SB277 Summary

• Requires manufacturers and distributors to enter into written agreements with recreational vehicle dealers before selling vehicles in Alabama, effective October 1, 2011.

• Establishes procedures for terminating, canceling, or failing to renew dealer agreements, including 120-day notice requirements for cause-based terminations and mandatory cure periods, with expedited 30-day notices allowed for specific violations like felony convictions or business abandonment.

• Mandates manufacturers and distributors repurchase new untitled inventory, accessories, parts, and equipment from dealers within 45 days when terminating agreements without cause, compensating dealers at 100-105 percent of net cost.

• Requires warrantors to specify dealer obligations in writing, provide reasonable compensation schedules for warranty service and parts, and prohibits denial of warranty claims except for documented cause such as fraud or noncompliance.

• Mandates mediation before lawsuits, allows civil actions for damages with attorney's fees to prevailing parties, and exempts recreational vehicle franchise agreements from Alabama's Motor Vehicle Franchise Act.