Statute Text
Prohibition on coercing dealers to take certain actions.
(1)(a) A manufacturer, distributor
or importer may not, through any of the methods described in paragraph (b) of
this subsection, directly or indirectly coerce or attempt to coerce a dealer
to:
(A) Advertise,
promote, offer or sell an extended service contract, an extended maintenance
plan, a guaranteed asset protection waiver or other arrangement that pays a
purchaser the remaining balance on a note secured by a motor vehicle if the
motor vehicle is lost, stolen or damaged beyond repair, or a similar product or
service, if the manufacturer, distributor or importer provides, originates,
sponsors or endorses the product or service;
(B) Install on
the dealers premises an electric vehicle charging station for the primary
purpose of allowing the public to charge electric vehicles; or
(C) Accept a new
plan or system for allocating or scheduling a delivery of a motor vehicle, part
or accessory, or a modification to an existing plan or system, if the new or
modified plan or system is not fair, reasonable and equitable for all dealers
of the manufacturers, distributors or importers line-make.
(b) Prohibited
methods for coercing or attempting to coerce a dealer include, but are not
limited to:
(A) Stating to a
dealer that the dealers failure to advertise, promote, offer or sell the
products or services described in paragraph (a)(A) of this subsection will
substantially and adversely affect the dealers business or the dealers
relationship with the manufacturer, distributor or importer;
(B) Requiring the
dealer in a franchise agreement to advertise, promote, offer or sell the
products or services described in paragraph (a)(A) of this subsection, install
the electric vehicle charging station described in paragraph (a)(B) of this
subsection or accept the plan or system described in paragraph (a)(C) of this
subsection;
(C) Measuring the
dealers performance in a franchise on the basis of whether, or the extent to
which, the dealer advertises, promotes, offers or sells the products or
services described in paragraph (a)(A) of this subsection, installs the
electric vehicle charging station described in paragraph (a)(B) of this
subsection or accepts the plan or system described in paragraph (a)(C) of this
subsection;
(D) Requiring the
dealer to advertise, promote, offer or sell the products or services described
in paragraph (a)(A) of this subsection to the exclusion of other, similar
products or services that a person other than the manufacturer, distributor or
importer offers;
(E) Using force
or a threat of force;
(F) Withholding
or threatening to withhold motor vehicles or parts from the dealer, or offering
or providing motor vehicles or parts to the dealer at a price that is higher
than the price that the manufacturer, distributor or importer offers or
provides to other dealers of the manufacturers, distributors or importers
line-make; or
(G) Refusing to
offer to the dealer or to allow the dealer to earn incentives on the same terms
that the manufacturer, distributor or importer offers or provides to other
dealers of the manufacturers, distributors or importers line-make.
(2) The
prohibition in subsection (1) of this section does not affect a manufacturers,
distributors or importers right or ability to:
(a) Provide
incentives to a dealer that voluntarily decides to advertise, promote, offer or
sell the products or services described in subsection (1)(a)(A) of this section
or to install the electric vehicle charging station described in subsection
(1)(a)(B) of this section; or
(b) Require a
dealer that sells a product or service that is similar to the products or
services described in subsection (1)(a)(A) of this section, but that the
manufacturer, distributor or importer does not provide, originate, sponsor or
endorse, to notify a customer in writing, and to obtain the customers
acknowledgment, that the manufacturer, distributor or importer does not
provide, originate, sponsor or endorse the product or service.
(3) A
manufacturer, distributor or importer is not coercing a dealer if the
manufacturer, distributor or importer requires the dealer to comply with
reasonably necessary standards to fulfill the dealers sales and service
obligations.
(4) At a dealers
written request, a manufacturer, distributor or importer shall describe in
writing the basis for allocating or scheduling for delivery a motor vehicle,
part or accessory among all the dealers of the manufacturers, distributors or
importers line-make.
(5) A
manufacturer, distributor or importer need not pay or make available incentives
or other benefits to a dealer that has not qualified for the incentives or
benefits on the same terms that the manufacturer, distributor or importer
applies uniformly and equitably to all of the dealers of the manufacturers,
distributors or importers line-make. [2015 c.584 §2; 2025 c.50