Is a dealer responsible for taking written action to correct a misleading advertisement placed by a manufacturer that contains the dealer's name?

Study for the Motor Vehicle Industry License Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The question of whether a dealer is responsible for taking written action to correct a misleading advertisement placed by a manufacturer hinges on the nature of liability and responsibility in advertising contexts. In this case, it is recognized that the manufacturer bears primary responsibility for the content of its advertisements. The dealer’s name might be included, but that does not automatically transfer responsibility for misleading statements or claims.

From a legal standpoint, the dealer is typically not held accountable for correcting those advertisements unless there is a specific contractual obligation or agreement that states otherwise. The dealer's primary duty usually involves the sale of vehicles and adherence to local regulations and industry standards rather than managing the advertising strategies and statements made by the manufacturer, which are outside their control.

This understanding aligns with broader principles in marketing and advertising law, which often delineate the responsibilities of different parties involved. Therefore, the correct response is that the dealer is not responsible for taking action on misleading advertisements issued by the manufacturer.

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