CT
Connecticut House Bill HB05453

Connecticut 2010 Regular Session

Connecticut House Bill HB05453 Compare Versions

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1-General Assembly Substitute Bill No. 5453
2-February Session, 2010 *_____HB05453TRA___031610____*
1+General Assembly Raised Bill No. 5453
2+February Session, 2010 LCO No. 1989
3+ *01989_______TRA*
4+Referred to Committee on Transportation
5+Introduced by:
6+(TRA)
37
48 General Assembly
59
6-Substitute Bill No. 5453
10+Raised Bill No. 5453
711
812 February Session, 2010
913
10-*_____HB05453TRA___031610____*
14+LCO No. 1989
1115
12-AN ACT CONCERNING STATUTORY AND REGULATORY PROVISIONS RELATING TO RECREATIONAL VEHICLE FRANCHISES.
16+*01989_______TRA*
17+
18+Referred to Committee on Transportation
19+
20+Introduced by:
21+
22+(TRA)
23+
24+AN ACT CONCERNING RECREATIONAL VEHICLE FRANCHISES.
1325
1426 Be it enacted by the Senate and House of Representatives in General Assembly convened:
1527
16-Section 1. (Effective from passage) The Commissioner of Motor Vehicles shall review the statutory and regulatory provisions relating to franchises for recreational vehicles, as defined in section 14-1 of the general statutes. The commissioner shall submit findings to the joint standing committee of the General Assembly having cognizance of matters relating to motor vehicles, including any proposed amendments or additions to such provisions, not later than January 12, 2011.
28+Section 1. (NEW) (Effective October 1, 2010) As used in sections 1 to 14, inclusive, of this act:
29+
30+(1) "Area of sales responsibility" means a geographical area agreed to by a dealer and the manufacturer in a dealer agreement, in which the dealer has the exclusive right to display or sell the manufacturer's new recreational vehicles of a particular line-make to the public;
31+
32+(2) "Dealer" means a dealer, as defined section 42-133r of the general statutes, who has been issued a new car dealer's license pursuant to section 14-52 of the general statutes;
33+
34+(3) "Dealer agreement" means a written agreement or contract entered into by a manufacturer and a dealer that establishes the legal rights and obligations of such manufacturer and dealer and pursuant to which such dealer is authorized to sell new recreational vehicles manufactured or distributed by such manufacturer;
35+
36+(4) "Commissioner" has the same meaning as provided in section 14-1 of the general statutes;
37+
38+(5) "Factory campaign" means an effort by a warrantor to contact recreational vehicle owners or dealers in order to address an issue concerning a problem or defective part or equipment;
39+
40+(6) "Family member" means: (A) A spouse; (B) a child, grandchild, parent, sibling, niece or nephew, or (C) a spouse of a child, grandchild, parent, sibling, niece or nephew;
41+
42+(7) "Line-make" means a specific series of recreational vehicle products that: (A) Are identified by a common series trade name or trademark; (B) are targeted to a particular market segment based on their decor, features, equipment, size, weight and price range; (C) have dimensions and interior floor plans that distinguish the recreational vehicles from recreational vehicles that have substantially the same decor, features, equipment, weight and price; (D) belong to a single, distinct classification of recreational vehicle product type that has a substantial degree of commonality in the construction of the chassis, frame and body; and (E) are authorized for sale by the dealer in the dealer agreement;
43+
44+(8) "Manufacturer" means a person that manufactures or wholesales recreational vehicles or that distributes or wholesales recreational vehicles to dealers;
45+
46+ (9) "Person" means an individual, partnership, corporation, limited liability company, association, trust, estate or other legal entity;
47+
48+(10) "Proprietary part" means a recreational vehicle part manufactured by or for and sold exclusively by a manufacturer;
49+
50+(11) "Recreational vehicle" has the same meaning as provided in section 14-1 of the general statutes;
51+
52+(12) "Transient customer" means a person who owns a recreational vehicle, is temporarily traveling through a dealer's area of sales responsibility and engages such dealer to perform service work on such recreational vehicle; and
53+
54+(13) "Warrantor" means a manufacturer or any other person that provides a warranty to the consumer in connection with a new recreational vehicle or parts, accessories or components of a new recreational vehicle. "Warrantor" does not include a person that provides a service contract, mechanical or other insurance or an extended warranty sold for separate consideration by a dealer or other person not controlled by a manufacturer.
55+
56+Sec. 2. (NEW) (Effective October 1, 2010) (a) A manufacturer shall not sell a recreational vehicle to or through a dealer unless the manufacturer has a dealer agreement, as defined in section 1 of this act, with such dealer that meets the requirements of sections 2 to 14, inclusive, of this act.
57+
58+(b) Except as provided in subsection (c) of this section, a dealer shall not sell a new recreational vehicle in this state unless the dealer has a dealer agreement with a manufacturer of such recreational vehicle that meets the requirements of sections 2 to 14, inclusive, of this act.
59+
60+(c) All of the following apply to a dealer's area of sales responsibility included in a dealer agreement between a manufacturer and a dealer:
61+
62+(1) The manufacturer shall designate in the dealer agreement the area of sales responsibility exclusively assigned to the dealer.
63+
64+(2) The manufacturer shall not change the dealer's area of sales responsibility or establish another dealer for the same line-make in that area during the term of the dealer agreement.
65+
66+(3) If the dealer enters into an agreement to sell any recreational vehicles that compete with the recreational vehicles included in the dealer agreement, or enters into an agreement to increase a preexisting commitment to sell any recreational vehicles that compete with the recreational vehicles included in the dealer agreement, while the dealer agreement is in place, the manufacturer may revise the dealer's area of sales responsibility if both of the following are met:
67+
68+(A) The dealer agreement does not authorize or permit the dealer to enter into that subsequent agreement.
69+
70+(B) If, in the reasonable opinion of the manufacturer, the market penetration of the manufacturer's products is jeopardized by that subsequent agreement.
71+
72+(4) The area of sales responsibility is not subject to review or change in the one-year period after the date of the first delivery of new recreational vehicles to the dealer under the initial dealer agreement.
73+
74+(d) A dealer agreement shall include a designated principal of the dealer. A dealer agreement may identify a family member as the successor of such designated principal or may include such designated principal's succession plan. A dealer may at any time change a designation or succession plan made in the dealer agreement by providing written notice to the manufacturer.
75+
76+Sec. 3. (NEW) (Effective October 1, 2010) (a) A manufacturer shall, from time to time, publish its prices, charges and terms of sale for recreational vehicles and shall only sell a recreational vehicle to a dealer in accordance with the published prices, charges and terms of sale in effect at the time of sale.
77+
78+(b) If a manufacturer offers a dealer a rebate, discount or program on any recreational vehicles, the manufacturer must offer the same rebate, discount or program to every similarly situated dealer.
79+
80+(c) In a renewal of a dealer agreement, the manufacturer shall not impose on the dealer additional inventory stocking requirements or retail sales targets in excess of market growth in the dealer's area of sales responsibility.
81+
82+Sec. 4. (NEW) (Effective October 1, 2010) (a) A manufacturer, directly or through an officer, agent or employee of such manufacturer, shall not terminate or refuse to renew a dealer agreement without good cause.
83+
84+(b) A manufacturer shall have the burden of showing good cause for the termination or nonrenewal of a dealer agreement. The following factors shall be considered in determining if there is good cause for a proposed termination or nonrenewal of a dealer agreement:
85+
86+(1) The extent of the dealer's penetration in the relevant market area.
87+
88+(2) The nature and extent of the dealer's investment in its business.
89+
90+(3) The adequacy of the dealer's service facilities, equipment, parts, supplies and personnel.
91+
92+(4) The effect of the proposed action on the community.
93+
94+(5) The extent and quality of the dealer's service under recreational vehicle warranties.
95+
96+(6) Whether the dealer fails to follow agreed-upon procedures or standards related to the overall operation of the dealership.
97+
98+(7) The dealer's performance under the terms of dealer agreement.
99+
100+(c) Except as otherwise provided in this section, a manufacturer shall provide a dealer with written notice of termination or nonrenewal of a dealer agreement. The following provisions shall apply to such written notice:
101+
102+(1) Except as provided in subsection (d) or (e) of this section, the manufacturer shall provide such written notice of termination or nonrenewal at least ninety days before the effective date of the termination or nonrenewal;
103+
104+(2) Such written notice of termination or nonrenewal of a dealer agreement shall state all of the reasons for the termination or nonrenewal;
105+
106+(3) The notice of termination or nonrenewal of a dealer agreement shall state that if the dealer provides to the manufacturer a written notice of intent to cure all claimed deficiencies not later than thirty days after the dealer receives the notice of termination or nonrenewal, the dealer shall have thirty days after the date of such notice of intent in which to correct such deficiencies. If all of the deficiencies are corrected within such thirty-day period, the notice shall be void and the manufacturer shall not terminate or refuse to renew the dealer agreement because of the deficiencies stated in the notice. If the dealer does not provide a notification of intent to cure deficiencies in such thirty-day period, the termination or nonrenewal shall become effective ninety days after the dealer receives the notice;
107+
108+(4) A manufacturer may reduce such notice period to ten days and shall not be required to allow the dealer an opportunity to correct the deficiencies if the manufacturer's grounds for termination or nonrenewal are any of the specific categories of good cause described in subsection (f) of this section; and
109+
110+(5) A manufacturer is not required to provide notice or an opportunity to correct deficiencies under this subsection if the manufacturer's grounds for termination or nonrenewal is that the dealer becomes insolvent, is bankrupt or makes an assignment for the benefit of creditors.
111+
112+(d) If a manufacturer terminates or refuses to renew a dealer agreement for good cause under this section, the manufacturer shall have the option to repurchase any of the following from such dealer:
113+
114+(1) All new, untitled recreational vehicles that were acquired from the manufacturer at least twelve months before the effective date of the notice of termination that have not been used, except for demonstration purposes, and that have not been altered or damaged, at one hundred per cent of the net invoice cost of the recreational vehicles, including transportation, less applicable rebates and discounts to the dealer;
115+
116+(2) All current and undamaged accessories and proprietary parts sold to the dealer for resale during the twelve months before the effective date of the termination that are accompanied by the original invoice, at one hundred and five per cent of the original net price paid to the manufacturer to compensate the dealer for handling, packing and shipping the accessories and parts; and
117+
118+(3) Any properly functioning diagnostic equipment, special tools, current signage and other equipment and machinery purchased by the dealer at least five years before the effective date of the termination at the manufacturer's request, if such diagnostic equipment, special tools, current signage, and other equipment and machinery cannot be used in the normal course of the dealer's ongoing business, at one hundred per cent of the dealer's net cost, plus freight, destination, delivery and distribution charges and sales taxes.
119+
120+(e) The dealer shall promptly return or arrange for the return of all of the items the manufacturer elects to repurchase, at the manufacturer's expense and the manufacturer shall pay all of the amounts owed to the dealer not later than thirty days after it receives the returned items.
121+
122+(f) As used in this section, "good cause" includes, but is not limited to, any of the following:
123+
124+(1) Conviction of, or plea of nolo contendere by a dealer or an owner of a dealer to a felony;
125+
126+(2) Abandonment or closing of the business operations of a dealer for ten consecutive business days unless the closing is due to an act of God, strike, labor difficulty or other cause over which the dealer has no control;
127+
128+(3) A misrepresentation to a manufacturer by a dealer that affects the business relationship between the dealer and the manufacturer;
129+
130+(4) Suspension or revocation of a dealer's license, or refusal to renew a dealer's license, by the commissioner;
131+
132+(5) Any violation of sections 2 to 14, inclusive, of this act by a dealer that is not cured not later than thirty days after written notice of the violation by a manufacturer; or
133+
134+(6) The dealer becomes insolvent, is bankrupt or makes an assignment for the benefit of creditors.
135+
136+Sec. 5. (NEW) (Effective October 1, 2010) (a) A dealer shall not terminate a dealer agreement without good cause. A dealer that terminates such agreement shall provide the manufacturer with written notice of such termination at least ninety days before the effective date of the termination.
137+
138+(b) The following provisions shall apply to a termination of a dealer agreement under this section for good cause:
139+
140+(1) The notice described in subsection (a) of this section shall state all reasons for the proposed termination;
141+
142+(2) The notice described in subsection (a) of this section shall state that if the manufacturer provides to the dealer a written notification of intent to cure all claimed deficiencies not later than thirty days after the manufacturer receives the notice, the manufacturer shall have thirty days after the date of the notice to correct the deficiencies. If all of the deficiencies are corrected within such thirty-day period, the notice shall be void and the dealer shall not terminate the dealer agreement because of the deficiencies stated in the notice. If the manufacturer does not provide a notification of intent to cure deficiencies in such thirty-day period, the termination shall take effect ninety days after the manufacturer receives the notice.
143+
144+(c) A dealer may reduce the notice period described in subsection (a) of this section to ten days, and shall not be required to allow the manufacturer an opportunity to correct the deficiencies if the dealer's grounds for termination or nonrenewal are any of the categories of good cause described in this section.
145+
146+(d) A dealer shall not be required to provide notice or an opportunity to correct deficiencies under this subsection if the dealer's grounds for termination or nonrenewal is that the manufacturer becomes insolvent, is bankrupt or makes an assignment for the benefit of creditors.
147+
148+(e) The dealer has the burden of showing good cause. Each of the following is considered good cause for a proposed termination of a dealer agreement by a dealer:
149+
150+(1) Conviction of, or plea of nolo contendere by, the manufacturer to a felony;
151+
152+(2) Abandonment or closing the business operations of the manufacturer for ten consecutive business days unless the closing is due to an act of God, strike, labor difficulty or other cause over which the manufacturer has no control;
153+
154+(3) A misrepresentation to the dealer by the manufacturer that affects the business relationship between the dealer and manufacturer;
155+
156+(4) Any violation of sections 2 to 14, inclusive, of this act by the manufacturer that is not cured not later than thirty days after written notice of the violation by the dealer;
157+
158+(5) A material breach of the dealer agreement by the manufacturer; or
159+
160+(6) The manufacturer becomes insolvent, is bankrupt or makes an assignment for the benefit of creditors.
161+
162+(f) If the manufacturer fails to cure any claimed deficiencies under this section, the dealer may require that the manufacturer repurchase any of the following from the dealer:
163+
164+(1) All new, untitled recreational vehicles that were acquired from the manufacturer at least twelve months before the effective date of the notice of termination that have not been used, except for demonstration purposes, and that have not been altered or damaged, at one hundred per cent of the net invoice cost of the recreational vehicles, including transportation, less applicable rebates and discounts to the dealer;
165+
166+(2) All current and undamaged accessories and proprietary parts sold to the dealer for resale at least twelve months before the effective date of the termination that are accompanied by the original invoice, at one hundred and five per cent of the original net price paid to the manufacturer to compensate the dealer for handling, packing and shipping the accessories and parts; and
167+
168+(3) Any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery, purchased by the dealer at least five years before the effective date of the termination at the manufacturer's request, if it cannot be used in the normal course of the dealer's ongoing business, at one hundred per cent of the dealer's net cost, plus freight, destination, delivery and distribution charges and sales taxes.
169+
170+(g) The dealer shall promptly return or arrange for the return of all of the items the manufacturer is required to repurchase under this section at the manufacturer's expense and the manufacturer shall pay all of the amounts owed to the dealer under this section to the dealer not later than thirty days after it receives the returned items.
171+
172+Sec. 6. (NEW) (Effective October 1, 2010) A dealer may not be prohibited from selling a particular line-make after a dealer agreement has been terminated or not renewed under section 9 or 11 of this act. If recreational vehicles of a line-make are not returned or required to be returned to the manufacturer, the dealer may continue to sell all line-makes that were subject to the dealer agreement and are currently in stock until those line-makes are no longer in the dealer inventory.
173+
174+Sec. 7. (NEW) (Effective October 1, 2010) (a) The following shall apply to a proposed sale of the business assets, transfer of the stock or other transaction that will result in a change of ownership of a dealer, except a transaction described in subsection (b) of this section:
175+
176+(1) The dealer must provide written notice to the manufacturer at least ninety days before the proposed closing of the transaction. The notice shall include complete copies of all documentation of the proposed transaction and any other documentation reasonably requested by the manufacturer in order to determine if it will make an objection to the transaction;
177+
178+(2) If the dealer is not in breach of the dealer agreement or in violation of sections 2 to 14, inclusive, of this act at the time it provides the notice described in this section, the manufacturer shall not object to the proposed transaction unless the prospective transferee meets one or more of the following:
179+
180+(A) It previously was a party to a dealer agreement with the manufacturer that the manufacturer terminated.
181+
182+(B) It previously was convicted of a felony or any crime of fraud, deceit, or moral turpitude.
183+
184+(C) It does not have any license required by law to conduct business as a dealer in this state.
185+
186+(D) It does not have an active line of credit sufficient to purchase recreational vehicles from the manufacturer according to the terms of the dealer agreement.
187+
188+(E) In the preceding ten years, it was bankrupt or insolvent, made a general assignment for the benefit of creditors, or a receiver, trustee or conservator was appointed to take possession of the transferee's business or property.
189+
190+(b) If the manufacturer objects to the proposed transaction, the manufacturer shall give written notice of its objection, including its reasons for objecting, to the dealer not later than thirty days after receiving the notice described in this section. If the manufacturer does not give notice of its objection within such thirty-day period, the proposed transaction shall be considered approved by the manufacturer.
191+
192+(c) For purposes of subsection (b) of this section, the manufacturer has the burden of demonstrating its objection to the proposed transaction.
193+
194+(d) All of the following apply concerning the death, incapacity or retirement of the designated principal of a dealer:
195+
196+(1) The manufacturer must provide the dealer an opportunity to designate, in writing, a family member as a successor to the dealer in the event of the death, incapacity or retirement of the designated principal.
197+
198+(2) The manufacturer shall not prevent or refuse to honor the succession to a dealership by a family member of the deceased, incapacitated or retired designated principal of that dealer unless the manufacturer had provided written notice to the dealer of any objections to the dealer's succession plan not later than thirty days after receiving the dealer's succession plan or any modification of the dealer's succession plan.
199+
200+(3) Except as provided in subsection (e) of this section, unless the dealer is in breach of the dealer agreement, a manufacturer shall not object to the succession to a dealership by a family member of the deceased, incapacitated, or retired designated principal unless the successor meets one or more of the following:
201+
202+(A) It was previously convicted of a felony or any crime of fraud, deceit, or moral turpitude.
203+
204+(B) In the preceding ten years, it was bankrupt, insolvent or made an assignment for the benefit of creditors.
205+
206+(C) It was previously a party to a dealer agreement with the manufacturer that the manufacturer terminated for a breach of a dealer agreement.
207+
208+(D) It does not have an active line of credit sufficient to purchase recreational vehicles from the manufacturer according to the terms of the dealer agreement.
209+
210+(E) It does not have any license required by law to conduct business as a dealer in this state.
211+
212+(e) The manufacturer shall have the burden of proof regarding any objection to the succession to a dealership by a family member of the deceased, incapacitated or retired designated principal.
213+
214+(f) The manufacturer's consent shall be required for the succession to a dealership by a family member of the deceased, incapacitated or retired designated principal if the succession involves a relocation of the business or an alteration of the terms and conditions of the dealer agreement.
215+
216+Sec. 8. (NEW) (Effective October 1, 2010) (a) A warrantor shall have all of the following obligations to each dealer engaged in the sale or lease of products that are covered by a warranty from that warrantor:
217+
218+(1) To specify in writing to the dealer the dealer's obligations, if any, for preparation, delivery and warranty service on its products.
219+
220+(2) To compensate the dealer for warranty service required of the dealer by the warrantor.
221+
222+(3) To provide the dealer with a schedule of compensation the warrantor will pay for warranty work and the warrantor's time allowances for the performance of that work. All of the following apply to the schedule of compensation required under this subdivision:
223+
224+(A) It must include reasonable compensation for diagnostic work and warranty labor;
225+
226+(B) Time allowances in the schedule for the diagnosis and performance of warranty labor must be reasonable for the work to be performed; and
227+
228+(C) The compensation of a dealer for warranty labor shall equal or exceed the lowest retail labor rates actually charged by the dealer for similar nonwarranty labor if those rates are consistent with the actual wage rates paid by the dealer and the actual retail labor rates charged by the dealer in the community in which the dealer is doing business.
229+
230+(4) To reimburse the dealer for warranty parts at actual wholesale cost, plus a minimum handling charge of thirty per cent and any freight costs to return warranty parts to the warrantor.
231+
232+(5) To deny dealer claims for warranty compensation only for cause, including, but not limited to, performance of nonwarranty repairs, material noncompliance with the warrantor's published policies and procedures, lack of material documentation of claims, fraud or misrepresentation.
233+
234+(b) A warrantor may conduct audits of the records of a dealer that sells or leases its warranted products on a reasonable basis.
235+
236+(c) A dealer shall submit warranty claims to a warrantor not later than forty-five days after completing warranty work on a warranted product.
237+
238+(d) A dealer shall immediately notify the warrantor orally, or in writing, if the dealer is unable to perform warranty repairs on a warranted product as soon as is reasonably possible, but not later than twelve days after the delivery of the recreational vehicle to the dealer for warranty repair. A warrantor that receives a notification from a dealer under this subsection shall make arrangements for another dealer or repair facility to perform the warranty repairs identified by the dealer in the notification not later than twelve days after receiving the notification.
239+
240+(e) A warrantor shall approve or disapprove a warranty claim on a warranted product, in writing, not later than thirty days after the date the dealer submits the claim, if the claim is submitted in the manner and in the form prescribed by the warrantor. If a claim that is properly submitted is not specifically disapproved, in writing, by a warrantor within such thirty-day period, the claim shall be considered approved by the warrantor and the warrantor shall pay the amount of the claim to the dealer not later than forty-five days after the dealer submitted the claim.
241+
242+Sec. 9. (NEW) (Effective October 1, 2010) (a) A warrantor shall not:
243+
244+(1) Fail to perform all of its warranty obligations with respect to a warranted product.
245+
246+(2) In any written notice of a factory campaign to recreational vehicle owners and dealers, fail to include the expected date by which necessary parts and equipment, including tires and chassis or chassis parts if required, will be available to dealers to perform the campaign work. The warrantor shall provide sufficient parts to the dealer to perform the campaign work. If the number of parts provided to the dealer under this subdivision exceed the dealer's requirements to perform the campaign work, the dealer may return unused parts to the warrantor for credit after completion of the campaign.
247+
248+(3) Fail to compensate a dealer for authorized repairs of warranted products damaged during the manufacturing process, or damaged while in transit to the dealer if the warrantor selected the carrier.
249+
250+(4) Fail to compensate a dealer for authorized warranty service under this section in accordance with the applicable schedule of compensation provided to the dealer under the provisions of sections 2 to 14, inclusive, of this act if the warranty service is performed in a timely and competent manner.
251+
252+(5) Intentionally misrepresent in any way to a purchaser of a warranted product that any warranty concerning the manufacture, performance or design of the warranted product is made by the dealer either as a warrantor or cowarrantor.
253+
254+(6) Require a dealer to make warranties to customers in any manner related to the manufacture of a warranted product.
255+
256+(b) A warrantor shall indemnify the dealer for any money paid or costs incurred by a dealer in connection with a claim or cause of action asserted against the dealer, to the extent that payment or those costs are based on the negligence or intentional conduct of the warrantor. A warrantor may not limit the obligation to indemnify described in this subsection by agreement with the dealer. The dealer shall provide a warrantor with a copy of any claim or complaint in which an allegation described in this subsection is made not later than ten days after receiving that claim or complaint.
257+
258+(c) As used in this section:
259+
260+(1) "Products" means new recreational vehicles or parts, accessories or components of new recreational vehicles; and
261+
262+(2) "Warranted products" means products subject to a warranty from a specific warrantor.
263+
264+Sec. 10. (NEW) (Effective October 1, 2010) (a) A dealer shall not:
265+
266+(1) Fail to perform predelivery inspection of products, if required, in a competent and timely manner.
267+
268+(2) If a transient customer requests service work on a recreational vehicle of a line-make that the dealer is authorized to display and sell, fail to perform any warranty service work authorized by a warrantor in a reasonably competent and timely manner without good cause.
269+
270+(3) Make a fraudulent warranty claim to a warrantor.
271+
272+(4) Misrepresent the terms of any warranty.
273+
274+(b) A dealer shall indemnify a warrantor for any money paid or costs incurred by a warrantor in connection with a claim or cause of action asserted against the warrantor, to the extent that payment or those costs are based on the negligence or intentional conduct of the dealer. A dealer may not limit the obligation to indemnify described in this subsection by agreement with the warrantor. The warrantor shall provide a dealer with a copy of any claim or complaint in which an allegation described in this subsection is made not later than ten days after receiving that claim or complaint.
275+
276+Sec. 11. (NEW) (Effective October 1, 2010) (a) If a new recreational vehicle is damaged before it is shipped to a dealer, or is damaged in transit to the dealer and the manufacturer selected the carrier or means of transportation, the dealer shall notify the manufacturer of the damage within the time period specified in the dealer agreement and shall do either of the following:
277+
278+(1) In the notice, request authorization to replace the components, parts and accessories damaged or otherwise correct the damage, from the manufacturer; or
279+
280+(2) Reject the recreational vehicle within the time period specified in the dealer agreement.
281+
282+(b) If the manufacturer refuses or fails to authorize repair of the damage not later than ten days after receiving notice under this section, or if the dealer rejects the recreational vehicle because of the damage within the time period specified in the dealer agreement, ownership of the recreational vehicle shall revert to the manufacturer.
283+
284+(c) The dealer shall exercise due care in the custody of the damaged recreational vehicle, but the dealer has no financial or other obligation with respect to that recreational vehicle.
285+
286+(d) A dealer agreement shall include a time period for inspection and rejection of damaged recreational vehicles under subsection (a) of this section that is not less than two business days after the physical delivery of the recreational vehicle to the dealer.
287+
288+(e) If a dealer determines that a new recreational vehicle has an unreasonable number of miles on its odometer at the time it is delivered to the dealer, the dealer may reject that recreational vehicle and ownership of the recreational vehicle shall revert to the manufacturer, except that if the number of miles on the odometer is less than the sum of the distance between the dealer and the manufacturer's factory or point of distribution plus one hundred miles, the dealer shall not consider the number of miles on the odometer unreasonable for purposes of this subsection.
289+
290+Sec. 12. (NEW) (Effective October 1, 2010) (a) A manufacturer shall not coerce or attempt to coerce a dealer to purchase a product or service that the dealer did not order.
291+
292+(b) A manufacturer shall not coerce or attempt to coerce a dealer to enter into any agreement with the manufacturer.
293+
294+(c) A manufacturer shall not coerce or attempt to coerce a dealer to enter into an agreement with the manufacturer or any other person that requires the dealer to submit its disputes to binding arbitration or otherwise waive its rights or responsibilities under sections 2 to 14, inclusive, of this act.
295+
296+(d) As used in this section, the term "coerce" includes, but is not limited to, (1) threatening to terminate or not renew a dealer agreement without good cause; (2) threatening to withhold line-makes or other product lines the dealer is entitled to display and sell under the dealer agreement; or (3) threatening to delay delivery of recreational vehicles as an inducement to amend the dealer agreement.
297+
298+Sec. 13. (NEW) (Effective October 1, 2010) (a) A dealer, manufacturer or warrantor injured by another party's violation of sections 2 to 14, inclusive, of this act may bring a civil action in circuit court to recover its actual damages. The court shall award attorney's fees and costs to the prevailing party in a civil action under this section.
299+
300+(b) The venue for a civil action under this section involving a dealer is the county in which the dealer's business is located. In an action involving more than one dealer, any county in which the business of any dealer that is party to the action is located is a proper venue for that action.
301+
302+(c) Before bringing a civil action under this section, the party bringing suit for an alleged violation of sections 2 to 14, inclusive, of this act shall serve a written demand for mediation on the offending party. The demand for mediation shall include a brief statement of the dispute and the relief sought by the party making the demand. The party making the demand for mediation shall serve the demand by certified mail to one of the following addresses:
303+
304+(1) In an action between a dealer and a manufacturer, the address stated in the dealer agreement between the parties.
305+
306+(2) In an action between a dealer and a warrantor that is not a manufacturer, the address stated in any agreement between the parties.
307+
308+(3) In an action between two dealers, the address of the offending dealer in the records of the Department of Motor Vehicles.
309+
310+(d) Not later than twenty days after a demand for mediation is served under subsection (c) of this section, the parties shall mutually select an independent mediator who is approved by the department, and meet with that mediator for the purpose of attempting to resolve the dispute at a location in this state selected by the mediator. The mediator may extend the date of the meeting for good cause shown by either party or if the parties agree to the extension.
311+
312+(e) The service of a demand for mediation under subsection (c) of this section tolls the time for the filing of any complaint, petition, protest, or other action under this act until representatives of both parties have met with the mediator selected under subsection (d) of this section for the purpose of attempting to resolve the dispute. If a complaint, petition, protest or other action is filed before that meeting, the court shall enter an order suspending the proceeding or action until the mediation meeting has occurred and may, if all of the parties to the proceeding or action stipulate, in writing, that they wish to continue to mediate under this section, enter an order suspending the proceeding or action for as long a period as the court considers appropriate. The court may modify, extend or revoke a suspension order issued under this subsection if it considers that action appropriate.
313+
314+(f) Each of the parties to the mediation under this section is responsible for its own attorney fees. The parties shall equally divide the cost of the mediator.
315+
316+Sec. 14. (NEW) (Effective October 1, 2010) (a) In addition to any remedy available under sections 2 to 14, inclusive, of this act or otherwise available by law, a manufacturer, warrantor or dealer may apply to a circuit court for the grant, after a hearing and for cause shown, of a temporary or permanent injunction or other equitable relief restraining any person from doing any of the following:
317+
318+(1) Acting as a dealer without a proper license.
319+
320+(2) Violating or continuing to violate any provision of sections 2 to 14, inclusive, of this act. A single violation of sections 2 to 14, inclusive, of this act is a sufficient basis for the court to grant equitable relief under this section.
321+
322+(3) Failing or refusing to comply with any requirement of sections 2 to 14, inclusive, of this act.
323+
324+(b) The court may not require a bond as a condition to the grant of equitable relief under this section.
17325
18326
19327
20328
21329 This act shall take effect as follows and shall amend the following sections:
22-Section 1 from passage New section
330+Section 1 October 1, 2010 New section
331+Sec. 2 October 1, 2010 New section
332+Sec. 3 October 1, 2010 New section
333+Sec. 4 October 1, 2010 New section
334+Sec. 5 October 1, 2010 New section
335+Sec. 6 October 1, 2010 New section
336+Sec. 7 October 1, 2010 New section
337+Sec. 8 October 1, 2010 New section
338+Sec. 9 October 1, 2010 New section
339+Sec. 10 October 1, 2010 New section
340+Sec. 11 October 1, 2010 New section
341+Sec. 12 October 1, 2010 New section
342+Sec. 13 October 1, 2010 New section
343+Sec. 14 October 1, 2010 New section
23344
24345 This act shall take effect as follows and shall amend the following sections:
25346
26347 Section 1
27348
28-from passage
349+October 1, 2010
29350
30351 New section
31352
353+Sec. 2
32354
355+October 1, 2010
33356
34-TRA Joint Favorable Subst.
357+New section
35358
36-TRA
359+Sec. 3
37360
38-Joint Favorable Subst.
361+October 1, 2010
362+
363+New section
364+
365+Sec. 4
366+
367+October 1, 2010
368+
369+New section
370+
371+Sec. 5
372+
373+October 1, 2010
374+
375+New section
376+
377+Sec. 6
378+
379+October 1, 2010
380+
381+New section
382+
383+Sec. 7
384+
385+October 1, 2010
386+
387+New section
388+
389+Sec. 8
390+
391+October 1, 2010
392+
393+New section
394+
395+Sec. 9
396+
397+October 1, 2010
398+
399+New section
400+
401+Sec. 10
402+
403+October 1, 2010
404+
405+New section
406+
407+Sec. 11
408+
409+October 1, 2010
410+
411+New section
412+
413+Sec. 12
414+
415+October 1, 2010
416+
417+New section
418+
419+Sec. 13
420+
421+October 1, 2010
422+
423+New section
424+
425+Sec. 14
426+
427+October 1, 2010
428+
429+New section
430+
431+Statement of Purpose:
432+
433+To regulate recreational vehicle franchises.
434+
435+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]