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MI HB5606

Bill

Status

Passed

10/22/2014

Primary Sponsor

Aric Nesbitt

Click for details

Origin

House of Representatives

97th Legislature

AI Summary

  • Prohibits manufacturers from adopting arbitrary or capricious allocation and distribution plans for new motor vehicles to dealers, and requires disclosure of allocation bases upon written request.

  • Prevents manufacturers from increasing prices on vehicles already ordered by consumers before official price increase notification; requires passing through price reductions over $5.00 to all dealers with affected inventory.

  • Prohibits manufacturers from directly or indirectly owning, operating, or controlling new motor vehicle dealers, with limited exceptions for temporary ownership during transitions and entities meeting specific conditions as of May 1, 2000.

  • Restricts manufacturers from selling new motor vehicles directly to retail customers except through franchised dealers, except for sales to nonprofits and government entities.

  • Prohibits manufacturers from taking adverse action against dealers whose customers export or resell vehicles unless the dealer knew or should have known of the customer's intent; creates a rebuttable presumption that dealers did not know if the vehicle was titled in the United States.

Legislative Description

Trade; business practices; provision regarding prohibited conduct by manufacturer; modify. Amends sec. 14 of 1981 PA 118 (MCL 445.1574).

Occupations, vehicles, dealers and repair facilities

Last Action

Assigned Pa 354'14 With Immediate Effect

10/22/2014

Committee Referrals

Regulatory Reform9/23/2014
Commerce5/28/2014

Full Bill Text

No bill text available