Stephen Becker Automobile group Inc files suit against Shelby American Inc

[cycleguy55]

Originally Posted by REAL 1

Law School does not prepare you for the real practice of law. That is a whole new education and fraught with peril.

It is rare that a formal education properly prepares anyone for the vagaries of the real world, though the '0 to 60' in law is probably a lot faster once you've passed the bar than it is for entering many other fields of endeavour.

[twobjshelbys]

From the Shelby web site there are 11 authorized dealers in the US. Many of them may not even be active any more. I doubt that <10 is enough to make a class in the sense that most think of.

Good luck Stephen!

[Al G]

I'm not a lawyer but I just read the complaint and a few things struck me.

Mr. Becker claims he earns 33% profit on each vehicle he sells. I seem to remember a thread a few years ago where he and other dealers implied their profit margin was very slim.

Part of the complaint references Nevada law regarding the sale of "vehicles". I wonder if that even applies since the SAI documents specifically and consistently call their product "Component Vehicles". I also wonder if this is going to open a can of worms regarding the sale of completed vehicles by either SAI or dealers.

The complaint identifies SAI's Director of Sales by name. Unfortunately they misspelled his name. How difficult is it to get that right?

Mr. Becker's current dealer agreement expires in July of this year. Any bets on renewing it?

This should be interesting as it plays out.

[mikeinatlanta]

What's with all the fascination over class action? SAI is a small company and the pockets aren't very deep. I would think the goal would be to get in early and alone in hopes of settlement before they go belly up. What am I missing (besides any legal training)?

[RodKnock]

Originally Posted by mikeinatlanta

What's with all the fascination over class action? SAI is a small company and the pockets aren't very deep. I would think the goal would be to get in early and alone in hopes of settlement before they go belly up. What am I missing (besides any legal training)?

It's about what it's always about. Time and money. But in this case, it's a waste of time and money.

[REAL 1]

Originally Posted by Al G

I'm not a lawyer but I just read the complaint and a few things struck me.

Mr. Becker claims he earns 33% profit on each vehicle he sells. I seem to remember a thread a few years ago where he and other dealers implied their profit margin was very slim.

Part of the complaint references Nevada law regarding the sale of "vehicles". I wonder if that even applies since the SAI documents specifically and consistently call their product "Component Vehicles". I also wonder if this is going to open a can of worms regarding the sale of completed vehicles by either SAI or dealers.

The complaint identifies SAI's Director of Sales by name. Unfortunately they misspelled his name. How difficult is it to get that right?

Mr. Becker's current dealer agreement expires in July of this year. Any bets on renewing it?

This should be interesting as it plays out.

Very astute points.

[stephen_becker]

Stephen Becker Automotive Files Suit Against Shelby American | car News @ Top Speed

[rodneym]

Eh, Mr. Becker, something tells me that SAI will send a '50th' car your way and you'll be able to sue another day.

[NewYorkGuy]

"... The dealership also claims Shelby sold at least one car, with a fully installed engine, directly to a member of the public for about $500,000..."

nice profit! shady but it's the Shelby way.

$180K Kirkham alum roller
$50K drivetrain
$20K Shelby badges & VIN

$250K into personal bank accounts

[bret a ewing]

If allumy cars keep rising in price I wouldnt be suprised to see another manufacturer get into the fray.

[RodKnock]

Originally Posted by NewYorkGuy

"... The dealership also claims Shelby sold at least one car, with a fully installed engine, directly to a member of the public for about $500,000..."

nice profit! shady but it's the Shelby way.

$180K Kirkham alum roller
$50K drivetrain
$20K Shelby badges & VIN

$250K into personal bank accounts

Nothing shady about it. It's called capitalism. The dealer likely doesn't make a huge buck. And SAI is a publicly traded corporation, any profits go to the company's shareholders. I don't see the stock rising above $0.16 or whatever someone quoted recently.

And yes, brand names, whether pharma drugs, watches, or even PET FOOD, will always bring a premium. Wow, breaking news.

[Cashburn]

Originally Posted by bret a ewing

If allumy cars keep rising in price I wouldnt be suprised to see another manufacturer get into the fray.

Ohhh don't get that started again

[RodKnock]

What drives me nuts is when people complain about what profits are made about any item.

Recently, people were complaining on one of the Porsche forums about a dealer asking $1,000,000+ for a new 918 Spyder or whatever model it was. A customer backed out of the order at MSRP and the Porsche dealer marked it up a few hundred grand.

Some people were outraged that the dealer marked it up after a buyer backed out of their deal. The car sold.

Moral of the story. Go take Economics 101 again.

[RodKnock]

Originally Posted by Cashburn

Ohhh don't get that started again

That was fun, wasn't it? The good old days.

[NewYorkGuy]

So what happened to previous lawsuit? Did Mr Becker receive his cars in 2012 ?

[REAL 1]

Originally Posted by RodKnock

What drives me nuts is when people complain about what profits are made about any item.

Recently, people were complaining on one of the Porsche forums about a dealer asking $1,000,000+ for a new 918 Spyder or whatever model it was. A customer backed out of the order at MSRP and the Porsche dealer marked it up a few hundred grand.

Some people were outraged that the dealer marked it up after a buyer backed out of their deal. The car sold.

Moral of the story. Go take Economics 101 again.

Well I feel better now. At least there is another business that people resent making a huge profit besides attaorneys.

Forgot about car salsmen.

[NewYorkGuy]

Originally Posted by REAL 1

Well I feel better now. At least there is another business that people resent making a huge profit besides attaorneys.

Forgot about car salsmen.

of course! When a 'whale' is willing to pay double or triple the market price, there will be people who use their authority for personal gains. The person who paid $500K for a 50th anniversary cobra didn't have to wait 2 1/2 years for delivery.

is it shady? Yes if the profits go into individual bank accounts.

[twobjshelbys]

Has it been proven that there was a 500K direct to consumer sale? So far it is only asserted.

[REAL 1]

Originally Posted by NewYorkGuy

of course! When a 'whale' is willing to pay double or triple the market price, there will be people who use their authority for personal gains. The person who paid $500K for a 50th anniversary cobra didn't have to wait 2 1/2 years for delivery.

is it shady? Yes if the profits go into individual bank accounts.

Where do your profits go? charity?

Aside from the alleged breach of contract issue if there was an arms length deal for a sale at $500k what's shady? What are the details of that transaction? Has the buyer now cried foul or is he still apparently happy with his purchase. No doubt if he filed we likely would have heard about that one.

Please enlighten us.

[NewYorkGuy]

Originally Posted by REAL 1

Where do your profits go? charity?

Aside from the alleged breach of contract issue if there was an arms length deal for a sale at $500k what's shady? What are the details of that transaction? Has the buyer now cried foul or is he still apparently happy with his purchase. No doubt if he filed we likely would have heard about that one.

Please enlighten us.

you're the lawyer. read mr. becker's new lawsuit. at Barrett Jackson auction in Jan 2015 (3 months ago), Shelby sales guys (whoever they are) sold directly to the public all or most of the 50th anniversary cars.

l dont think Shelby bosses want to open up their company book keeping in court. did all profits from the sold 50th annv cars go to company or did shelby sales people pocket money on the side? We will find out in court... or never. previous lawsuit by mr becker was settled out of court . shelby paid undisclosed amount.

only thing Shelby manufactures is a VIN number. thats what the dealers and public are paying for. the VIN number.