HB-4782 Summary

• Establishes the "Recreational Vehicle Franchise Act" to regulate relationships between recreational vehicle manufacturers, dealers, wholesalers, and warrantors in Michigan.

• Requires manufacturers to have signed dealer agreements with dealers before selling recreational vehicles; grants dealers exclusive sales rights within designated geographic areas that cannot be changed during agreement term without specific conditions.

• Prohibits manufacturers from terminating or refusing to renew dealer agreements without good cause, requiring 90 days' written notice with reasons and allowing dealers 30 days to cure deficiencies; authorizes manufacturers to repurchase unsold inventory and equipment from terminated dealers.

• Establishes warranty obligations for warrantors including compensation schedules for warranty work at dealer's actual labor rates, reimbursement for parts at wholesale cost plus 30% handling charge, and 30-day approval/disapproval period for warranty claims.

• Allows dealers, manufacturers, and warrantors to recover actual damages plus attorney's fees for violations; requires mandatory mediation before civil litigation; takes effect July 1, 2010 (contingent on passage of HB 4781).