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COMPARING DMP TO OTHER DEALER PROGRAMS
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Ken
Concerning DMP, how different is their indemnity clause from the clauses that appear in other dealer program contracts? I believe I’m holding Honeywell harmless. What am I missing in this outrage?
Jean Levenson
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RESPONSE
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Good question. I haven't reviewed all the dealer programs, but I think many share a common feature, indemnity. But dealer programs differ greatly and so do the indemnity provisions. The term "dealer program" may also be a misnomer because they are so different in approach and the extent of involvement with your operation. While one dealer program may require that you be its dealer exclusively, use its brand, its dress code, its contracts, its equipment, other dealer programs may only require you to use its central station or its software and not care how you conduct your business and under what name you conduct business as.
I think one distinction with DMP is that it is a manufacturer of equipment. I don't believe it requires its dealers to call themselves DMP. I think all that is required is that they buy DMP products. I am not even sure DMP requires an exclusive relationship, meaning its dealers can use other manufacturers' products.
So here is one important distinction, and there may be more. I am not aware of any dealer program other than DMP that requires the dealer to indemnify for product failure. I can see indemnity for improper installation or service, or if the manufacturer gets sued just because it's name is on a device [and the device worked] and the allegation of wrongdoing was that the central station missed the signal, something clearly beyond the manufacturer's responsibility.
None of us would buy an automobile if the manufacturer required indemnity for a defective vehicle. Why should any dealer buy DMP products? DMP must make some very special products to get away with this.