HB 341 Summary

• Prohibits manufacturers and distributors from selling recreational vehicles without a signed manufacturer and dealer agreement with dealers; applies to agreements entered on or after October 1, 2011.

• Requires manufacturers to designate exclusive sales areas to dealers and prohibits changing these areas or contracting with competing dealers within one year unless the dealer takes on competing product lines that jeopardize market penetration.

• Establishes termination procedures: manufacturers/distributors must provide 120 days' written notice for cause-based terminations (or 30 days for serious violations like felony convictions or business abandonment); dealers have 30 days to cure deficiencies and 120 additional days to rectify them.

• Mandates manufacturers repurchase unsold inventory, parts, and equipment within 45 days of termination without cause at cost-plus formulas and compensate dealers fairly for warranty service and repairs.

• Requires mediation before civil lawsuits and allows circuit court actions for violations; permits transfers of ownership and family succession to dealerships unless prospective transferees have prior terminations, felony convictions, or insufficient credit.