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MI SB1308
Bill
AI Summary
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Prohibits manufacturers from requiring dealers to enter property use agreements (exclusive facilities, site control, or exclusive use agreements) as a condition for awarding, renewing, or relocating dealerships, unless monetary or separately-valued consideration is offered and accepted.
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Allows designated family members or executive managers of deceased or incapacitated dealers to succeed to dealership ownership under existing dealer agreements if notice is given within 120 days and they meet current manufacturer qualification criteria; manufacturers may refuse only for good cause with 60-day notice period.
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Requires manufacturers to compensate dealers for warranty service and diagnostic work at rates not less than dealer charges for non-warranty service; manufacturers must approve or deny warranty claims within 30 days and pay approved claims within 30 days.
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Restricts manufacturer chargebacks of paid warranty claims to cases of fraud (within 2 years), unsubstantiated documentation (within 12 months), or improper repair procedures; requires manufacturers to meet with dealers in person, by video, or by telephone before charging back claims and provide dealers 45+ days to respond.
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Makes manufacturers liable for actual damages, court costs, and reasonable attorney fees for violations of the act; effective only if Senate Bill 1309, House Bill 6099, and House Bill 6100 are also enacted.
Legislative Description
Trade; vehicles; regulation of new motor vehicle manufacturers, distributors, and dealers and their relationships and dealings; prohibit certain actions by manufacturer and make other general revisions. Amends secs. 15, 17 & 20 of 1981 PA 118 (MCL 445.1575 et seq.) & adds sec. 14a. TIE BAR WITH: HB 6099'10, HB 6100'10, SB 1309'10
Trade, vehicles
Last Action
Assigned Pa 0138'10 With Immediate Effect
8/11/2010