appeal, together with the filing fee, must be filed with the court within thirty days of the filing date of this order as set out above, pursuant to Rules of Appellate Procedure. CAF/vlg Copies furnished: Dean Bunch, Esquire Nelson Mullins Riley & Scarborough LLP 3600 Maclay Boulevard South, Suite 202 Tallahassee, Florida 32309 Jay Stewart A Plus Carts and Parts 16100 San Carlos Boulevard Fort Myers, Florida 33908 Lynda Stewart Grandpa’s Cycle Center, Inc. 3596 Fowler Street Fort Myers, Florida 33901 William F. Quattlebaum Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 Nalini Vinayak Dealer License Administrator

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KAWASAKI MOTOR CORPORATION U.S.A. AND ACTION JET SPORTS, INC. vs GRANNY`S MOTORSPORTS, 99-001766 (1999)
Division of Administrative Hearings, Florida Filed:Sarasota, Florida Apr. 15, 1999 Number: 99-001766 Latest Update: Jun. 05, 2000

The Issue Whether the application of Kawasaki Motors Corporation USA (Kawasaki Motors) to establish an additional franchised dealership for the sale of Kawasaki motorcycles to be located at Action Jet Sports, Inc. (Action Jet), 2705 1st Street, Bradenton, Manatee County, Florida, should be granted.

Findings Of Fact Based on the evidence presented at the hearing and the record as a whole, the following findings of fact are made: Petitioner Kawasaki Motors, is a licensed distributor of motor vehicles in Florida and is authorized to sell motor vehicles to its dealers in Florida. Petitioner Action Jet is a licensed motor vehicle dealer in Florida and is located at 2705 1st Street, Bradenton, Florida. Respondent Granny's Motorsports is a licensed motor vehicle dealer in Florida and an existing Kawasaki dealer located at 2001 University Parkway, Sarasota, Florida. In 1991, Granny's Motorsports was formed from the purchase of an existing dealership known as "Cycles N' Stuff" located on 17th Street in Sarasota, Florida. However, with the approval of Kawasaki Motors, Granny's Motorsports relocated to its present location in July 1997. Granny's Motorsports sold the full product line of licensed motor vehicles for Kawasaki, Yamaha, and Suzuki at its 17th Street location and currently sells the full product line of these manufacturers. Petitioner Kawasaki Motors proposes to allow the establishment of Action Jet as a dealership for the sale of Kawasaki motorcycles. Granny's Motorsports has standing to protest the proposed establishment of Action Jet as a Kawasaki motorcycle dealership pursuant to Section 320.642(3), Florida Statutes. This proceeding is governed by Section 320.642, Florida Statutes, which sets forth the conditions for establishment of an additional dealer if a protest is filed. According to that provision, Kawasaki Motors will be allowed to establish a new dealership if the existing franchised dealer is not providing adequate representation of Kawasaki vehicles in the subject community or territory. While that provision lists factors which may be considered in making this determination, the statute does not define "community or territory" or "adequate representation." A determination of what constitutes the appropriate "community or territory" is a question of fact that must be made on a case-by-case basis. To determine whether a market is so connected as to form a community or territory, there must be significant cross- sell between the existing dealer in Sarasota/Bradenton and the fringe dealers, those in the surrounding area, to consider if they are, in fact, acting as one market. The consumer data used for analysis of sales in the motorcycle industry is assembled and provided by the Motorcycle Industry Council (MIC). Although MIC data contains information for all motorcycle products for the purposes of establishing adequacy of representation under Section 320.642, Florida Statutes, only information relative to on-road motorcycles and dual-purpose motorcycle sales has been considered. Six Kawasaki dealers in Pinellas, Hillsborough, Polk, and Charlotte counties occupy the area surrounding the Manatee and Sarasota county area. Consumer behavior data indicates that very few of the Kawasaki sales made by these six dealers are made to customers residing in Sarasota and Manatee counties. Rather, the vast majority of the sales into Sarasota and Manatee counties is made by Granny's Motorsports. After excluding these fringe dealers from the potential community or territory, it was necessary to determine whether there was sufficient cross-sell within Sarasota County and Manatee County to determine whether these two counties are connected from a Kawasaki marketing standpoint. However, because the proposed dealer in Bradenton is not in place yet and there is only one existing dealer in the area, there is no cross-sell and this analysis is not possible. Analysis of consumer behavior and cross-sell patterns demonstrate that, for Kawasaki motorcycles, Sarasota and Manatee counties are a single market and comprise the Bradenton/Sarasota community or territory for the purpose of analysis under Section 320.642, Florida Statutes. A primary market area (PMA) or identifiable plot, in which an existing or proposed resident dealer has or should have a competitive advantage over same line-make dealers by virtue of the resident dealer's location. Each dealer, including Granny's Motorsports, is assigned a primary market area of a radius of five miles around his dealership. However, this distance was considered to be too small to constitute a reasonable area for market analysis. The starting point for establishing the PMAs for Granny's Motorsports and the proposed Bradenton dealership, Petitioner Action Jet, was the assignment of zip codes within the Bradenton/Sarasota community or territory. Utilizing this process, generally, zip code areas closest to Granny's Motorsports were assigned to that dealer and those zip code areas closest to the proposed Bradenton dealership, Action Jet, were assigned to that dealership. However, in certain instances, although the center of a zip code was closer to one dealer, the roads and traffic patterns suggested that a zip code should be assigned to a different dealer's PMA. This situation was present in this case and, accordingly, several zip codes were assigned on a basis other than distance. The Sarasota PMA is the area in which Granny's Motorsports is located and in which it has a geographic advantage. Moreover, Granny's Motorsports will continue to have that advantage even after the establishment of Action Jet. The Bradenton PMA is the area in which the proposed Action Jet dealership would have an advantage upon its establishment. In the Bradenton/Sarasota community or territory, there are eleven competing line-make motorcycle dealers. To determine whether the existing Kawasaki dealers are providing "adequate representation" in the Bradenton/Sarasota community or territory, the factors enumerated in Section 320.642, Florida Statutes, may be considered. The most common measure for evaluating the performance of a dealer network is analysis of market penetration data. Market penetration represents the competitive efforts of all the dealers, using data concerning the sale of all brands to comprise a single indicator also called market share. This is the single most objective and accurate measure of market activity. Market share represents the sales of a manufacturer, such as Kawasaki, in proportion to the business available. To develop a standard to measure adequacy of representation for the Bradenton PMA, the Sarasota PMA, or the community or territory, the first step is to attempt to locate an area near the area being studied, but which does not overlap with that area where Kawasaki is adequately represented. After adjusting for product popularity differences, the Polk County standard offers the most appropriate expected market penetration against which to judge the performance of Kawasaki in the Bradenton/Sarasota community or territory and in the Bradenton and Sarasota PMAs which make up that community or territory. In this case, Polk County, which is adjacent to the Bradenton/Sarasota community or territory, appears to be adequately represented because it exceeds the Florida average for Kawasaki. The Florida average is a conservative standard because it takes into consideration Kawasaki's performance in areas with adequate, inadequate, and no representation. Polk County is also an appropriate starting point for determining a reasonably expected market penetration because it represents actual experience of the Kawasaki penetration which is being obtained in an adjacent area. However, when comparing one market to another, adjustments must be made for consumer preferences which might differ from one market to another. This is important because consumer preferences among different types of motorcycles, independent of brand, are beyond the control of the dealers. Market segmentation adjusts for consumer preferences which differ between markets. Sales data by segment reflects actual consumer purchases, implicitly accounting for the effects of all demographic characteristics including age, income, education, size-class preferences, and product popularity on vehicle purchase behavior. In this proceeding, only on-road motorcycle and dual- purpose motorcycles are considered. With regard to these categories, the MIC classifies motorcycles into five segments. These segments list models which are comparable to one another and are presumably, competing for the same customers. By measuring Kawasaki's penetration in each segment achieved in Polk County, compared to the opportunity available in each segment in the Bradenton/Sarasota community or territory, an appropriate standard is established for what the Bradenton/Sarasota community or territory should expect if it were receiving adequate representation. Using the Polk County average and adjusting for local segment popularity, the reasonably expected market share for Kawasaki on-road and dual-purpose motorcycles in the Bradenton/Sarasota community or territory was 16.47 percent in 1996; 13.69 percent in 1997; 16.70 percent in 1998; and 16.21 percent for the first nine months of 1999. Alternatively, using the more conservative Florida average as a standard and adjusting for product popularity, Kawasaki in the Bradenton/Sarasota community or territory would be expected to achieve 16.24 percent in 1996; 13.49 percent in 1997; 13.94 percent in 1998; and 12.89 percent for the first nine months of 1999. The reasonably expected segment penetration for Polk County, adjusted for local segment popularity, is accepted as the appropriate standard against which to judge the performance of the Bradenton/Sarasota community or territory. After making the market segment adjustments, Kawasaki Motors' market penetration in the Bradenton/Sarasota community or territory was below reasonably expected levels for the period 1996 through the last nine months of 1999. This is the case whether using the Polk County average or the Florida average. The actual penetration of Kawasaki in the Bradenton/Sarasota community or territory was 13.69 percent in 1996; 10.37 percent in 1997; 9.12 percent in 1998; and 6.81 percent for the first nine months in 1999. Using the Polk County average standard, from 1996 through the first nine months of 1999, the Bradenton/Sarasota community or territory's performance declined from 83 percent of expected in 1996 to only 42 percent of expected in 1999. By comparison, utilizing the Florida average as a standard, the Bradenton/Sarasota' performance went from 84.3 percent of expected in 1996 to only 52.9 percent of expected in 1999. The net shortfall in units, or the number of on-road and/or dual-purpose motorcycles, which would be required to be sold in order to bring Kawasaki in the Bradenton/Sarasota community or territory up to the expected performance, was 12 units in 1996, 16 units in 1997, 44 units in 1998, and 51 units in 1999. Using the more conservative Florida standard, the net shortfall increased from 11 in 1996 to 33 in 1999. Similar patterns emerge when Kawasaki's penetration in the Bradenton PMA and the Sarasota PMA is compared with expected penetration based upon the Polk County and Florida standards. Utilizing the segment analysis, Kawasaki's actual performance compared to expected in the Bradenton PMA has fallen from 85.7 percent of expected in 1996 to 53.8 percent of expected in the first nine months of 1999. A temporary effect of the relocation of Granny's Motorsports north to its new location, which opened in July 1997, can be seen as the actual penetration reached 100 percent of expected in 1997. However, since that time, the performance of the Bradenton PMA has continued to fall to a point substantially lower than it was prior to the relocation. Similar results are seen when the Bradenton PMA's performance is compared to the Florida average. Kawasaki's representation in the Sarasota PMA, where Granny's Motorsports is located, also has fallen consistently for the past four years. Using the Polk County standard, Granny's Motorsports went from achieving 82 percent of its expected penetration in 1996 to 35.9 percent in 1999. By comparison, using the Florida standard, the Sarasota PMA went from achieving 83.7 percent of its expected penetration in 1996 to 46 percent in 1999. The steady decline over time demonstrates that Granny's Motorsports, the only dealer in the Bradenton/Sarasota community or territory, may not be able to adequately represent Kawasaki in its own PMA because it is attempting to cover an area which is too large for it to adequately serve. In terms of reasonably expected market penetration, the Bradenton/Sarasota community or territory, as well as the Bradenton PMA and the Sarasota PMA, are not receiving adequate representation for Kawasaki. Factors contributing to Kawasaki's receiving inadequate representation in the Bradenton/Sarasota community or territory and in the Bradenton PMA and the Sarasota PMA may be the number and location of the dealers. However, a determination that the establishment of a second dealership in the Bradenton/Sarasota community or territory is warranted must be based on the economic and marketing conditions pertinent to dealers competing in the community or territory, including anticipated changes. The current and future demographic factors in the Bradenton/Sarasota community or territory indicate that the addition of a Kawasaki Motors dealer is justified in terms of economic or marketing conditions pertinent to dealers competing in the community or territory. The Bradenton/Sarasota community or territory has experienced considerable economic and market growth. Since 1980, the community/territory has had a significant increase in the driving age population and households. This trend is predicted to continue through 2003. An additional indication of the economic growth is the increase in the annual employment. In Sarasota and Manatee Counties, the annual average employment has increased by approximately 52,000 jobs between 1990 and 1999. The Bradenton PMA and the Sarasota PMA have also experienced substantial growth with such trends predicted to continue through 2003. Demographic factors in both the Bradenton and Sarasota PMAs are conducive to selling new motorcycles. They both contain a reasonable mix of upper and middle income areas. The median household income of the new motorcycle buyer falls into the range of around $50,000. In terms of the growth of the total motorcycle industry, as reflected by the on-road and dual-purpose segment, there has been a substantial increase in the amount of the total industry sales, for which Granny's Motorsports can compete, available since 1996. This increase is present in both the Bradenton PMA and the Sarasota PMA. In light of the growth in the total available motorcycle market, measured by total industry sales, coupled with the demographic and employment characteristics, the inadequacy of representation is not due to local demographic or economic factors or lack of growth in the motorcycle industry. Rather, the inadequacy of representation is likely due the inability of one dealer to keep pace with the growth in the market. The distance between Granny's Motorsports and the proposed Action Jet location is 7.8 miles and 19 minutes and 8 seconds driving time. From a geographical standpoint, the Bradenton/Sarasota community or territory is large, approximately 40 to 50 miles from north to south. Despite this large area and the increase in the size of the motorcycle market, the Bradenton/Sarasota community or territory is served by only one Kawasaki dealer. Establishment of an additional Kawasaki dealer is justified based on the size of the market in the Bradenton/Sarasota community or territory, measured in comparison to Polk County and the number of Kawasaki dealers and competitors there. For example, in the Bradenton/Sarasota community or territory, where Kawasaki is receiving inadequate representation, Kawasaki has 9.1 percent of the franchises. In Polk County, where Kawasaki is receiving adequate representation, Kawasaki has 20 percent of the franchises. In order to have the same share of the franchises in Bradenton/Sarasota which it has in Polk County, Kawasaki would be required to have 2.5 dealerships. Therefore, in addition to the one dealership present in the Bradenton/Sarasota community or territory at this time, Granny's Motorsports, one additional Kawasaki dealer is needed. The inadequate market penetration for Kawasaki demonstrates that there is insufficient inter-brand competition, or competition between dealers selling different brands. Moreover, there is no intra-brand competition between Kawasaki dealers because none of the other Kawasaki dealers in the surrounding area sell meaningful numbers of units into the Bradenton/Sarasota community or territory. The proposed location in Bradenton has a concentration of motorcycle purchasers which justifies the placement of a Kawasaki dealership in Manatee County. The establishment of the Bradenton dealership will likely benefit consumers and the public interest. It will provide the growing population of the Bradenton/Sarasota community or territory with a more convenient place to shop for Kawasakis and more convenient Kawasaki service. The probable impact of the proposed additional dealership on the existing Kawasaki dealer can be determined by examining the gross sales loss in the Bradenton/Sarasota community or territory. The gross sales loss is the number of on-road and/or dual-purpose motorcycles sold in the subject community or territory by the competitive dealerships in that area. The gross sales loss in the Bradenton/Sarasota community or territory was 48 units for 1998. In addition to this opportunity being available to the existing Kawasaki dealer, there were 9 units of in-sell or Kawasaki units sold by dealers outside the Manatee and Sarasota Counties to local customers. Thus, there is a total lost opportunity of 57 units for which Granny's Motorsports can compete. If the new proposed dealer is established, there will be no necessary negative impact on Granny's Motorsports because there is opportunity available to be captured from inter-brand competitors. When a dealer is added to a market with inadequate representation, typically, competition is enhanced and the market for the product expands over what it otherwise would have been. The addition of Action Jet will have a positive impact on consumers. It will provide additional competition and a much more convenient shopping alternative. The addition of a dealership will likely benefit Kawasaki Motors in terms of additional sales of motorcycles and market share. Granny's Motorsports has made a substantial investment in its current and previous facilities. In 1991, when Granny's Motorsports purchased an existing dealership located on 17th Street in Sarasota, extensive renovations were performed, the equipment was updated, and the staff was increased and trained. In 1996, Granny's Motorsports purchased the property at which its present dealership is located. After applying for and receiving the approval of Kawasaki Motors, in July 1997, Granny's Motorsports moved into the new facility located on University Parkway in Sarasota. However, the University Parkway facility, which had previously been a boat manufacturing plant, required extensive renovations before Granny's Motorsports could occupy the facility. Granny's Motorsports' total investment in the new facility was about $1,000,000. Although Kawasaki Motors approved the relocation of Granny's Motorsports, it never suggested or recommended the relocation. Therefore, the substantial costs associated with and resulting from Granny's Motorsports' relocation were not incurred to perform obligations under the dealer agreement between Kawasaki Motors and Granny's Motorsports. Rather, the investment and expenditures made by Granny's Motorsports were for the business as a whole, which includes the sale of the full product line of not only Kawasaki, but also of Yamaha and Suzuki. Granny's Motorsports' current location on University Parkway is near the Sarasota and Manatee County line and is centrally located between Sarasota and Bradenton and in the middle of two main clusters of population for the Bradenton/Sarasota community or territory. However, the market share deficiency suffered by Kawasaki demonstrates that the facility is not in a location from which Granny's Motorsports has been able to adequately represent Kawasaki in the community or territory and, in specifically in the Bradenton PMA. By allowing Granny's Motorsports to relocate to the location it requested, Kawasaki Motors allowed Granny's Motorsports the opportunity to take advantage of the growing market within Manatee and Sarasota counties in the manner it requested to do so. Granny's Motorsports has been in the University Parkway facility for over two years, but Kawasaki's market share continues well below an acceptable minimal standard and is declining. Granny's Motorsports is an adequate facility and its owner and manager are doing what they believe is the best they can do to maximize their efforts to sell Kawasaki Motors product. Notwithstanding these efforts, Granny's Motorsports was not been able to effectively service the entire Bradenton/Sarasota community or territory. Prior to 1978, a Kawasaki dealership had been established in Bradenton. That dealership had coexisted with the dealership in Sarasota until it went out of business in 1993 because of an absentee owner and management and operation problems. In fact, when Granny's Motorsports brought its dealership in Sarasota in 1991, the Kawasaki dealership was operating in Bradenton. Kawasaki Motors believes that by replacing the dealership in Bradenton which had been very successful for many years, it will be able to better service the Bradenton/Sarasota community or territory. Kawasaki Motors' low market share compared to expected in the Bradenton/Sarasota community or territory indicates that Kawasaki's one dealer network is currently unable to offer adequate inter-brand competition in the Bradenton/Sarasota community or territory. The failure of the efforts of the existing Kawasaki dealer to reach the minimum expected market share in the Bradenton/Sarasota community or territory demonstrates that the existing Kawasaki dealer is not nearly capturing all reasonably available sales. There is significant untapped market opportunity available in the Bradenton/Sarasota community or territory. This is due, at least in part, to the size of the market and a single dealer's inability to serve the entire market. The market opportunity is so great that Action Jet, the proposed dealer to be established in the Bradenton PMA, likely will not be able to capture all of the increased sales from opportunity currently lost to inter-brand competitors. Therefore, Granny's Motorsports will have the opportunity to increase its current sales level. Having a convenient dealer in the Bradenton/Sarasota community or territory can stimulate new sales interest in Kawasaki across the market. If existing Kawasaki dealers respond aggressively and offer competitive value, they will capture some of the increased sales generated by the presence of the additional dealer in the Bradenton/Sarasota community or territory.

Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Highway Safety and Motor Vehicles enter a final order approving the establishment of Kawasaki Motors' dealership at Action Jet, 2705 1st Street, Bradenton, Florida. DONE AND ENTERED this 8th day of May, 2000, in Tallahassee, Leon County, Florida. CAROLYN S. HOLIFIELD Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 8th day of May, 2000. COPIES FURNISHED: Dean Bunch, Esquire Kelly A. O'Keefe, Esquire Sutherland, Asbill and Brennan, L.L.P. 2282 Killearn Center Boulevard Tallahassee, Florida 32308 Charles D. Bailey, III, Esquire Bowman, George, Scheb, Toale and Robinson 22 South Tuttle Avenue, Suite 3 Sarasota, Florida 34237 Andrew H. Cohen, Esquire Hankin, Perrson, Davis & Darnell 2033 Main Street, Suite 400 Sarasota, Florida 34237 Charles J. Brantley, Director Department of Highway Safety and Motor Vehicles Neil Kirkman Building 2900 Apalachee Parkway Tallahassee, Florida 32399-0500 Michael J. Alderman, Esquire Department of Highway Safety and Motor Vehicles Neil Kirkman Building, Room A432 2900 Apalachee Parkway Tallahassee, Florida 32399-0500

Florida Laws (3) 120.569120.57320.642
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BMS MOTORSPORTS, INC., AND SCOOTER DEPOT, LLC vs TGT COMPANIES, INC., D/B/A EXTREME MOTOR SALES, 09-004098 (2009)
Division of Administrative Hearings, Florida Filed:Tallahassee, Florida Jul. 31, 2009 Number: 09-004098 Latest Update: Dec. 17, 2009

Conclusions This matter came before the Department for entry of a Final Order upon submission of an Order Relinquishing Jurisdiction and Closing File by J. D. Parrish, Administrative Law Judge of the Division of Administrative Hearings, pursuant to non-compliance to the requirements set out in the Order to Show Cause-for both parties to file responses no later than 5:00 p.m.on December 03, 2009 as to why this matter should not be dismissed. The Department hereby adopts the Order Relinquishing Jurisdiction and Closing File as its Final Order in this matter. Accordingly, it is hereby ORDERED that this case is CLOSED and no license will be issued to BMS Motorsports, Inc. and Scooter Depot, LLC to sell motorcycles manufactured by Taizhou Zhongneng Motorcycle Co. Ltd. (ZHNG) at 3651 Alafaya Trail, #102, Oviedo (Seminole County), Florida 32765. Filed December 17, 2009 8:29 AM Division of Administrative Hearings. DONE AND ORDERED this/ 5"i.f December, 2009, in Tallahassee, Leon County, Florida. A Ford, Director Division of Motor Vehicles Department of Highway Safety and Motor Vehicles Neil Kirkman Building Tallahassee, Florida 32399 Divisu:,hf Filed with the Clerk of the Motor Vehicles . not-.. u this day of December, 2009. t :!ini Vinayak, Deelef' Admlnil1nllor NOTICE OF APPEAL RIGHTS Judicial review of this order may be had pursuant to section 120.68, Florida Statutes, in the District Court of Appeal for the First District, State of Florida, or in any other district court of appeal of this state in an appellate district where a party resides. In order to initiate such review, one copy of the notice of appeal must be filed with the Department and the other copy of the notice of appeal, together with the filing fee, must be filed with the court within thirty days of the filing date of this order as set out above, pursuant to Rules of Appellate Procedure. CAF/vlg Copies furnished: Patrick Kim BMS Motorsports, Inc. 1201 Jellick Avenue City of Industry, California 91748 Rob Loisel Scooter Depot, LLC 250 East Lake Mary Boulevard Sanford, Florida 32773 Tina Wilson TGT Companies, Inc. d/b/a Extreme Motor Sales 1918 South Orange Blossom Trail Apopka, Florida 32703 J. D. Parrish Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 Michael J. Alderman, Esquire Department of Highway Safety and Motor Vehicles Neil Kirkman Building 2900 Apalachee Parkway, Room A432 Tallahassee, Florida 32399 Nalini Vinayak Dealer License Administrator Florida Administrative Law Reports Post Office Box 385 Gainesville, Florida 32602

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