Q in 1999 mercedes- benz usa assumes a new pricing policy

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Q. In 1999 Mercedes- Benz USA assumes a new pricing policy, which it called NFP (negotiation- free process) that sought to eliminate price negotiations between customers and new-car dealers. An article in The New York Times (August 29, 1999) reported that a New Jersey Mercedes dealer who had his franchise revoked is suing Mercedes, claiming that he was fired for refusing to go along with Mercedes' no-haggling pricing policy. New Jersey dealer said his attention the NFP policy was illegal. Why might Mercedes' NFP policy be illegal? Can you offer another reason why the New Jersey dealer might not have wished to follow a no-haggling policy?

Reference no: EM13354507

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