House Bill 1236
House Bill (H)
DIGEST
Protections for motor vehicle dealers. Specifies the amount of compensation by a manufacturer or distributor to a dealer for a part. Provides the requirements for a remedy procedure or parts required to be provided to a dealer by a manufacturer or distributor to repair a used motor vehicle that is subject to a stop sale directive. Provides that a manufacturer or distributor shall compensate a dealer for assistance requested by a customer whose vehicle is subject to an over-the-air or a remote repair, or an update to a part, system, accessory, or function by a manufacturer or distributor that is
Protections for motor vehicle dealers. Specifies the amount of compensation by a manufacturer or distributor to a dealer for a part. Provides the requirements for a remedy procedure or parts required to be provided to a dealer by a manufacturer or distributor to repair a used motor vehicle that is subject to a stop sale directive. Provides that a manufacturer or distributor shall compensate a dealer for assistance requested by a customer whose vehicle is subject to an over-the-air or a remote repair, or an update to a part, system, accessory, or function by a manufacturer or distributor that is
performed at a dealership. Provides that a manufacturer or distributor may not require a dealer to purchase a product or service from a vendor designated by the manufacturer or distributor if the dealer selects a vendor that provides products or services that are substantially similar to that of the vendor designated by the manufacturer or distributor, meets reasonable program standards or requirements of the manufacturer or distributor, and is subject to the approval of the manufacturer or distributor. Provides that a franchisor is not considered to be competing unfairly if operating a business for less than one year. (Current law says for less than two years.) Provides for conditions a manufacturer or distributor may not place on a dealer, as a condition of granting or continuing a franchise, approving the transfer of ownership or assets of a new motor vehicle dealer, or approving a successor to a new motor vehicle dealer. Provides that a manufacturer or distributor may not coerce or require a dealer to make improvements to the dealer's facilities or install signs or other franchisor image elements that would result in replacing or substantially altering improvements or image elements that the dealer made or installed during the immediately preceding 10 years. (Current law provides that a manufacturer or distributor may not require a dealer to make changes in the immediately preceding seven years.) Provides that it is an unfair practice for a manufacturer or distributor to: (1) require a dealer to; or (2) coerce a dealer into; selling or offering for sale certain products not approved, endorsed, sponsored, or offered by the manufacturer, distributor, affiliate, or captive finance source. Provides that it is an unfair practice to consider sale or offer of sale of certain products not approved, endorsed, sponsored, or offered by the manufacturer, distributor, affiliate, or captive finance source when determining eligibility to purchase products from, volume of purchases from, and pricing from the manufacturer or distributor. Provides that it is not an unfair practice for a manufacturer, distributor, affiliate, or captive finance source to: (1) offer discounts, rebates, or other incentives to a dealer who voluntarily sells or offers to sell certain products approved, endorsed, sponsored, or offered by the manufacturer, distributor, affiliate, or captive finance source; or (2) require a dealer to disclose the sale of certain products not approved, endorsed, sponsored, or offered by the manufacturer, distributor, affiliate, or captive finance source.
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