S327 Summary

• Expands definition of "motor vehicle dealer" to include persons using computers or communications equipment within North Carolina to transmit applications, contracts, or orders for vehicles purchased or leased by in-state retail customers.

• Requires manufacturers, factory branches, distributors, and distributor branches operating as motor vehicle dealers to have an established salesroom, including those using remote digital transactions.

• Extends transition period for certain manufacturer pricing programs that vary prices to franchised dealers from June 30, 2014 to June 30, 2018.

• Adds four new protections for motor vehicle dealers: prohibits coercion regarding sports-related displays; prevents discrimination for selling non-manufacturer service contracts; limits coercion to use manufacturer-designated vendors; and restricts manufacturer interference with dealer staffing decisions.

• Requires manufacturers to compensate dealers for warranty repairs requiring direct dealer participation and prohibits manufacturers from providing warranty repairs directly without dealer involvement; establishes indemnification requirements for manufacturers and data vendors handling dealer customer information and security breaches.