Expansion of Dealer Protections in State Franchise Law:

Legislation drafted by PAA which augments dealer protections provided for in state law was passed by both the state Senate and House of Representatives last summer. These amendments to the state Board of Vehicles Act specifically expand manufacturer obligations to their franchised dealers.

The legislation:

• Requires manufacturers to demonstrate reasonableness for denying a dealer’s relocation or dualing request.
• Reduces drastically the time necessary for manufacturer consideration and determination of a dualing and relocation request.
• Prohibits manufacturers from requiring the unreasonable expansion, construction or significant modification of dealer facilities, or construction of a separate facility, unless such costly activities are justified by market and economic conditions.
• Requires manufacturers to repurchase any new, undamaged and unsold inventory acquired within 18 months of a franchise termination date, including dealer trades. Additionally, for trucks with a GVWR of 10,001 lbs. or more, the law will now require the repurchase of the current and two prior model years.

   

   

   

   

2. Site Control - Enacted

 ENACTED

PAA will be introducing legislation that limits site control restrictions imposed by manufacturers on franchisees. The expansion of dealer protections in this area will provide more flexibility in the development and disposition of buildings and real estate owned by dealers.