The Bmw Stores, Inc. v. Peugeot Motors of America, Inc., Eastern Auto Distributors, Inc., Riverside Ford, Inc.

RYAN, Circuit Judge.

Under Kentucky law, an automobile distributor seeking to enter into a franchise agreement establishing an additional new car dealership may find itself unable to do so if its proposed dealership is within ten miles of an existing dealership selling the same automobile line. Ky.Rev.Stat.Ann. (KRSA) § 190.047(6). The issue in this case is whether the limitations imposed by § 190.047(6) apply when the existing dealership is within ten miles of the proposed dealership, but is located in another state. We conclude that § 190.047(6) does not apply under these facts because we…