Loading chat...

GA HB1072

Bill

Status

Passed

6/4/2010

Primary Sponsor

Timothy Beardon

Click for details

Origin

House of Representatives

2009-2010 Regular Session

AI Summary

  • Amends Georgia's Motor Vehicle Franchise Practices Act to clarify that dealers may only enter voluntary release agreements to resolve a specific claim, dispute, or action, or when separate and adequate consideration is offered, with franchise renewal alone not constituting adequate consideration.

  • Prohibits franchisors from assessing surcharges against dealers solely to recover the cost of warranty repair reimbursements, though normal-course price increases for vehicles or parts remain permitted.

  • Requires franchisors to pay terminated dealers the fair market value (goodwill value) of the franchise when termination results from franchisor bankruptcy, reorganization, or sale—calculated as of the termination notice date or 12 months prior, whichever is greater—plus reimbursement for facility upgrades required within two years before termination.

  • Prohibits franchisors from demanding exclusive facilities, personnel, or showrooms if unreasonable given economic conditions, and bars conditioning franchise agreements, renewals, line-make additions, or relocations on a dealer's willingness to enter a site control agreement.

  • Bars franchisors from charging back dealers for transactions occurring more than 12 months before an audit or inquiry, and prohibits adverse action against dealers for vehicle exports unless the franchisor can demonstrate the dealer knew or should have known the customer intended to export the vehicle.

Legislative Description

Motor vehicle franchise practices; voluntary releases; provisions

Last Action

Effective Date

6/4/2010

Committee Referrals

Regulated Industries and Utilities3/11/2010
Motor Vehicles2/3/2010

Full Bill Text

No bill text available