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High Court: Volvo Unfairly Canceled Pact With Wausau Dealer


WAUSAU, Wis. (WTAQ) - The Wisconsin Supreme Court ruled Thursday that Volvo acted unfairly when it canceled a franchise agreement with a truck dealership in Wausau. The justices unanimously agreed with an earlier ruling by an administrative law judge. The Wausau Truck Center had sold Volvo trucks since 1988. But in 2001, the dealer decided to sell the Volvo franchise and sell a competitor’s trucks instead.

A year later, Wausau Truck changed its mind and started again to market Volvo. The manufacturer cut ties with Wausau Truck in 2004, and accused the dealer of breaking its contract by not promoting its products. But the state law judge said the termination was unfair, because the dealer restored its marketing of the Volvo brand.