It was more protection for local dealers, to avoid the manufacturer coming in to a market that the dealer had developed and undercutting them.
Yes, but that's the first layer. The second layer is "Why would we care about undercutting local dealers"? And there are good reasons to avoid undercutting, not just greed, as is often the case.
Yes, but that's the first layer. The second layer is "Why would we care about undercutting local dealers"? And there are good reasons to avoid undercutting, not just greed, as is often the case.