Louisiana Senate Bill SB222

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/28/10
• Engrossed: 5/17/10
• Refer: 5/18/10
• Report Pass: 6/2/10

Caption

Provides relative to the relationship of automobile manufacturers and dealers. (8/15/10)

Impact

The impact of SB222 is significant as it provides stronger protections for automobile dealers from potential abuses by manufacturers and distributors. By explicitly prohibiting specific coercive behaviors, the bill aims to level the playing field for dealerships and ensure they can operate without undue pressure from larger entities. This change seeks to protect the rights of licensees and promote fair practices within the automotive industry, ultimately benefiting both small and larger dealerships by fostering a more equitable market environment.

Summary

Senate Bill 222 aims to amend existing regulations governing the relationship between automobile manufacturers and dealers. It introduces additional unauthorized acts that manufacturers and related entities may not engage in, specifically concerning their behavior towards motor vehicle dealers or licensees. Notably, the bill makes it illegal for these parties to induce or coerce licensees into unfavorable real estate agreements or to influence their relationship with landlords in a manner that adversely affects the licensees' operational status or financial viability. This legislative change is set to take effect on August 15, 2010.

Sentiment

Overall, the sentiment around SB222 appears positive among dealer representatives and consumer advocacy groups, who view the bill as a necessary step towards enhancing consumer protections and promoting fairness in the automobile market. Stakeholders have largely welcomed the bill, suggesting that it addresses long-standing issues related to the power dynamics between manufacturers and dealers. However, there may be concerns from manufacturers regarding the potential limitations on their ability to manage dealership agreements effectively.

Contention

While there is support for SB222, some points of contention may arise from the manufacturers and industry associations who might perceive the regulations as overly restrictive or detrimental to their business practices. The tension between promoting dealer autonomy and manufacturer oversight could lead to ongoing debates about how best to foster a collaborative and fair relationship within the automotive industry. If passed, this bill could reshape the dynamics of the dealer-manufacturer relationship, necessitating adaptation from both sides to align with the new legal framework.