SB1687 Summary

• Adds consumer safety and healthy competition to the legislative purposes of the Motor Vehicle Franchise Act and establishes that licensing and supervision of motor vehicle dealers is necessary for consumer protection.

• Expands the definition of "manufacturer" to include factory branches and distributor branches, and adds "good cause" definition based on commercial reasonableness in lawful competition and business practices.

• Prohibits manufacturers from taking adverse action against dealers for vehicle exports or resales based on export/sale-for-resale prohibitions unless the policy was provided in writing before sale and the dealer knew or should have known of the customer's intent to violate it.

• Prohibits manufacturers from requiring dealers to construct facility improvements or install signs replacing those completed within the past 10 years without unreasonable withholding of approval for dealer-selected vendors, and requires dealers be offered options for substantially similar goods and services.

• Adds restrictions on manufacturers' right of first refusal to acquire franchises, requiring notification within 60 days, payment of equal or greater consideration, assumption of obligations, and reimbursement of the proposed transferee's reasonable expenses.