HB412 Summary

• Prohibits manufacturers and distributors of powersports vehicles from selling vehicles without a written dealer agreement signed by both parties, effective June 1, 2014.

• Establishes unfair and deceptive trade practices for manufacturers, including coercion regarding inventory purchases, price discrimination, preventing dealer relocation, and unreasonably restricting dealership transfers or management changes.

• Requires manufacturers to provide at least 90 days notice (or 30 days for bankruptcy/fraud/closure) before terminating or refusing to renew dealer agreements, and mandates "good cause" based on material breaches with written notice and opportunity to cure.

• Obligates manufacturers to compensate dealers upon termination for unsold inventory at net cost, parts, equipment, facilities, and dealership value; provides lesser compensation for termination without good cause.

• Requires warranty companies to specify dealer obligations in writing, provide reasonable compensation schedules for warranty work, reimburse parts at wholesale cost plus 40% handling charge, and approve or disapprove warranty claims within 30 days.