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2010 SESSION

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HB 1012 Motor vehicle dealers and manufacturers; addresses certain practices relating to warranty, etc.

Introduced by: Clifford L. Athey, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Motor vehicle dealers and manufacturers.  Expands the definition of "franchised motor vehicle dealer" to include used car dealerships operating under the trademark of a manufacturer. The bill also defines the relevant market area applicable to dealers of heavy trucks  and limits the certain control that may be exercised over the development and operation of a motor vehicle dealer’s premises due to its franchise relationship with the manufacturer. The bill also addresses certain practices relating to warranty and sales incentive audits to guarantee motor vehicle dealers the right to return parts sent by automated ordering system. It also limits the power of a manufacturer to coerce the waiver of a motor vehicle dealer’s rights under any contract or other law; and clarifies hearing procedures.  This bill is almost identical to SB 527 except that SB527 contains an emergency clause.

SUMMARY AS PASSED HOUSE:

Motor vehicle dealers and manufacturers. Expands the definition of "franchised motor vehicle dealer" to include used car dealerships operating under the trademark of a manufacturer. The bill also defines the relevant market area applicable to dealers of heavy trucks and limits the certain control that may be exercised over the development and operation of a motor vehicle dealer's premises due to its franchise relationship with the manufacturer. The bill also addresses certain practices relating to warranty and sales incentive audits to guarantee motor vehicle dealers the right to return parts sent by automated ordering system. It also limits the power of a manufacturer to coerce the waiver of a motor vehicle dealer's rights under any contract or other law; and to clarify hearing procedures.

SUMMARY AS INTRODUCED:

Motor vehicle dealers and manufacturers.  Expands the definition of "franchised motor vehicle dealer" to include used car dealerships operating under the trademark of a manufacturer. The bill also defines the relevant market area applicable to dealers of heavy trucks  and limits the certain control that may be exercised over the development and operation of a motor vehicle dealer’s premises due to its franchise relationship with the manufacturer. The bill also addresses certain practices relating to warranty and sales incentive audits to guarantee motor vehicle dealers the right to return parts sent by automated ordering system. It also limits the power of a manufacturer to coerce the waiver of a motor vehicle dealer’s rights under any contract or other law; and to clarify hearing procedures. Finally, the measure requires that funds held by a manufacturer that are necessary to perform its obligations in connection with the sale of motor vehicles be deemed trust funds held in trust, and grants dealers the limited right to sell new car inventory as new for 90 days following the termination of a franchise.