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MO HB2198

Bill

Status

Passed

6/22/2010

Primary Sponsor

Mike Parson

Click for details

Origin

House of Representatives

2010 Regular Session

AI Summary

  • Expands the Motor Vehicle Franchise Practices Act (MVFP Act) to include detailed definitions of key terms and establishes comprehensive protections for motor vehicle franchisees against franchisor misconduct.

  • Increases "relevant market area" radius for new dealer protections from 6 to 8 miles in counties with populations over 100,000 and from 10 to 15 miles in smaller counties, with enhanced notice and hearing procedures before franchisors can establish competing dealerships.

  • Establishes successor manufacturer obligations to offer franchise redemption to former franchisees within two years of acquiring a predecessor manufacturer's line-make, with fair market value compensation calculated on the highest value date.

  • Expands unlawful franchisor practices to 42 enumerated violations including restrictions on capital structure changes, ownership transfers, multi-line operations, and imposes affirmative duties for fair compensation on warranty work, parts, and facility maintenance.

  • Strengthens franchisee remedies by establishing mandatory administrative hearing procedures, allowing prevailing franchisees to recover damages plus litigation expenses and attorney fees, and prohibiting mandatory arbitration, jury trial waivers, and out-of-state dispute resolution in franchise agreements.

Legislative Description

Changes the laws regarding the Motor Vehicle Franchise Practices Act

Last Action

Delivered to Secretary of State (G)

6/22/2010

Committee Referrals

Commerce, Consumer Protection, Energy And The Environment3/31/2010
Rules3/19/2010

Full Bill Text

No bill text available