MI HB6100

Manufacturers must compensate dealers within 60 days for unsold inventory, parts, equipment, and required facility upgrades when terminating dealer agreements without cause, with vehicles valued at net acquisition cost and interest accruing at 6% annually if payment is late.

Manufacturers must pay fair rental value of the dealer's business premises for one year following termination, determined by mutual agreement or binding appraisal by three real estate appraisers if parties cannot agree within 30 days.

Manufacturers must compensate dealers for goodwill when terminating agreements due to ownership changes, business suspension, or line discontinuation, with value determined by mutual agreement or three-appraiser appraisal if parties cannot agree within 30 days.

Manufacturers are prohibited from coercing dealers to purchase unrequired inventory, advertising materials, or special equipment; threatening termination to force unfavorable agreements; or denying dealers the right to operate competing vehicle lines at separate or same locations if reasonable credit and capital standards are met.

Manufacturers cannot allocate vehicles arbitrarily, refuse to disclose allocation bases, withhold vehicles covered by dealer agreements, or increase prices on pre-ordered vehicles; they also cannot own/operate competing dealerships, sell directly to retail customers, or prevent dealer management changes without proving poor moral character.