The issue had not been considered by the Massachusetts courts. The concept of a circular-shaped relevant market area is not new. It has been adopted in a variety of forms and radius mileages by most states which have franchise or licensing statutes dealing with dealer appointments and relocations. The New England states other than Massachusetts and New Hampshire have adopted circular relevant market areas. Connecticut, for example, defines the relevant market area of a dealer as a circle with a 14-mile radius from the location of the existing dealer or the area of responsibility of the existing dealer as spelled out in his franchise, whichever is larger.
Maine uses a two-tiered circular system.
New Hampshire defines relevant market somewhat differently. It defines the relevant market area of a dealer as the city or town in which it is located or its area of responsibility, whichever is larger. The concept of a circle with a defined radius is simple and easy to apply. Its simplicity allows it to be understood by the parties and the trier of fact and avoids the need for an expert to review an array of statistics. It eliminates an issue from the protest which may be contentious and expensive to the protesting dealer and allows the parties to focus on the primary issue, namely, the propriety of the proposed appointment or relocation and the public interest.