Darkanion
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No, I'm not assuming anything of the kind. What I'm saying is this:
If GM wanted to stop dealers from price gouging then all GM would have to do is to put a clause in the franchise agreement saying the dealer can't sell for more than MSRP, or list price if you prefer that term to MSRP.
I'm not saying that current franchise agreements have such a clause now.
Just that there is a way to stop it if GM wanted to. Franchises have to be renewed and renegotiated periodically.
Let's say you have 2 buyers and one car. Both buyers are willing to "out bid" the other one to try to get the one car. Why should the dealer have its hands tied to NOT be able to take more money on the sale if people are foolish enough to pay OVER list price?
I don't see who your hypothetical is supposed to help.

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