IMHO -- this is not a question of "laws" but of contract language. Big difference. Frankly, this is semantics. I am assuming that Kelly. in talking with Husky corporate, got this squared away with them. Therefore, there aren't any contractual issues to be resolved [a "waiver" if you will].
I also think its short sighted -- these are left over bikes in small quantities. The punitive nature of the dealer reactions is troubling, particularly when they threaten. Their beef is not with Motosportz -- its with Husky corporate. Just my opinion.
To the extent that Husky corporate is reading -- I didn't buy a Husky last time around [January 2009] because of lingering issues involving the resurgence of the brand and lack availability of the bikes and parts [aftermarket as well]. Also, there didn't seem to be anywhere to go to "fix" issues. As that is changing, my preference is to buy a Husky next time around [i.e. the "new" redesigned 300 - please?]. My inclination to go Husky is near totally do to the information available in this forum -- my comfort level about Husky is now better -- I can feel good about a purchase because I have friends and help [in addition to a fine dealer in Boise]. Take all of this away and I buy a pumpkin again. Just FYI.
IMHO -- this backlash is BS and something should be done to fix it. Tell what dealers object so I won't spend my money there.