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AL SB322
Bill
AI Summary
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Prohibits manufacturers, distributors, and dealers of powersports vehicles from selling vehicles without a signed manufacturer and dealer agreement effective June 1, 2014.
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Defines unfair and deceptive trade practices including coercion to purchase unwanted items, arbitrary franchise termination, discriminatory pricing, and restrictions on dealer management or facility changes.
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Requires manufacturers to provide 90 days' notice before terminating or nonrenewing dealer agreements (30 days for bankruptcy, fraud, or extended business closure), with burden of proof on manufacturer to show good cause.
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Mandates compensation to dealers upon termination including repurchase of inventory at net cost, parts and supplies, equipment, tools, and facility rental value for three years if facilities were required by the manufacturer.
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Establishes warrantor obligations to specify dealer responsibilities in writing, provide reasonable compensation schedules for warranty service and parts (with minimum 40% handling charge), and prohibits denial of warranty claims except for valid cause.
Legislative Description
Motor vehicles, to regulate manufacturer's and dealer's agreement, Sec. 8-20-2 am'd.
Motor Vehicles
Last Action
Read for the first time and referred to the Senate committee on Fiscal Responsibility and Accountability
2/6/2014