This point is added to Part 5 (contracts for the sale of new cars) and Part 6 (application, savings and transition rules) in the franchise code of conduct. To determine whether this is a quantitatively advantageous option, it should be noted that the benefits to the distributor actually outsigh the costs to the manufacturer. The argument to support or reject this option therefore does not follow from a cost-benefit argument. Rather, it is the arguments put forward earlier, which indicate that the obligation for one of the parties to be responsible for the stock at the end of the agreement should not be established in advance between the parties. And as has been said elsewhere, inventory management should preferably be cooperative at the end of an agreement. Even if an agreement is eventually renewed, the uncertainty associated with short notice periods for non-renewal could influence the decision-making of new car dealers in the conduct of their business. For example, a car dealership may choose to continue investing in the business if it is certain that the car manufacturer will not issue a notification of non-renewal six months after a capital increase.  Turnbull, Samantha, MacKenzie, Bruce, Shoebridge, Joanne 2017, Holden cuts dealership franchises across Australia, ABC, August 17, 2017. In addition, Subsections 51(3) and (4) require the parties to a new vehicle dealer contract to discuss the expenses, including the circumstances in which the franchisee is likely to recover the expenses. In accordance with clause 6 of the Franchise Code of Conduct, the parties must act in good faith in these discussions.
Given the risk associated with commercial agreements, there is no provision to guarantee the franchisee that he will be able to cover his costs. This discussion will include tailored and more accurate disclosure to help the franchisee more clearly assess whether they are able to calculate their expenses over the life of the agreement. · Changes in supply chains following the shutdown of car production in Australia in 2017 and new free trade agreements. . . .