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NY A07844
Bill
Status
6/16/2014
Primary Sponsor
David Gantt
Click for details
AI Summary
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Prohibits manufacturers, distributors, and their subsidiaries from obtaining new motor vehicle dealer registrations, with limited exceptions for temporary ownership during transitions (up to one year, extendable to two years for good cause, or up to five years for house coaches).
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Restricts franchisors from requiring dealers to sell exclusive extended service contracts, maintenance plans, or similar products through statements, franchise agreement provisions, performance measurements, or exclusive promotion requirements.
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Expands dealer protections regarding facility improvements by prohibiting requirements to construct or substantially renovate facilities within ten years of initial completion and restricting requirements to purchase goods or materials from franchisor-selected vendors if comparable alternatives exist.
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Strengthens dealer repurchase rights upon franchise termination, including signage repurchase within five years with depreciation schedules, and requires franchisor compensation for facility upgrades and management system lease costs when franchises are terminated due to line-make discontinuation.
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Enhances warranty and incentive claim protections by extending chargeback limitations, requiring written notice before adverse actions, limiting audit periods to one year (five years for fraud), restricting reimbursement rate changes to once per calendar year, and prohibiting denials based solely on clerical errors or administrative technicalities.
Legislative Description
Relates to automobile manufacturers and unfair practices by franchisors.
Last Action
signed chap.26
6/16/2014