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DE SB229
Bill
AI Summary
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Modifies the definition of "relevant market area" for dealership competition analysis from 10 miles statewide to 10 miles for all areas (removing the previous 7-mile exception for New Castle County)
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Establishes new methodology for warranty parts and labor reimbursement allowing dealers to submit 100 sequential customer repair orders or 90 days of repairs to set their nonwarranty rate, with manufacturer approval required within 30 days and dealer right to appeal denials to the Public Service Commission
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Expands manufacturer obligations upon franchise termination to include purchasing inventory with under 750 miles, parts, equipment, tools, and facility upgrades within specified timeframes and depreciation schedules ranging from 100% to 25% based on acquisition date
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Adds compensation requirement equal to fair market value of the franchise when a manufacturer ceases a line-make, determined through appraisal with dispute resolution procedures if valuations differ by more than 10%
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Prohibits manufacturers from requiring facility alterations if similar upgrades were completed within 7 years at costs exceeding $250,000, restricting dealer customer list access, improperly withholding incentives based on vehicle resale, and disallowing adverse actions against dealers seeking fair compensation
Legislative Description
An Act To Amend Title 6 Of The Delaware Code Relating To Motor Vehicle Franchising Practices.
Last Action
Signed by Governor
7/27/2012