SLS 12RS-691 ORIGINAL
Page 1 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 360
BY SENATOR MARTINY AND REPRESENTATIVE PONTI
COMMERCIAL REGULATIONS. Provides for distribution and sale of marine products,
motorcycles, all-terrain vehicles, and recreational vehicles. (8/1/12)
AN ACT1
To amend and reenact R.S. 32:1252(4), (19) and (23), 1254(C)(12), (D)(4)(b) and (7),2
(E)(4), (9)(b), and (11), 1258(A)(10) and (E), 1260(B)(1) through (3), 1261, 1261.1,3
and 1263, to enact R.S. 32:1252(52) through (78), 1262(C), 1267(C), 1268(D), and4
Parts II, III, and IV of Chapter 6 of Title 32 of the Louisiana Revised Statutes of5
1950, to be comprised of R.S. 32:1270 through 1270.32, and to repeal R.S. 32:1257.16
and 1268.1, relative to marine products, motorcycles, all-terrain vehicles, and7
recreational vehicles; to provide for certain terms, conditions, requirements, and8
procedures; to provide for definitions; to provide for the establishment of new9
dealerships and the relocation of existing dealerships; to provide for payment to10
dealers; to provide for unauthorized acts; to provide for warranty agreements and11
application thereof; to provide for the sale and leasing of certain marine products,12
motorcycles, all-terrain vehicles, and recreational vehicles; to provide for the13
succession of a dealer; to provide for the procedure to terminate a dealership; to14
provide for the repurchase of certain products, equipment, parts, and tools; to provide15
relative to conflicts of laws; and to provide for related matters.16
Be it enacted by the Legislature of Louisiana:17 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 2 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Section 1. R.S. 32:1252(4), (19) and (23), 1254(C)(12), (D)(4)(b) and (7), (E)(4),1
(9)(b), and (11), 1258(A)(10) and (E), 1260(B)(1) through (3), 1261, 1261.1, and 1263 are2
hereby amended and reenacted and R.S. 32:1252(52) through (78), 1262(C), 1267(C),3
1268(D), and Parts II, III, and IV of Chapter 6 of Title 32 of the Louisiana Revised Statutes4
of 1950, to be comprised of R.S. 32:1270 through 1270.32 are hereby enacted to read as5
follows:6
§1252. Definitions7
The following words, terms, and phrases, when used in this Chapter, shall8
have the meanings respectively ascribed to them in this Section, except where the9
context clearly indicates a different meaning:10
* * *11
(4) "Boat package" means a boat that is equipped from its manufacturer or12
distributor with an inboard, outboard, or inboard/outboard motor or engine attached13
thereto, installed thereon, or shipped or invoiced together as a package. The boat14
package may include a trailer invoiced from the manufacturer. For the purposes15
of this Chapter, the boat package brand shall be determined by the brand of the boat.16
* * *17
(19) "Franchise" means any written contract or agreement between a motor18
vehicle or recreational products dealer, a motor vehicle lessor, or a specialty vehicle19
dealer and a manufacturer, motor vehicle lessor franchisor, or converter of a new20
motor vehicle or specialty vehicle or its distributor or factory branch by which the21
motor vehicle or recreational products dealer, motor vehicle lessor, or specialty22
vehicle dealer is authorized to engage in the business of selling or leasing the23
specific makes, models, or classifications of new motor vehicles, recreational24
products, or specialty vehicles marketed or leased by the manufacturer, motor25
vehicle lessor franchisor, or converter and designated in the franchise agreement or26
any addendum thereto. For purposes of this Chapter, any written modification,27
amendment, or addendum to the original franchise agreement, which changes the28
rights and obligations of the parties to the original franchise agreement, shall29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 3 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
constitute a new franchise agreement, effective as of the date of the modification,1
amendment, or addendum. For the purposes of this definition only, the term2
"recreational products dealer" shall exclude marine dealers.3
* * *4
(23) "Marine dealer" means any person who holds a bona fide contract or5
franchise or selling agreement with a manufacturer or distributor of marine6
products, except for a person engaged in the business of renting or selling new or7
used watercraft or boats adapted to be powered only by an occupant's energy, and8
who holds a license as a marine dealer under the provisions of this Chapter.9
* * *10
(52)(a) "Marine product lessor" shall mean any person, not excluded by11
Subparagraph (b) of this Paragraph, engaged in the marine products leasing or12
rental business and who holds a license as a motor vehicle lessor under the13
provisions of this Chapter. It shall also include a subsidiary of any such entity.14
(b) The term "marine product lessor" does not include any of the15
following:16
(i) Receivers, trustees, administrators, executors, guardians, or other17
persons appointed by or acting under judgment or order of any court.18
(ii) Public officers while performing or in the operation of their duties.19
(iii) Employees of persons, corporations, or associations enumerated in20
Item (i) of this Subparagraph when engaged in the specific performance of their21
duties as such employees.22
(iv) Financial institutions engaged in the leasing of marine products.23
(c) Any marine product lessor who rents on a daily basis marine24
products not of the current year or immediate prior year models that have been25
titled previously to an ultimate purchaser, and who is otherwise not required26
to obtain a license under this Chapter, shall be subject to the regulation of the27
Louisiana Used Motor Vehicle Commission.28
(53) "Marine product lessor agent" means any natural person, other29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 4 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
than a daily rental person, who holds a license as a motor vehicle lessor agent1
under the provisions of this Chapter and is employed by a marine product2
lessor licensed by the commission whose duties include the leasing, renting or3
offering for lease or rent marine products on behalf of said marine product4
lessor.5
(54) "Marine product lessor manufacturer or distributor" means any6
person who is licensed as a motor vehicle lessor franchisor under the provisions7
of this Chapter and grants a selling agreement to any person granting the right8
to lease or rent a marine product under its trade name, trademark, or service9
mark or to sell used marine products formerly a part of its rental fleet.10
(55) "Marine product salesman" means any natural person employed11
by a licensee of the commission whose duties include the selling, leasing, or12
offering for sale or lease, financing or insuring marine products on behalf of13
said licensee and who holds a motor vehicle salesman license under the14
provisions of this Chapter.15
(56) "New marine product" means a marine product, the legal title to16
which has never been transferred by a manufacturer, distributor, or dealer to17
an ultimate purchaser.18
(57) "Selling agreement" means any written contract or agreement19
between a marine dealer and a manufacturer, or its distributor or factory20
branch, by which the marine dealer is authorized to engage in the business of21
selling or leasing the specific makes, models, or classifications of marine22
products marketed or leased by the manufacturer, and designated in the selling23
agreement or any addendum thereto. For the purposes of this Paragraph, any24
written modification, amendment, or addendum to the original selling25
agreement that changes the rights and obligations of the parties to the original26
selling agreement shall constitute a new selling agreement, effective as of the27
date of the modification, amendment, or addendum.28
(58) "Used marine product" means a marine product, the legal title of29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 5 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
which has been transferred by a manufacturer, distributor, or dealer to an1
ultimate purchaser.2
(59)(a) "Used marine product dealer" means any person, whose business3
is to sell, or offer for sale, display, or advertise used marine products, or any4
person who holds a license from the commission and is not excluded by5
Subparagraph (b) of this Paragraph.6
(b) "Used marine dealer" shall not include any of the following:7
(i) Receivers, trustees, administrators, executors, guardians, or other8
persons appointed by or acting under the judgment or order of any court.9
(ii) Public officers while performing their official duties.10
(iii) Employees of persons, corporations, or associations enumerated in11
the definition of "used marine dealer" when engaged in the specific12
performance of their duties as such employees.13
(iv) Mortgagees or secured parties as to sales of marine products14
constituting collateral on a mortgage or security agreement and who do not15
maintain a used car lot or building with one or more employed marine product16
salesman.17
(v) Insurance companies who sell motor vehicles to which they have18
taken title as an incident of payments made under policies of insurance and who19
do not maintain a used car lot or building with one or more employed marine20
product salesman.21
(vi) Used motor vehicle dealers licensed pursuant to R.S. 32:781 et seq.22
(60) "Used marine product facility" means any facility which is owned23
and operated by a licensee of the commission and offers for sale used marine24
products.25
(61) "Motorcycle or all-terrain vehicle dealer" means any person who,26
for a commission or with intent to make a profit or gain of money or other thing27
of value, buys, sells, brokers, exchanges, auctions, offers, or attempts to28
negotiate a sale or exchange of an interest in motorcycles or all-terrain vehicles29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 6 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
and who is engaged wholly or in part in the business of buying and selling1
motorcycles or all-terrain vehicles in the state of Louisiana and who holds a2
license as a recreational products dealer under the provisions of this Chapter.3
(a) The term shall also include anyone not licensed under Chapter 6 of4
Title 32 of the Louisiana Revised Statutes of 1950, who sells motorcycles or all-5
terrain vehicles and who rents on a daily basis motorcycles or all-terrain6
vehicles, not of the current year or immediate prior year models, that have been7
titled previously to an ultimate purchaser.8
(b) "Motorcycle or all-terrain vehicle dealer" shall not include any of9
the following:10
(i) Receivers, trustees, administrators, executors, guardians, or other11
persons appointed by or acting under the judgment or order of any court.12
(ii) Public officers while performing their official duties.13
(iii) Employees of motorcycle or all-terrain vehicle dealers when engaged14
in the specific performance of their duties of such employees.15
(iv) Mortgagees or secured parties as to sales of motorcycles or all-16
terrain vehicles constituting collateral on a mortgage or security agreement.17
(v) Insurance companies.18
(vi) Auctioneers or auction houses who are not engaged in the auction19
of motorcycles or all-terrain vehicles as the principal part of their business,20
including but not limited to the following auctions: estate auctions, bankruptcy21
auctions, farm equipment auctions, or government auctions.22
(62)(a) "Motorcycle or all-terrain vehicle lessor" shall mean any person,23
not excluded by Subparagraph (b) of this Paragraph, engaged in the motorcycle24
or all-terrain vehicle leasing or rental business and who holds a license as a25
motor vehicle lessor under the provisions of this Chapter. It shall also include26
a subsidiary of any such entity.27
(b) The term "motorcycle or all-terrain vehicle lessor" does not include28
any of the following:29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 7 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(i) Receivers, trustees, administrators, executors, guardians, or other1
persons appointed by or acting under judgment or order of any court.2
(ii) Public officers while performing or in the operation of their duties.3
(iii) Employees of persons, corporations, or associations enumerated in4
Item (i) of this Subparagraph when engaged in the specific performance of their5
duties as such employees.6
(iv) Financial institutions engaged in the leasing of motorcycles or all-7
terrain vehicles.8
(c) Any motorcycle or all-terrain vehicle lessor who rents on a daily basis9
motorcycles or all-terrain vehicles not of the current year or immediate prior10
year models that have been titled previously to an ultimate purchaser, and who11
is otherwise not required to obtain a license under this Chapter, shall be subject12
to the regulation of the Louisiana Used Motor Vehicle Commission.13
(63) "Motorcycle or all-terrain vehicle lessor agent" means any natural14
person, other than a daily rental person, who holds a license as a motor vehicle15
lessor agent under the provisions of this Chapter and is employed by a16
motorcycle or all-terrain vehicle lessor licensed by the commission whose duties17
include the leasing, renting or offering for lease or rent motorcycles or all-18
terrain vehicles on behalf of said motorcycle or all-terrain vehicle lessor.19
(64) "Motorcycle or all-terrain vehicle lessor franchisor" means any20
person who holds a license as a motor vehicle lessor franchisor under the21
provisions of this Chapter and grants a franchise to any person granting the22
right to lease or rent a motorcycle or all-terrain vehicle under its trade name,23
trademark, or service mark or to sell used motorcycle or all-terrain vehicles24
formerly a part of its rental fleet.25
(65) "Motorcycle or all-terrain vehicle salesman" means any natural26
person employed by a licensee of the commission whose duties include the27
selling, leasing, or offering for sale or lease, financing or insuring motorcycle or28
all-terrain vehicles on behalf of said licensee and who holds a motor vehicle29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 8 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
salesman under the provisions of this Chapter.1
(66) "New motorcycle or all-terrain vehicle" means a motorcycle or all-2
terrain vehicle, the legal title to which has never been transferred by a3
manufacturer, distributor, or dealer to an ultimate purchaser.4
(67) "Used motorcycle or all-terrain vehicle" means a motorcycle or all-5
terrain vehicle, the legal title of which has been transferred by a manufacturer,6
distributor, or dealer to an ultimate purchaser.7
(68)(a) "Used motorcycle or all-terrain vehicle dealer" means any8
person, whose business is to sell, or offer for sale, display, or advertise used9
motorcycles or all-terrain vehicles, or any person who holds a license from the10
commission and is not excluded by Subparagraph (b) of this Paragraph.11
(b) "Used motorcycle or all-terrain vehicle dealer" shall not include any12
of the following:13
(i) Receivers, trustees, administrators, executors, guardians, or other14
persons appointed by or acting under the judgment or order of any court.15
(ii) Public officers while performing their official duties.16
(iii) Employees of persons, corporations, or associations enumerated in17
the definition of "used motorcycle or all-terrain vehicle dealer" when engaged18
in the specific performance of their duties as such employees.19
(iv) Mortgagees or secured parties as to sales of motorcycles or all-20
terrain vehicles constituting collateral on a mortgage or security agreement and21
who do not maintain a used car lot or building with one or more employed22
motorcycle or all-terrain vehicle salesman.23
(v) Insurance companies who sell motorcycles or all-terrain vehicles to24
which they have taken title as an incident of payments made under policies of25
insurance and who do not maintain a used car lot or building with one or more26
employed motorcycle or all-terrain vehicle salesman.27
(vi) Used motorcycle or all-terrain vehicle dealers licensed pursuant to28
R.S. 32:781 et seq.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 9 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(69) "Used motorcycle or all-terrain vehicle facility" means any facility1
which is owned and operated by a licensee of the commission and offers for sale2
used motorcycles or all-terrain vehicles.3
(70) "New recreational vehicle" means a recreational vehicle, the legal4
title to which has never been transferred by a manufacturer, distributor, or5
dealer to an ultimate purchaser.6
(71) "Recreational vehicle dealer" means any person who, for a7
commission or with intent to make a profit or gain of money or other thing of8
value, buys, sells, brokers, exchanges, auctions, offers, or attempts to negotiate9
a sale or exchange of an interest in recreational vehicles and who is engaged10
wholly or in part in the business of buying and selling recreational vehicles in11
the state of Louisiana and who holds a license as a recreational products dealer12
under the provisions of this Chapter.13
(a) The term shall also include anyone not licensed under Chapter 6 of14
Title 32 of the Louisiana Revised Statutes of 1950, who sells recreational15
vehicles and who rents on a daily basis recreational vehicles, not of the current16
year or immediate prior year models, that have been titled previously to an17
ultimate purchaser.18
(b) "Recreational vehicle dealer" shall not include any of the following:19
(i) Receivers, trustees, administrators, executors, guardians, or other20
persons appointed by or acting under the judgment or order of any court.21
(ii) Public officers while performing their official duties.22
(iii) Employees of recreational vehicle dealers when engaged in the23
specific performance of their duties as such employees.24
(iv) Mortgagees or secured parties as to sales of recreational vehicles25
constituting collateral on a mortgage or security agreement.26
(v) Insurance companies.27
(vi) Auctioneers or auction houses who are not engaged in the auction of28
recreational vehicles as the principal part of their business, including but not29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 10 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
limited to the following auctions: estate auctions, bankruptcy auctions, farm1
equipment auctions, or government auctions.2
(72)(a) "Recreational vehicle lessor" shall mean any person, not3
excluded by Subparagraph (b) of this Paragraph, engaged in the recreational4
vehicle leasing or rental business and who holds a license as a motor vehicle5
lessor under the provisions of this Chapter. It shall also include a subsidiary of6
any such entity.7
(b) The term "recreational vehicle lessor" does not include any of the8
following:9
(i) Receivers, trustees, administrators, executors, guardians, or other10
persons appointed by or acting under judgment or order of any court.11
(ii) Public officers while performing or in the operation of their duties.12
(iii) Employees of persons, corporations, or associations enumerated in13
Item (i) of this Subparagraph when engaged in the specific performance of their14
duties as such employees.15
(iv) Financial institutions engaged in the leasing of recreational vehicles.16
(c) Any recreational vehicle lessor who rents on a daily basis recreational17
vehicles not of the current year or immediate prior year models that have been18
titled previously to an ultimate purchaser, and who is otherwise not required19
to obtain a license under this Chapter, shall be subject to the regulation of the20
Louisiana Used Motor Vehicle Commission.21
(73) "Recreational vehicle lessor agent" means any natural person, other22
than a daily rental person, who holds a license as a motor vehicle lessor agent23
under the provisions of this Chapter and is employed by a recreational vehicle24
lessor licensed by the commission whose duties include the leasing, renting or25
offering for lease or rent recreational vehicles on behalf of said motor vehicle26
lessor.27
(74) "Recreational vehicle lessor franchisor" means any person who is28
licensed as a motor vehicle lessor franchisor under the provisions of this29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 11 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Chapter and grants a franchise to any person granting the right to lease or rent1
a recreational vehicle under its trade name, trademark, or service mark or to2
sell used recreational vehicles formerly a part of its rental fleet.3
(75) "Recreational vehicle salesman" means any natural person4
employed by a licensee of the commission whose duties include the selling,5
leasing, or offering for sale or lease, financing or insuring recreational vehicles6
on behalf of said licensee and who holds a motor vehicle salesman license under7
the provisions of this Chapter.8
(76) "Used recreational vehicle" means a recreational vehicle, the legal9
title of which has been transferred by a manufacturer, distributor, or dealer to10
an ultimate purchaser.11
(77)(a) "Used recreational vehicle dealer" means any person, whose12
business is to sell, or offer for sale, display, or advertise used recreational13
vehicles, or any person who holds a license from the commission and is not14
excluded by Subparagraph (b) of this Paragraph.15
(b) "Used recreational vehicle dealer" shall not include any of the16
following:17
(i) Receivers, trustees, administrators, executors, guardians, or other18
persons appointed by or acting under the judgment or order of any court.19
(ii) Public officers while performing their official duties.20
(iii) Employees of persons, corporations, or associations enumerated in21
the definition of "used recreational vehicle dealer" when engaged in the specific22
performance of their duties as such employees.23
(iv) Mortgagees or secured parties as to sales of recreational vehicles24
constituting collateral on a mortgage or security agreement and who do not25
maintain a used car lot or building with one or more employed recreational26
vehicle salesman.27
(v) Insurance companies who sell recreational vehicles to which they28
have taken title as an incident of payments made under policies of insurance29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 12 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
and who do not maintain a used car lot or building with one or more employed1
recreational vehicle salesman.2
(vi) Used recreational vehicle dealers licensed pursuant to R.S. 32:781 et3
seq.4
(78) "Used recreational vehicle facility" means any facility which is5
owned and operated by a licensee of the commission and offers for sale used6
recreational vehicles.7
* * *8
§1254. Application for license; requirements for licensure; contents; licenses;9
franchise filings10
* * *11
C. General licensing and compliance requirements for all license applicants12
and holders:13
* * *14
(12) At least sixty days prior to the receipt by the commission of an15
application by a licensee for the establishment of new location required to be16
licensed under the provisions of this Chapter, for a change of location, change in17
corporate ownership or majority ownership, change in the name of licensee, change18
in the makes, models, or classifications of vehicles designated in the franchise or19
selling agreement or any addendum thereto and manufactured, distributed, or sold,20
the addition of makes, models, or classifications of vehicles designated in the21
franchise or selling agreement or any addendum thereto and manufactured,22
converted, distributed, or sold, or a change in the identity of the designated dealer-23
operator of a licensee the commission must receive a written notice from the person24
seeking to effect such change. This sixty-day notice shall provide such information25
as the commission in its discretion may require. The sixty-day notice may be waived26
by the commission, when, in its discretion, the commission feels that such waiver27
would be in the best interest of the public welfare.28
D. Additional licensing and compliance requirements for manufacturers,29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 13 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
distributors, wholesalers, converters or secondary manufacturers, distributors or1
wholesalers, factory branches and distributor branches:2
* * *3
(4)(a) * * *4
(b) A change of location, or a change in corporate ownership or majority5
ownership, or a change in the name of a licensee, or a change by a licensee in the6
makes, models, or classifications, requiring an addendum to a franchise agreement7
or selling agreement, of motor vehicles, recreational products, or specialty vehicles8
manufactured, distributed, or converted, or the addition of a make of motor vehicle9
or recreational product manufactured, distributed, or converted shall require a new10
license and application therefor.11
* * *12
(7) Upon execution of a franchise or selling agreement, or addendum13
thereto, with a motor vehicle dealer, recreational products dealer, or specialty vehicle14
dealer, the manufacturer, distributor, wholesaler, or a convertor or secondary15
manufacturer shall immediately file with the commission a copy of the franchise or16
selling agreement or addendum.17
E. Additional licensing and compliance requirements for motor vehicle and18
recreational products dealers.19
* * *20
(4)(a) Applications for license as motor vehicle and recreational products21
dealer must, in addition to the foregoing, also be accompanied by the filing with the22
commission of a bona fide contract or franchise or selling agreement in effect23
between the applicant and a manufacturer or distributor of the new motor vehicle or24
vehicles or recreational product or products proposed to be dealt in for a specific25
location in the state of Louisiana.26
(b) However, if such contract or franchise or selling agreement has already27
been filed with the commission in connection with a previous application made by28
such applicant, in which event the applicant shall, in lieu of again filing the contract29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 14 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
or franchise or selling agreement, identify same by appropriate reference and file1
all revisions and additions, if any, which have been made to said contract or2
franchise or selling agreement.3
* * *4
(9)(a) * * *5
(b) A change of location, or a change in corporate ownership or majority6
ownership, or a change in the name of a licensee, or a change by a licensee in the7
makes, models, or classifications, requiring an addendum to a franchise agreement8
or selling agreement, of motor vehicles or recreational products sold, or the addition9
of a make of motor vehicles or recreational products sold or a change in the10
designation of the dealer-operator shall require a new license and application11
therefor.12
* * *13
(11) Upon execution of a franchise or selling agreement, or addendum14
thereto, the motor vehicle or recreational product dealer shall immediately file with15
the commission a copy of the franchise or selling agreement, or addendum thereto.16
* * *17
§1258. Denial, revocation, grounds, imposition of a civil penalty, or suspension of18
license; grounds; expiration19
A. The commission may, in addition to imposing a civil penalty under the20
provisions of this Chapter, deny an application for a license, or revoke or suspend a21
license after it has been granted for any one of the following reasons:22
* * *23
(10) Whenever a marine dealer intentionally removes marine engines from24
a boat package for the purpose of selling those engines separately in violation of a25
full-line marine engine dealer's area of responsibility, except that which may be done26
by a full-line dealer of that particular engine as it may be permitted under his full-27
line franchise or selling agreement.28
* * *29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 15 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
E. All licenses shall be granted or refused within thirty days after application1
therefor, and shall expire as provided in this Chapter, unless sooner revoked or2
suspended, except that where a complaint of unfair cancellation of a dealer franchise3
or selling agreement is in process of being heard, no replacement application for4
such franchise or selling agreement shall be considered until a decision is rendered5
by the commission.6
* * *7
§1260. Penalties; other relief8
* * *9
B.(1) In addition to the penalties provided under this Chapter, the10
commission is expressly empowered and authorized to order the renewal or11
reinstatement, as the case may be, of any franchise or selling agreement of a12
licensee which, after following the procedures under this Chapter, is found by the13
commission to have been unfairly cancelled or not renewed due to lack of just14
provocation or cause.15
(2) The commission's authority to order a renewal or reinstatement, as the16
case may be, shall be consistent with the terms of the unfairly canceled franchise or17
selling agreement.18
(3) The commission shall order the renewal for an additional full franchise19
or selling agreement term or reinstatement for the remaining term of the franchise20
or selling agreement, as the case may be, under the franchise or selling agreement.21
* * *22
§1261. Unauthorized acts23
A. It shall be a violation of this Chapter:24
* * *25
B. The provisions of this Section shall not apply to a dealer,26
manufacturer, distributor, wholesaler, distributor branch, factory branch, or27
convertor of marine products, motorcycles or all-terrain vehicles, or28
recreational vehicles, or any officer, agent, or other representative thereof.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 16 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
§1261.1. Indemnification of franchised dealers1
A. Notwithstanding the terms of any franchise or selling agreement, each2
manufacturer or converter shall indemnify and hold harmless its franchised dealers3
or dealers against any judgment for damages, including but not limited to court costs4
and reasonable attorney fees of the dealer, arising out of complaints, claims, or5
lawsuits including but not limited to strict liability, negligence, misrepresentation,6
express or implied warranty, or rescission of sale to the extent that the judgment7
arises out of alleged defective or negligent manufacture, assembly, or design of8
motor vehicles, speciality vehicle, recreational product, parts, or accessories, or other9
functions by the manufacturer of converter, which are beyond the control of the10
dealer.11
B. The provisions of this Section shall not apply to a franchised12
recreational vehicle dealer.13
§1262. Warranty; compensation; audits of dealer records14
* * *15
C. The provisions of this Section shall not apply to a dealer,16
manufacturer, distributor, wholesaler, distributor branch, or factory branch of17
marine products, motorcycles or all-terrain vehicles, or recreational vehicles,18
or any officer, agent, or other representative thereof.19
§1263. Motor vehicle repairs20
A. Suppliers of mechanical repairs and services for any vehicle subject to21
regulation pursuant to this Chapter shall provide each consumer with an itemized bill22
indicating repairs and services performed, parts replaced, or materials used, the total23
labor charge, and the identity of the mechanic, repairman, or supplier who performed24
the work. However, nothing in this Section shall prohibit a supplier of mechanical25
repairs and services from charging a service fee for the use of shop supplies such as26
rags, fender covers, small amounts of fluid, or other items which are not itemized,27
provided that such fee does not exceed five percent of the total invoice for28
mechanical repairs or thirty-five dollars, whichever is less.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 17 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
B. The provisions of this Section shall not apply to suppliers of1
mechanical repairs and services for any recreational vehicle subject to2
regulation of this Chapter.3
* * *4
§1267. Succession; right of first refusal5
* * *6
C. The provisions of this Section shall not apply to the succession of any7
marine dealer, motorcycle or all-terrain vehicle, or recreational vehicle.8
§1268. Requirements upon termination; penalty; indemnity9
* * *10
D. Notwithstanding any provision of law to the contrary, the provisions11
of this Section shall not apply to a marine dealer, motorcycle or all-terrain12
vehicle dealer, or recreational vehicle dealer.13
* * *14
PART II. PROVISIONS SPECIFIC TO MARINE PRODUCTS15
§1270. Establishment of new marine dealerships or relocations; protests;16
procedure17
A. Whenever the commission receives an application for a recreational18
products dealer's license which would add a new marine dealership, it shall first19
notify the existing licensed marine dealership or dealerships selling the same-20
line makes, models, or classifications if the new dealership's proposed location21
is within the existing dealer's area of responsibility. Any same-line makes,22
models, or classifications dealership whose area of responsibility includes the23
location of the proposed new marine dealership may object to the granting of24
the license.25
B. Whenever the commission receives an application for a recreational26
products dealer's license which would relocate an existing marine dealership,27
it shall first notify the existing licensed marine dealership or dealerships selling28
the same-line makes, models, or classifications if the dealership's proposed new29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 18 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
location is within the existing dealer's area of responsibility. The existing same-1
line makes, models, or classifications dealership or dealerships shall have the2
right to object to the granting of the license only if the proposed relocation is3
within a radius of seven miles of its facility. However, without regard to4
distance, whenever the commission receives an application for the relocation of5
a marine dealership which would add an additional marine dealership to an6
existing same-line makes, models, or classifications dealership's area of7
responsibility, the affected dealership shall have the right to object.8
C. The objection shall be in writing and shall be received by the9
commission within a fifteen-day period after receipt of the notice. The fifteen-10
day objection period shall be waived upon written notification to the11
commission from all licensees entitled to object that the licensees have no12
objections to the proposed change or addition for which the notice of intent was13
issued. If timely objection is lodged, and prior to the issuance of the license, the14
commission shall hold a hearing within thirty days after receipt of the objection15
and issue its decision within ninety days after date of the hearing. Notice of16
hearing and an opportunity to participate therein shall be given to the17
manufacturer or distributor, the applicant for the license as a marine dealer,18
and to the protesting dealership or dealerships.19
D. Whenever the commission receives an objection pursuant to the20
provisions of Subsection A of this Section, or whenever the commission receives21
an objection pursuant to the assignment of the marine dealer's area of principal22
sales and service responsibility, the commission shall consider the following and23
may consider any other relevant factors in determining whether there is good24
cause to approve or reject the assignment of the marine dealer's area of25
principal sales and service responsibility, or to issue a license:26
(1) Whether the community or territory can support an additional27
marine dealership.28
(2) The financial impact on both the applicant and the existing marine29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 19 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
dealership or dealerships.1
(3) Whether the existing marine dealerships of the same-line makes,2
models, or classifications in the dealership's area of responsibility are providing3
adequate representation, competition, and convenient consumer care for the4
marine products of the same-line makes, models, or classifications located5
within that area.6
(4) Whether the issuance of the license would increase competition, be7
in the public interest, or both.8
E. In disputes between the marine dealers and manufacturers and9
distributors regarding the execution of an agreement that would add a new10
same-line make marine dealership or would add the same product line11
regardless of brand name within the area of responsibility of an existing marine12
dealer, the name brand of the boat determines whether a dealer may enter into13
a selling agreement for a particular boat package or boat package line. The14
marine motor, marine engine, boat trailer, or any accessory made a part of a15
boat package shall not be the subject of, or a consideration in, an area of16
responsibility dispute for violation involving the boat package.17
F. A manufacturer or distributor of a marine motor or marine engine18
may, in their discretion, enter into a warranty service agreement with a marine19
dealer of a boat package that is packaged with its particular brand marine20
motor or engine without violating the area of responsibility of any other marine21
dealer that has a selling agreement of that brand marine motor or engine.22
However, the warranty service agreement shall not be construed to permit the23
marine dealer to sell the marine motor or engine separate from the boat24
package, and the marine dealer shall not hold itself out to be a full-line or loose25
marine motor or engine dealership.26
§1270.1. Unauthorized acts; marine products27
It shall be a violation of this Part:28
(1) For a manufacturer, a distributor, a wholesaler, distributor branch,29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 20 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
or factory branch of marine products or any officer, agent, or other1
representative thereof:2
(a) To induce or coerce, or attempt to induce or coerce, any licensee.3
(i) To order or accept delivery of any marine product, appliances,4
equipment, parts or accessories therefor, or any other commodity or5
commodities which shall not have been voluntarily ordered.6
(ii) To order for any person any parts, accessories, equipment,7
machinery, tools, appliances, or any commodity whatsoever.8
(iii) To assent to a release, assignment, novation, waiver, or estoppel9
which would relieve any person from liability to be imposed by law, unless done10
in connection with a settlement agreement to resolve a matter pending a11
commission hearing or pending litigation between a manufacturer, distributor,12
wholesaler, distributor branch or factory branch, or officer, agent, or other13
representative thereof.14
(iv) To enter into a selling agreement with a licensee or during the15
selling agreement term, use any written instrument, agreement, release,16
assignment, novation, estoppel, or waiver, to attempt to nullify or modify any17
provision of this Chapter, or to require any controversy between a marine18
dealer and a manufacturer to be referred to any person or entity other than the19
commission, or duly constituted courts of this state or the United States, if such20
referral would be binding upon the dealer. Such instruments are null and void,21
unless done in connection with a settlement agreement to resolve a matter22
pending a commission hearing or pending litigation.23
(v) To waive the right to a jury trial.24
(vi) To participate in an advertising group or to participate monetarily25
in an advertising campaign or contest or to purchase any promotional26
materials, showroom, or other display decorations or materials at the expense27
of such marine dealer.28
(vii) To adhere to performance standards that are not applied uniformly29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 21 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to other similarly situated marine dealers. Any such performance standards1
shall be fair, reasonable, equitable, and based on accurate information. If2
marine dealership performance standards are based on a survey, the3
manufacturer, distributor, wholesaler, distributor branch, or factory branch4
shall establish the objectivity of the survey process and provide this information5
to any marine dealer of the same-line make covered by the survey request. Each6
response to a survey used by a manufacturer in preparing an evaluation or7
performance-rating of a marine dealer shall be made available to that marine8
dealer, or it cannot be used by the manufacturer. However, if a customer9
requests that the manufacturer or distributor not disclose the consumer's10
identity to the dealer, the manufacturer may withhold the consumer's identity11
in providing the survey response to the dealer, and the manufacturer may use12
the response. Any survey used must have the following characteristics:13
(aa) It was designed by experts.14
(bb) The proper universe was examined.15
(cc) A representative sample was chosen.16
(dd) The data was accurately reported.17
(viii) To release, convey, or otherwise provide customer information, if18
to do so is unlawful or if the customer objects in writing. This does not include19
information that is necessary for the manufacturer to meet its obligations to the20
marine dealer or consumers in regard to contractual responsibilities, marine21
product recalls, or other requirements imposed by state or federal law. The22
manufacturer is further prohibited from providing any consumer information23
received from the marine dealer to any unaffiliated third party.24
(ix) To pay the attorney fees of the manufacturer or distributor related25
to hearings and appeals brought under this Chapter.26
(b) To refuse to deliver to any licensee having a selling agreement or27
contractual arrangement for the retail sale of marine products sold or28
distributed by such manufacturer, distributor, wholesaler, distributor branch29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 22 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
or factory branch, any marine product, publicly advertised for immediate1
delivery, within sixty days after such marine dealer's order shall have been2
received.3
(c) To threaten to cancel any selling agreement existing between such4
manufacturer, distributor, wholesaler, distributor branch or factory branch5
and said marine dealer for any reason.6
(d) To unfairly, without just cause and due regard to the equities of the7
marine dealer, cancel the selling agreement of the licensee. The nonrenewal of8
a selling agreement with a marine dealer or his successor without just9
provocation or cause, or the refusal to approve a qualified transferee or10
qualified successor to the dealer-operator as provided for in the selling11
agreement, shall be deemed an evasion of this Subparagraph and shall12
constitute an unfair cancellation, regardless of the terms or provisions of such13
selling agreement. However, at least ninety days notice shall be given to the14
dealer of a cancellation or nonrenewal of a selling agreement except for a15
cancellation arising out of fraudulent activity of the dealer principal which16
results in the conviction of a crime punishable by imprisonment.17
(e) To refuse to extend to a licensee the privilege of determining the mode18
or manner of available transportation facility that such marine dealer desires19
to be used or employed in making deliveries of marine products to him or it.20
(f) To ship or sell marine products to a licensee prior to the licensee21
having been granted a license by the commission to sell such products.22
(g) To unreasonably withhold consent to the sale, transfer, or exchange23
of the dealership to a qualified transferee capable of being licensed as a marine24
dealer in this state, provided the transferee meets the criteria generally applied25
by the manufacturer in approving new marine dealers and agrees to be bound26
by all the terms and conditions of the standard selling agreements.27
(h) To fail to respond in writing to a written request for consent as28
specified in Subparagraph (g) of this Paragraph within sixty days of receipt of29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 23 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
a written request on the forms, if any, generally utilized by the manufacturer1
or distributor for such purposes and containing the information required2
therein. Failure to respond shall be deemed to be consent to the request.3
(i)(i) To sell or offer to sell a new or unused marine product directly to4
a consumer except as provided in this Chapter, or to compete with a licensee in5
the same-line makes, models, or classifications operating under an agreement6
from the aforementioned manufacturer. A manufacturer shall not, however, be7
deemed to be competing when any one of the following conditions are met:8
(aa) Operating a marine dealership temporarily for a reasonable period,9
not to exceed two years.10
(bb) Operating a bona fide retail marine dealership which is for sale to11
any qualified independent person at a fair and reasonable price, not to exceed12
two years.13
(cc) Operating in a bona fide relationship in which a person independent14
of a manufacturer has made a significant investment subject to loss in the15
marine dealership, and can reasonably expect to acquire full ownership of such16
dealership on reasonable terms and conditions.17
(ii) After any of the conditions have been met under Subitems (aa) and18
(bb) of Item (i) of this Subparagraph, the commission shall allow the19
manufacturer to compete with licensees of the same-line makes, models, or20
classifications under an agreement from said manufacturer for longer than two21
years when, in the discretion of the commission, the best interest of the22
manufacturer, consuming public, and licensees are best served.23
(j) To fail to compensate its marine dealers for the work and services24
they are required to perform in connection with the marine dealer's delivery25
and preparation obligations according to the terms of compensation that shall26
be filed with the commission on or before October first of each year. The27
commission shall find the compensation to be reasonable or the manufacturer28
shall remedy any deficiencies.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 24 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(k) To fail to designate and provide to the commission in writing the1
community or territory assigned to a licensee.2
(l) To unreasonably discriminate among competing, similarly situated,3
same-line make dealers in the sales of the marine products, in the availability4
of such marine products, in the terms of incentive programs or sales promotion5
plans, or in other similar programs.6
(m) To use any subsidiary, affiliate, or any other controlled person or7
entity, or to employ the services of a third party, to accomplish what would8
otherwise be illegal conduct under this Chapter on the part of the manufacturer9
or distributor.10
(n) To make a change in the area of responsibility described in the selling11
agreement or sales and service agreement of a dealer, without the manufacturer12
or distributor giving said marine dealer and the commission no less than sixty13
days prior written notice by certified or registered mail.14
(2) For a marine dealer, used marine product dealer, marine product15
salesman:16
(a) To require a purchaser of a marine product, as a condition of sale17
and delivery thereof, to also purchase special features, appliances, accessories,18
or equipment not desired or requested by the purchaser; however, this19
prohibition shall not apply as to special features, appliances, accessories, or20
equipment which are permanently affixed to the marine product.21
(b) To represent and sell as a new marine product any marine product,22
the legal title of which has been transferred by a manufacturer, distributor, or23
dealer to an ultimate purchaser.24
(c) To resort to or use any false or misleading advertisement in25
connection with his business as such marine dealer or marine product salesman.26
(d) To sell or offer to sell makes, models, or classifications of new marine27
products for which no selling agreement and license to sell is held.28
(e) Except as otherwise approved by the commission, to sell or offer to29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 25 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
sell a marine product from an unlicensed location.1
(3) For a marine product lessor or marine product lessor agent:2
(a) To represent and sell as a new marine product any marine product3
which has been used or intended to be used and operated for leasing and rental4
purposes.5
(b) To resort to or use any false or misleading advertising in connection6
with the business of leasing or renting marine products.7
(c) To lease, rent, sell, or offer to sell a marine product from a location8
not licensed for such activity.9
(d) To rent or lease any marine product which has been located within10
this state for a period of thirty days or more, unless such marine product has11
been issued a Louisiana license plate by, and all license fees and taxes have been12
paid to, this state.13
(e) To pay a fee to any person in return for the solicitation, procurement,14
or production by that person of prospective lessees of marine products, unless15
the person receiving the fee is a lease facilitator who holds a valid license as16
provided by this Chapter and a valid appointment from the marine product17
lessor as provided by R.S. 32:1270.4(B)(1). The fees prohibited by this18
Subparagraph shall not include amounts paid to a marine dealer as part of the19
consideration for the sale or assignment of a lease or leased marine product or20
other amounts paid to the dealer who transfers the title on the marine product21
or assigns the lease contract to the marine product lessor.22
(f) To fail to fully and completely explain each charge listed on a retail23
buyer's or lessee's order or marine product invoice or leasing agreement prior24
to the lease of a marine product.25
(g) When leasing a marine product to a consumer, to assess any26
consumer services fees, which shall include fees for treating the interior27
upholstery of the vehicle, oil changes, roadside assistance, dealer inspections, or28
any other service offered by the marine product lessor, without allowing the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 26 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
consumer to refuse such services and be exempt from payment for such services.1
The provisions of this Subparagraph shall not apply to marine product lessor-2
added options or accessories which are permanently affixed to the marine3
product.4
(4) For any person or other licensee:5
(a) To modify a selling agreement during the term of the agreement or6
upon its renewal if the modification substantially and adversely affects the7
dealer's rights, obligations, investment, or return on investment without giving8
sixty-day written notice of the proposed modification to the licensee and the9
commission unless the modifications are required by law, court order, or the10
commission. Within the sixty-day notice period the licensee may file with the11
commission a complaint for a determination whether there is good cause for12
permitting the proposed modification. The party seeking to modify or replace13
an agreement shall demonstrate by a preponderance of the evidence that there14
is good cause for the modification or replacement. The commission shall15
schedule a hearing within sixty days to decide the matter. Multiple complaints16
pertaining to the same proposed modifications shall be consolidated for hearing.17
The proposed modification may not take effect pending the determination of the18
matter.19
(b) In making a determination of whether there is good cause for20
permitting a proposed modification, the commission may consider any relevant21
factor including:22
(i) The reasons for the proposed modification.23
(ii) Whether the proposed modification is applied to or affects all24
licensees in a nondiscriminating manner.25
(iii) The degree to which the proposed modification will have a26
substantial and adverse effect upon the licensee's investment or return on27
investment.28
(iv) Whether the proposed modification is in the public interest.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 27 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(v) The degree to which the proposed modification is necessary to the1
orderly and profitable distribution of marine products and other services by the2
licensee.3
(vi) Whether the proposed modification is offset by other modifications4
beneficial to the licensee.5
(c) The decision of the commission shall be in writing and shall contain6
findings of fact and a determination of whether there is good cause for7
permitting the proposed modification. The commission shall deliver copies of8
the decision to the parties personally or by registered mail.9
(5) For any employee of a licensee while acting in the scope of his10
employment, to accept any payment, commission, fee, or compensation of any11
kind from any person other than the employing licensee, unless such payment12
is fully disclosed to and approved by the employing licensee.13
§1270.2. Warranty; compensation; audits of marine dealer records14
A.(1) It shall be a violation of this Chapter for a manufacturer,15
distributor, wholesaler, distributor branch, or factory branch of marine16
products or any officer, agent or other representative thereof to fail to17
adequately and fairly compensate its marine dealers for labor, parts, and other18
expenses incurred by such dealer to perform under and comply with a19
manufacturer's or a distributor's warranty agreement.20
(2) In no event shall any manufacturer or distributor pay its marine21
dealers at a price or rate for warranty work that is less than that charged by the22
marine dealer to the retail customers of the marine dealer for nonwarranty23
work of like kind.24
(3) Warranty work includes parts and labor performed.25
(4) All claims made by the marine dealer for compensation under this26
Subsection shall be paid within thirty days after approval and shall be approved27
or disapproved within thirty days after receipt. When any claim is disapproved,28
the marine dealer shall be notified in writing of the grounds for disapproval.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 28 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(5) The obligations set forth in this Subsection may be modified by1
contract.2
B.(1) Notwithstanding the terms of any selling agreement, warranty and3
sales, incentive, audits of marine dealer records may be conducted by the4
manufacturer, distributor, distributor branch, or factory branch. Any audit for5
warranty parts or service compensation shall be for the twelve-month period6
immediately following the date of the payment of the claim by the manufacturer7
or distributor. However, a marine dealer shall not be held liable by virtue of an8
audit for failure to retain parts for a period in excess of six months. Any audit9
for sales incentives, service incentives, rebates, or other forms of incentive10
compensation shall only be for the twelve-month period immediately following11
the date of the final payment to the marine dealer under a promotion, event,12
program, or activity. In no event shall the manufacturer, distributor,13
distributor branch, or factory branch fail to allow the marine dealer to make14
corrections to the sales data in less than one hundred twenty days from the15
program period. Additionally, no penalty other than amounts advanced on a16
marine product reported incorrectly shall be due in connection with the audit.17
With respect to marine products sold during the time period subject to the18
audit, but submitted incorrectly to the manufacturer, distributor, or wholesale19
distributor branch or factory branch, the marine dealer shall be charged back20
for the amount reported incorrectly and credited with the amount due, if21
anything, on the actual sale date.22
(2) No claim which has been approved and paid may be charged back to23
the marine dealer unless it can be shown that one or all of the following applies:24
(a) The claim was false or fraudulent.25
(b) The repairs were not properly made.26
(c) The repairs were unnecessary to correct the defective condition under27
generally accepted standards of workmanship.28
(d) The marine dealer failed to reasonably substantiate the repair in29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 29 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
accordance with reasonable written requirements of the manufacturer or1
distributor, if the marine dealer was notified of the requirements prior to the2
time the claim arose and if the requirements were in effect at the time the claim3
arose.4
(3) A manufacturer or distributor shall not deny a claim solely based on5
a marine dealer's incidental failure to comply with a specific claim processing6
requirement, or a clerical error, or other administrative technicality.7
(4) Limitations on warranty parts or service compensation, sales8
incentive audits, rebates, or other forms of incentive compensation, chargebacks9
for warranty parts or service compensation, and service incentives and10
chargebacks for sales compensation only shall not be effective in the case of11
intentionally false or fraudulent claims.12
(5) It shall be deemed an unfair act pursuant to this Chapter to audit a13
marine dealer more frequently than two sales-related and two service-related14
audits in a twelve-month period. Nothing in this Subsection shall limit a15
manufacturer's or distributor's ability to perform routine claim reviews in the16
normal course of business.17
(6) No claim may be rejected as late if it has been submitted within sixty18
days of the date the repair order was written.19
§1270.3. Sale of water-damaged marine products20
A. No person shall sell, transfer, or convey any new or used marine21
product to any person without notifying the buyer or receiver of the marine22
product in writing of the extent of any water damage from flooding which23
occurred to the marine product prior to the transaction.24
B. If a sale, transfer, or conveyance of a new or used marine product25
occurs in violation of Subsection A of this Section, the person receiving26
ownership and title to the marine product who is not otherwise aware of the27
damage at the time of the transaction may bring an action to set aside the28
transaction within one year from the date of the transaction and receive all29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 30 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
monies or other property given as consideration for the marine product less a1
reasonable assessment for wear and tear.2
C. For the purposes of this Section, a "water-damaged marine product"3
means any marine product whose power train, computer, or electrical system4
has been damaged by flooding.5
§1270.4. Marine product lessors; appointment of marine product lease6
facilitators7
A.(1) Except as otherwise provided by this Chapter, a marine product8
lessor manufacturer or distributor may not terminate a selling agreement prior9
to the expiration of its term, except for good cause. Good cause shall include but10
not be limited to the failure of the lessee to comply with any lawful requirement11
of the selling agreement, after being given notice thereof, and a reasonable12
opportunity, which in no event need be more than thirty days, to cure the13
failure. Nothing herein shall permit the cancellation of a selling agreement14
solely for failure to meet performance standards based on a survey of sales15
penetration in a regional, national, territorial, or other geographic area.16
(2) If during the period in which the selling agreement granted by a17
marine product lessor manufacturer or distributor is in effect, there occurs any18
of the following events, which is relevant to the selling agreement, immediate19
notice of termination without opportunity to cure shall be reasonable:20
(a) The dealer abandons the selling agreement by failing to operate the21
business for five consecutive days during which the dealer is required to operate22
the business under the terms of the selling agreement, unless such failure to23
operate is due to fire, flood, or storms beyond the dealer's control.24
(b) The marine product lessor manufacturer or distributor and the25
dealer agree in writing to terminate the selling agreement.26
(c) The dealer fails, for a period of ten days following notification of27
noncompliance, to comply with any federal, state, or local law or regulation28
applicable to the operation of the dealership.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 31 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(d) The dealership's premises of the selling agreement is seized, taken1
over, or foreclosed on by a creditor, lienholder, or lessor, provided that a final2
judgment against the dealer remains unsatisfied for thirty days, unless an3
appeal bond has been filed.4
(e) The dealer fails to pay any selling agreement fees or other amounts5
due to the manufacturer or distributor within ten days of receiving written6
notice that such fees are overdue.7
(3)(a) No marine product lessor manufacturer or distributor shall fail8
to renew a selling agreement unless the manufacturer or distributor provides9
the following:10
(i) Written notice to the dealer at least one hundred eighty days prior to11
his intention not to renew.12
(ii) The dealer with an opportunity to sell his business, during the one13
hundred eighty days prior to the expiration of the franchise, to a purchaser14
meeting the manufacturer's or distributor's then current requirements for15
granting new selling agreements, or if not granting a significant number of new16
selling agreements, then the current requirements for granting renewal selling17
agreements.18
(iii) That the refusal not to renew is not for the purpose of converting the19
dealer's business premises to operation by employees or agents of the20
manufacturer or distributor for such manufacturer's or distributor's own21
account, provided that nothing in this Section shall prohibit a manufacturer or22
distributor from exercising a right of first refusal to purchase a dealer's23
business.24
(iv) That upon expiration of the selling agreement, the manufacturer or25
distributor agrees not to seek to enforce any covenant of the unrenewed dealer26
not to compete with the manufacturer or distributor or dealer of the27
manufacturer or distributor.28
(b) Termination of a selling agreement shall be permitted pursuant to29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 32 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Paragraphs (1) and (2) of this Subsection, or if the dealer and the manufacturer1
or distributor agree not to renew the selling agreement.2
B.(1) A marine product lessor may appoint one or more lease facilitators3
licensed pursuant to the terms of this Part to represent the marine product4
lessor in obtaining prospective lease customers. An appointment complies with5
the requirements of this Subsection if it is in writing, discloses its terms, and6
otherwise complies with the rules of the commission.7
(2) In a lease contract or agreement between a marine product lessor8
and a lessee solicited, procured, or produced by a lease facilitator, the marine9
product lessor shall disclose to the lessee that a fee was paid, or will be paid to10
the lease facilitator for the solicitation, procurement, or production of the lessee11
or the lease. The marine product lessor shall include the disclosure required by12
this Paragraph in a prominent position in one or both of the following manners:13
(a) On the face of the written memorandum of the lease, contract, or14
agreement.15
(b) On a separate instrument signed by the lessee at the same time as the16
signing of the lease contract or agreement.17
C.(1) Except as otherwise provided by this Section, a lease facilitator18
may accept a fee for procuring a marine product lessee or prospective marine19
product lessee for or on behalf of a lessor.20
(2) Nothing in this Section shall limit the ability of a lease facilitator to21
accept an appointment from more than one lessor.22
(3) Nothing in this Section shall prohibit a lease facilitator from23
representing a lessor or lessee in the acquisition of a marine product for the24
purpose of leasing the marine product to another person.25
§1270.5. Succession; right of first refusal; marine dealers26
A. The terms of the selling agreement notwithstanding, any marine27
dealer may appoint by will, or other written instrument, a designated successor28
to succeed in the ownership interest of the marine dealer in the marine29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 33 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
dealership upon the death or incapacity of the marine dealer.1
B. Unless good cause exists for refusal to honor the succession on the2
part of the manufacturer or distributor, any designated successor of a deceased3
or incapacitated marine dealer of a marine dealership may succeed to the4
ownership of the marine dealership under the existing selling agreement if:5
(1) The designated successor gives the manufacturer or distributor6
written notice of his or her intention to succeed to the ownership of the marine7
dealer within sixty days of the marine dealer's death or incapacity.8
(2) The designated successor agrees to be bound by all the terms and9
conditions of the selling agreement.10
C. The manufacturer or distributor may request, and the designated11
successor shall provide, promptly upon such request, personal and financial12
data reasonably necessary to determine whether the succession should be13
honored.14
D. If a manufacturer or distributor believes that good cause exists for15
refusing to honor the succession of a deceased or incapacitated marine dealer,16
the manufacturer or distributor may, not more than sixty days following receipt17
of notice of the designated successor's intent to succeed and receipt of such18
personal or financial data, serve upon the designated successor notice of its19
refusal to honor the succession and of its intent to discontinue the existing20
selling agreement with the marine dealer not earlier than six months from the21
date such notice is served.22
E. The notice must state the specific grounds for the refusal to honor the23
succession.24
F. If notice of refusal and discontinuance is not timely served upon the25
designated successor, the selling agreement shall continue in effect subject to26
termination only as otherwise permitted by this Part.27
G. In determining whether good cause for the refusal to honor the28
succession exists, the manufacturer or distributor has the burden of proving29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 34 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
that the designated successor is not of good moral character or does not1
otherwise meet the manufacturer's or distributor's reasonable standards as a2
marine dealer.3
H. If a manufacturer or distributor refuses to honor the succession to4
the ownership interest of a deceased or incapacitated owner for good cause, then5
and in such event:6
(1) The manufacturer or distributor shall allow the designated successor7
a reasonable period of time which shall not be less than six months in which to8
consummate a sale of the marine dealership. Any such sale shall be subject to9
R.S. 32:1270.1(2)(d).10
(2) Upon termination of the selling agreement pursuant to such refusal,11
the provisions of R.S. 32:1270.6 shall apply.12
§1270.6. Requirements upon termination of marine dealership; penalty;13
indemnity14
A.(1) In the event the licensee ceases to engage in the business of being15
a marine dealer, or ceases to sell a particular make of marine product and after16
notice to the manufacturer, distributor, or representative by certified mail or17
commercial delivery service with verification of receipt, within thirty days of the18
receipt of the notice by the manufacturer, distributor, or representative, the19
manufacturer, distributor, or representative shall repurchase:20
(a) All new marine products of the current and last prior model year21
delivered to the licensee and parts on hand that have not been damaged or22
substantially altered to the prejudice of the manufacturer while in the23
possession of the licensee. The repurchase of parts shall be limited to those24
listed in the manufacturer's price book. The marine products and parts shall25
be repurchased at the cost to the licensee which shall include without limitation26
freight and advertising costs, less the allowances paid to the dealer.27
(b) At fair market value, each undamaged sign owned by the marine28
dealer which bears a trademark or trade name used or claimed by the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 35 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
manufacturer, distributor, or representative if the sign was purchased from or1
purchased at the request of the manufacturer, distributor, or representative.2
Fair market value shall be no less than cost of acquisition of the sign by the3
dealer.4
(c) At fair market value, all special tools and automotive service5
equipment owned by the marine dealer which were recommended in writing6
and designated as special tools and equipment and purchased from or7
purchased at the request of the manufacturer, distributor, or representative, if8
the tools and equipment are in usable and good condition except for reasonable9
wear and tear. Fair market value shall be no less than cost of acquisition of10
special tools and automotive service equipment by the marine dealer.11
(d) The manufacturer, distributor, or representative shall pay to the12
marine dealer the costs of transporting, handling, packing, and loading of13
marine product, or parts, signs, tools, and equipment subject to repurchase.14
(2) The manufacturer shall make the required repurchase after the15
marine dealer terminates his selling agreement within sixty days of the16
submission to the manufacturer, by certified mail, return receipt requested, or17
commercial delivery service with verification of receipt, a final inventory of18
marine products and parts on hand.19
B. Failure to make such repurchase without just cause shall subject the20
manufacturer to a penalty of one and one-half percent per month, or fraction21
thereof, of the inventory value or returnable marine products, and parts, signs,22
special tools, and automotive service equipment, payable to the dealer, as long23
as the repurchase is not made.24
§1270.7. Manufacturer, distributor, or wholesaler repurchase; marine dealer;25
products26
A. If any marine dealer enters into a selling agreement with a27
manufacturer, distributor, or wholesaler wherein the marine dealer agrees to28
maintain an inventory of marine products or repair parts, the manufacturer,29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 36 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
distributor, or wholesaler shall not terminate or fail to renew such selling1
agreement unless there is a breach of the selling agreement by the marine dealer2
and until ninety days after notice of such intention to terminate, including the3
breach of the selling agreement, has been sent by certified mail, return receipt4
requested, or commercial delivery service with verification of receipt, to the5
marine dealer and the marine dealer has failed to correct the breach within6
such period.7
B. If the selling agreement is terminated as a result of any action by the8
marine dealer and the manufacturer, distributor, or wholesaler has not given9
due cause, as provided in this Section, for termination of such selling agreement,10
the manufacturer, distributor, or wholesaler shall not be required to repurchase11
the inventory as provided in this Section; however, if the selling agreement is12
terminated as a result of any action by the marine dealer and the manufacturer,13
distributor, or wholesaler has given the marine dealer due cause, as provided14
in this Section, to terminate the selling agreement, the manufacturer,15
distributor, or wholesaler shall be required to repurchase that inventory16
previously purchased from them, including any new and unused marine17
products of the current and immediate prior model or program year and new18
and unused parts inventory as provided in this Section.19
C. It shall be unlawful for the manufacturer, wholesaler, or distributor,20
without due cause and pursuant to its own initiating action, to terminate or fail21
to renew a selling agreement, unless the manufacturer, wholesaler, or22
distributor repurchases the new and unused inventory as provided for in this23
Section.24
D. It shall not be unlawful for the marine dealer with due cause and25
pursuant to the marine dealer's own initiating action to terminate or fail to26
renew a selling agreement with a manufacturer, wholesaler, or distributor, and27
the manufacturer, wholesaler, or distributor shall repurchase inventory as28
provided by this Section. To determine what constitutes due cause for a marine29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 37 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
dealer to terminate or fail to renew a selling agreement, the following factors1
regarding the manufacturer, wholesaler, distributor or representative of one of2
the so named shall include whether the manufacturer, wholesaler, distributor,3
or one of the so named:4
(1) Has made a material misrepresentation in accepting or acting under5
the selling agreement.6
(2) Has engaged in an unfair business practice.7
(3) Has engaged in conduct which is injurious or detrimental to public8
welfare.9
(4) Has failed to comply with any applicable Section of this Chapter.10
(5) Has been convicted of a crime, the effect of which would be11
detrimental to the marine dealership or dealer.12
(6) Has violated the Louisiana marine dealers area of responsibility.13
(7) Has failed to operate in the normal course of business for thirty14
consecutive days.15
(8) Has failed to comply with the terms of the selling agreement with the16
marine dealer.17
(9) Has materially misrepresented the performance or fitness for sale or18
use of a product line or products covered by the selling agreement.19
E. If a manufacturer, distributor, or wholesaler does not intend to renew20
a selling agreement, the manufacturer, distributor, or wholesaler shall give the21
marine dealer ninety days written notice prior to the effective date by certified22
mail, return receipt requested, or commercial delivery service with verification23
of receipt.24
F. As required by this Section, the manufacturer, distributor, or25
wholesaler shall repurchase that inventory which can be verified as previously26
purchased from them, including all new and unused marine products of the27
current and immediate prior model or program year and new and unused parts28
on hand and held by the marine dealer on the date of termination of the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 38 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
contract. The manufacturer, distributor, or wholesaler shall pay an amount1
equivalent to the cost actually paid by the marine dealer, including discounts2
given and rebates paid per unit for any new, unused, undamaged, and unaltered3
from original invoice and delivery, and complete marine product. The4
manufacturer, distributor, or wholesaler shall also pay an amount equal to the5
price paid by the marine dealer for any new, unused, and undamaged repair6
parts and accessories which are listed in the manufacturer's, distributor's, or7
wholesaler's prevailing parts list or were delivered in the past forty-eight8
months and are in their original packaging.9
G. The provisions of this Section shall not require the repurchase from10
a marine dealer of:11
(1) Any repair part which has a limited storage life or is otherwise12
subject to deterioration.13
(2) Any single repair part which is priced and packaged as a set of two14
or more items.15
(3) Any repair part which, because of its condition, is not resalable as a16
new part without repackaging or reconditioning.17
(4) Any inventory for which the marine dealer cannot provide good title,18
free and clear of all claims, liens, and encumbrances.19
(5) Any inventory which the marine dealer desires to keep, provided that20
the marine dealer has a contractual right to do so.21
(6) Any marine product which is not in new, unused, undamaged, and22
complete condition.23
(7) Any repair parts which are not in new, unused, and undamaged24
condition.25
(8) Any inventory which was ordered by the marine dealer on or after26
the date of receipt of the notification of termination of the selling agreement.27
(9) Any inventory which was acquired by the marine dealer from any28
source other than the manufacturer, distributor, or wholesaler, or its immediate29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 39 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
predecessor.1
(10) Any marine product that has been altered substantially from2
original delivery.3
H. Upon termination of the selling agreement, the marine dealer shall4
submit a final inventory of marine products and parts on hand to the5
manufacturer, distributor, or wholesaler by certified mail, return receipt6
requested, or commercial delivery service with verification of receipt. If a7
manufacturer, distributor, or wholesaler fails or refuses to repurchase as8
required by this Section within thirty days of the receipt of the inventory,9
without just cause, the manufacturer, distributor, or wholesaler shall be10
subjected to a penalty of the marine dealer's reasonable attorney fees, court11
costs, and interest on the inventory value of returnable marine products and12
parts required to be purchased computed at the rate of one and one-half percent13
per month from the thirty-first day, as long as such repurchase is not made.14
I. Notwithstanding any other provision of law to the contrary, it shall be15
unlawful for a manufacturer, distributor, or wholesaler, either by contract or16
practice, to assess repurchase or restocking charges, freight charges except for17
return charges, reimbursement of interest charges paid, and any similar18
charges to the marine dealer.19
J. If a marine dealer completes a bona fide, orderly, and permanent20
closure of the marine dealership, which does not involve a sale of the dealership,21
and provides at least ninety days notice to the manufacturer, wholesaler, or22
distributor, the marine products and parts inventory shall be repurchased by23
the manufacturer, wholesaler, or distributor in the manner provided for in this24
Section, when a selling agreement is terminated as result of action by the25
manufacturer, wholesaler, or distributor.26
K. In the event of the death or incapacity of the marine dealer or the27
majority owner of a person operating as a marine dealer, the manufacturer,28
distributor, or wholesaler shall, at the option of the heirs if the marine dealer29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 40 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
died intestate or the legatees or transferees under the terms of the deceased1
marine dealer's last will and testament if the marine dealer died testate,2
repurchase the inventory from the heirs, legatees, or transferees as if the3
manufacturer, distributor, or wholesaler had terminated the contract, and the4
inventory repurchase provisions of this Section shall apply. The heirs or legatees5
shall have until the end of the contract term or one year from the date of the6
death of the marine dealer or majority owner of a person, whichever comes7
first, to exercise their option pursuant to this Section; provided, however, that8
nothing in this Section shall require the repurchase of inventory if the heirs,9
legatees, or transferees and the manufacturer, distributor, or wholesaler enter10
into a new selling agreement to operate the marine dealership.11
§1270.8. Manufacturer termination of line-make; manufacturer bankruptcy;12
license13
Notwithstanding the terms of any selling agreement or other provision14
of law, if the termination, cancellation, or nonrenewal of a licensee's selling15
agreement is the result of the termination, elimination, or cessation of a line-16
make by the manufacturer, distributor, or factory branch, whether by17
bankruptcy or otherwise, the license issued by the commission may remain in18
effect at the discretion of the commission pursuant to its rules.19
§1270.9. Venue and choice of law for litigation or arbitration20
A provision contained in a selling agreement requiring that arbitration21
or litigation be conducted outside this state or a provision that seeks to apply22
any law other than Louisiana law to disputes between the parties to a selling23
agreement, is void and unenforceable.24
PART III. PROVISIONS SPECIFIC TO MOTORCYCLES AND25
ALL-TERRAIN VEHICLES26
§1270.10. Establishment of new motorcycle or all-terrain vehicle dealerships or27
relocations; protests; procedure28
A. Whenever the commission receives an application for a recreational29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 41 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
products dealer's license which would add a new motorcycle or all-terrain1
vehicle dealership, it shall first notify the existing licensed motorcycle or all-2
terrain vehicle dealership or dealerships selling the same-line makes, models,3
or classifications if the new dealership's proposed location is within the existing4
dealer's area of responsibility. Any same-line makes, models, or classifications5
dealership whose area of responsibility includes the location of the proposed6
new motorcycle or all-terrain vehicle dealership may object to the granting of7
the license.8
B. Whenever the commission receives an application for a recreation9
products dealer's license which would relocate an existing motorcycle or all-10
terrain vehicle dealership, it shall first notify the existing licensed motorcycle11
or all-terrain vehicle dealership or dealerships selling the same-line makes,12
models, or classifications if the dealership's proposed new location is within the13
existing dealer's area of responsibility. The existing same-line makes, models,14
or classifications dealership or dealerships shall have the right to object to the15
granting of the license only if the proposed relocation is within a radius of seven16
miles of its facility. However, without regard to distance, whenever the17
commission receives an application for the relocation of a motorcycle or all-18
terrain vehicle dealership which would add an additional franchise to an19
existing same-line makes, models, or classifications dealership's area of20
responsibility, the affected motorcycle or all-terrain vehicle dealership shall21
have the right to object.22
C. The objection shall be in writing and shall be received by the23
commission within a fifteen-day period after receipt of the notice. The fifteen-24
day objection period shall be waived upon written notification to the25
commission from all licensees entitled to object that the licensees have no26
objections to the proposed change or addition for which the notice of intent was27
issued. If timely objection is lodged, and prior to the issuance of the license, the28
commission shall hold a hearing within thirty days after receipt of the objection29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 42 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
and issue its decision within ninety days after date of the hearing. Notice of1
hearing and an opportunity to participate therein shall be given to the2
manufacturer or distributor, the applicant for the license as a motorcycle or all-3
terrain vehicle dealer, and to the protesting motorcycle or all-terrain vehicle4
dealership or dealerships.5
D. Whenever the commission receives an objection pursuant to the6
provisions of Subsection A of this Section, the commission shall consider the7
following and may consider any other relevant factors in determining whether8
there is good cause to issue a license:9
(1) Whether the community or territory can support an additional10
motorcycle or all-terrain vehicle dealership.11
(2) The financial impact on both the applicant and the existing12
motorcycle or all-terrain vehicle dealership or dealerships.13
(3) Whether the existing motorcycle or all-terrain vehicle dealerships of14
the same-line makes, models, or classifications in the dealership's area of15
responsibility are providing adequate representation, competition, and16
convenient consumer care for the motorcycle or all-terrain vehicles of the same-17
line makes, models, or classifications located within that area.18
(4) Whether the issuance of the license would increase competition, or be19
in the public interest, or both.20
§1270.11. Unauthorized acts21
It shall be a violation of this Part:22
(1) For a manufacturer, distributor, wholesaler, distributor branch,23
factory branch, converter or officer, agent, or other representative thereof:24
(a) To induce or coerce, or attempt to induce or coerce, any licensee:25
(i) To order or accept delivery of any motorcycle or all-terrain vehicle,26
appliances, equipment, parts or accessories therefor, or any other commodity27
or commodities which shall not have been voluntarily ordered.28
(ii) To order or accept delivery of any motorcycle or all-terrain vehicle29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 43 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
with special features, appliances, accessories, or equipment not included in the1
list price of said vehicles as publicly advertised.2
(iii) To order for any person any parts, accessories, equipment,3
machinery, tools, appliances, or any commodity whatsoever.4
(iv) To assent to a release, assignment, novation, waiver, or estoppel5
which would relieve any person from liability to be imposed by law, unless done6
in connection with a settlement agreement to resolve a matter pending a7
commission hearing or pending litigation between a manufacturer, distributor,8
wholesaler, distributor branch or factory branch, or officer, agent, or other9
representative thereof.10
(v) To enter into a franchise with a licensee or during the franchise term,11
use any written instrument, agreement, release, assignment, novation, estoppel,12
or waiver, to attempt to nullify or modify any provision of this Chapter, or to13
require any controversy between a dealer and a manufacturer to be referred to14
any person or entity other than the commission, or duly constituted courts of15
this state or the United States, if such referral would be binding upon the16
motorcycle or all-terrain vehicle dealer. Such instruments are null and void,17
unless done in connection with a settlement agreement to resolve a matter18
pending a commission hearing or pending litigation.19
(vi) To waive the right to a jury trial.20
(vii) To release, convey, or otherwise provide customer information, if21
to do so is unlawful or if the customer objects in writing. This does not include22
information that is necessary for the manufacturer to meet its obligations to the23
motorcycle or all-terrain vehicle dealer or consumers in regard to contractual24
responsibilities, motorcycle or all-terrain vehicle recalls, or other requirements25
imposed by state or federal law. The manufacturer is further prohibited from26
providing any consumer information received from the motorcycle or all-27
terrain vehicle dealer to any unaffiliated third party.28
(viii) To pay the attorney fees of the manufacturer or distributor related29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 44 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to hearings and appeals brought under this Chapter.1
(b) To threaten to cancel any franchise or any contractual agreement2
existing between such manufacturer, distributor, wholesaler, distributor branch3
or factory branch and motorcycle or all-terrain vehicle dealer for any reason.4
(c) To unfairly, without just cause and due regard to the equities of5
motorcycle or all-terrain vehicle dealer, cancel the franchise of the licensee. The6
nonrenewal of a franchise with such dealer or his successor without just7
provocation or cause, or the refusal to approve a qualified transferee or8
qualified successor to the dealer-operator as provided for in the franchise shall9
be deemed an evasion of this Subparagraph and shall constitute an unfair10
cancellation, regardless of the terms or provisions of such franchise. However,11
at least ninety days notice shall be given to the dealer of a cancellation or12
nonrenewal of franchise except for a cancellation arising out of fraudulent13
activity of the dealer principal which results in the conviction of a crime14
punishable by imprisonment.15
(d) To refuse to extend to a licensee the privilege of determining the16
mode or manner of available transportation facility that the motorcycle or all-17
terrain vehicle dealer desires to be used or employed in making deliveries of18
motorcycles or all-terrain vehicles to him or it.19
(e) To ship or sell motorcycles or all-terrain vehicles to a licensee prior20
to the licensee having been granted a license by the commission to sell21
motorcycles or all-terrain vehicles.22
(f) To unreasonably withhold consent to the sale, transfer, or exchange23
of the franchise to a qualified transferee capable of being licensed as a24
motorcycle or all-terrain vehicle dealer in this state, provided the transferee25
meets the criteria generally applied by the manufacturer in approving new26
motorcycle or all-terrain vehicle dealers and agrees to be bound by all the terms27
and conditions of the standard franchises.28
(g) To fail to respond in writing to a written request for consent as29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 45 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
specified in Subparagraph (f) of this Paragraph above within sixty days of1
receipt of a written request on the forms, if any, generally utilized by the2
manufacturer or distributor for such purposes and containing the information3
required therein. Failure to respond shall be deemed to be consent to the4
request.5
(h)(i) To sell or offer to sell a new or unused motorcycle or all-terrain6
vehicle directly to a consumer except as provided in this Chapter, or to compete7
with a licensee in the same-line makes, models, or classifications operating8
under an agreement or franchise from the aforementioned manufacturer. A9
manufacturer shall not, however, be deemed to be competing when any one of10
the following conditions are met:11
(aa) Operating a motorcycle or all-terrain vehicle dealership temporarily12
for a reasonable period, not to exceed two years.13
(bb) Operating a bona fide retail dealership which is for sale to any14
qualified independent person at a fair and reasonable price, not to exceed two15
years.16
(cc) Operating in a bona fide relationship in which a person independent17
of a manufacturer has made a significant investment subject to loss in the18
dealership, and can reasonably expect to acquire full ownership of such19
dealership on reasonable terms and conditions.20
(ii) After any of the conditions have been met under Subitems (aa) and21
(bb) of Item (i) of this Subparagraph, the commission shall allow the22
manufacturer to compete with licensees of the same-line makes, models, or23
classifications under an agreement or franchise from said manufacturer for24
longer than two years when, in the discretion of the commission, the best25
interest of the manufacturer, consuming public, and licensees are best served.26
(i) To fail to compensate its motorcycle or all-terrain vehicle dealers for27
the work and services they are required to perform in connection with the28
motorcycle or all-terrain vehicle dealer's delivery and preparation obligations29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 46 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
according to the terms of compensation that shall be filed with the commission1
on or before October first of each year. The commission shall find the2
compensation to be reasonable or the manufacturer shall remedy any3
deficiencies.4
(j) To fail to designate and provide to the commission in writing the5
community or territory assigned to a licensee.6
(k) To unreasonably discriminate among competing, similarly situated,7
same-line make dealers in the sales of motorcycles or all-terrain vehicles, in the8
availability of motorcycles or all-terrain vehicles, in the terms of incentive9
programs or sales promotion plans, or in other similar programs.10
(l) To use any subsidiary, affiliate, or any other controlled person or11
entity, or to employ the services of a third party, to accomplish what would12
otherwise be illegal conduct under this Chapter on the part of the manufacturer13
or distributor.14
(m) To make a change in the area of responsibility described in the15
franchise agreement or sales and service agreement of a motorcycle or all-16
terrain vehicle dealer, without the franchisor, converter, or manufacturer17
giving said motorcycle or all-terrain vehicle dealer and the commission no less18
than sixty days prior written notice by certified or registered mail.19
(2) For a motorcycle or all-terrain vehicle dealer, used motorcycle or all-20
terrain vehicle dealer, or a motorcycle or all-terrain vehicle salesman:21
(a) To require a purchaser of a motorcycle or all-terrain vehicle, as a22
condition of sale and delivery thereof, to also purchase special features,23
appliances, accessories, or equipment not desired or requested by the24
purchaser; however, this prohibition shall not apply as to special features,25
appliances, accessories, or equipment which are permanently affixed to the26
motorcycle or all-terrain vehicle.27
(b) To represent and sell as a new motorcycle or all-terrain vehicle any28
motorcycle or all-terrain vehicle, the legal title of which has been transferred29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 47 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
by a manufacturer, distributor, or dealer to an ultimate purchaser.1
(c) To resort to or use any false or misleading advertisement in2
connection with his business as such motorcycle or all-terrain vehicle dealer or3
motorcycle or all-terrain vehicle salesman.4
(d) To sell or offer to sell makes, models, or classifications of new5
motorcycles or all-terrain vehicles for which no franchise and license to sell is6
held.7
(e) Except as otherwise approved by the commission, to sell or offer to8
sell a motorcycle or all-terrain vehicle from an unlicensed location.9
(f) To deliver to a prospective purchaser a new or a used motorcycle or10
all-terrain vehicle on a sale conditioned on financing, i.e., a spot delivery, except11
on the following terms and conditions which shall be in writing and shall be a12
part of the conditional sales contract or other written notification signed by the13
purchaser:14
(i) That if the sale is not concluded by the financing of the sale to the15
purchaser within twenty-five days of the delivery, the sale contract shall be null16
and void.17
(ii) That the motorcycle or all-terrain vehicle being offered for trade-in18
by the purchaser shall not be sold by the motorcycle or all-terrain vehicle dealer19
until the conditional sale is complete.20
(iii) That there shall be no charge to the purchaser should the conditional21
sale not be completed, including but not limited to mileage charges or charges22
to refurbish the motorcycle or all-terrain vehicle offered for trade-in. However,23
the purchaser shall be responsible for any and all damages to the motorcycle or24
all-terrain vehicle or other motorcycles or all-terrain vehicles damaged by the25
fault of the purchaser and any and all liability incurred by the purchaser during26
the purchaser's custody of the vehicle to the extent provided for in R.S. 22:1296.27
(iv) That if the conditional sale is not completed, the motorcycle or all-28
terrain vehicle dealer shall immediately refund to the purchaser upon return29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 48 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
of the motorcycle or all-terrain vehicle all sums placed with the dealership as1
a deposit or any other purpose associated with the attempted sale of the2
motorcycle or all-terrain vehicle.3
(v) That the prospective purchaser shall return the motorcycle or all-4
terrain vehicle to the dealership within forty-eight hours of notification by the5
dealer that the conditional sale will not be completed. If the prospective6
purchaser does not return the motorcycle or all-terrain vehicle to the dealership7
within forty-eight hours of notification by the motorcycle or all-terrain vehicle8
dealer, an authorized agent of the motorcycle or all-terrain vehicle dealer shall9
have the right to recover the motorcycle or all-terrain vehicle without the10
necessity of judicial process, provided that such recovery can be accomplished11
without unauthorized entry into a closed dwelling, whether locked or unlocked12
and without a breach of peace.13
(g) To pay a fee to any person in return for the solicitation, procurement,14
or production by that person of prospective purchasers for new and used15
motorcycles or all-terrain vehicles, except to a motorcycle or all-terrain vehicle16
salesman licensed under the provisions of this Chapter.17
(h) To fail to fully and completely explain each charge listed on a retail18
buyer's order or motorcycle or all-terrain vehicle invoice prior to the purchase19
of a motorcycle or all-terrain vehicle.20
(i) When selling a motorcycle or all-terrain vehicle to a consumer, to21
assess any consumer services fees, which shall include fees for treating the22
interior upholstery of the vehicle, oil changes, roadside assistance, dealer23
inspections, or any other service offered by the dealer, without allowing the24
buyer to refuse such services and be exempt from payment for such services.25
The provisions of this Subparagraph shall not apply to dealer-added options or26
accessories which are permanently affixed to the motorcycle or all-terrain27
vehicle.28
(j)(i) To fail to disclose to a purchaser in writing on the sales contract,29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 49 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
buyer's order, or any other document that the motorcycle or all-terrain vehicle1
dealer may be participating in finance charges associated with the sale.2
(ii) To participate in a finance charge that would result in a difference3
between the buy rate and the contract rate of more than three percentage4
points.5
(iii) The provisions of this Subparagraph shall apply only to transactions6
subject to the Louisiana Motor Vehicle Sales Finance Act.7
(3) For a motorcycle or all-terrain vehicle lessor or motorcycle or all-8
terrain vehicle lessor agent:9
(a) To represent and sell as a new motorcycle or all-terrain vehicle any10
motorcycle or all-terrain vehicle which has been used or intended to be used and11
operated for leasing and rental purposes.12
(b) To resort to or use any false or misleading advertising in connection13
with the business of leasing or renting motorcycles or all-terrain vehicles.14
(c) To lease, rent, sell, or offer to sell a motorcycle or all-terrain vehicle15
from a location not licensed for such activity.16
(d) To rent or lease any motorcycle or all-terrain vehicle which has been17
located within this state for a period of thirty days or more, unless such18
motorcycle or all-terrain vehicle has been issued a Louisiana license plate by,19
and all license fees and taxes have been paid to, this state.20
(e) To pay a fee to any person in return for the solicitation, procurement,21
or production by that person of prospective lessees of motorcycles or all-terrain22
vehicles, unless the person receiving the fee is a lease facilitator who holds a23
valid license as provided by this Chapter and a valid appointment from the24
motorcycle or all-terrain vehicle lessor as provided by R.S. 32:1270.16(B)(1).25
The fees prohibited by this Subparagraph shall not include amounts paid to a26
motorcycle or all-terrain vehicle dealer as part of the consideration for the sale27
or assignment of a lease or leased vehicle or other amounts paid to the28
motorcycle or all-terrain vehicle dealer who transfers the title on the vehicle or29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 50 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
assigns the lease contract to the motorcycle or all-terrain vehicle lessor.1
(f) To fail to fully and completely explain each charge listed on a retail2
buyer's or lessee's order or motorcycle or all-terrain vehicle invoice or leasing3
agreement prior to the lease of a motorcycle or all-terrain vehicle.4
(g) When leasing a motorcycle or all-terrain vehicle to a consumer, to5
assess any consumer services fees, which shall include fees for treating the6
interior upholstery of the motorcycle or all-terrain vehicle, oil changes, roadside7
assistance, motorcycle or all-terrain vehicle dealer inspections, or any other8
service offered by the motorcycle or all-terrain vehicle lessor, without allowing9
the consumer to refuse such services and be exempt from payment for such10
services. The provisions of this Subparagraph shall not apply to motorcycle or11
all-terrain vehicle lessor-added options or accessories which are permanently12
affixed to the motorcycle or all-terrain vehicle.13
(4) For a lease facilitator:14
(a) To hold himself out to any person as a "leasing company", "leasing15
agent", "lease facilitator", or similar title, directly or indirectly engaged in the16
business of a lease facilitator, or otherwise engaged in the solicitation or17
procurement of prospective lessees for motorcycles or all-terrain vehicles not18
titled in the name of and registered to the lease facilitator, without holding a19
valid lease facilitator license and being in compliance with the terms of this20
Chapter.21
(b) To sell or offer to sell a new motorcycle or all-terrain vehicle.22
(c) To accept a fee from a motorcycle or all-terrain vehicle dealer or23
consumer.24
(d) To sign a manufacturer's statement of origin to a motorcycle or all-25
terrain vehicle, accept an assignment of a manufacturer's statement of origin26
to a motorcycle or all-terrain vehicle, or otherwise assume any element of title27
to a new motorcycle or all-terrain vehicle.28
(e) To procure or solicit prospective lessees for or on behalf of any person29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 51 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
other than a motorcycle or all-terrain vehicle lessor.1
(f) To act in the capacity of or engage in the business of a lease facilitator2
without a valid appointment from a motorcycle or all-terrain vehicle lessor to3
act on behalf of the motorcycle or all-terrain vehicle lessor in soliciting4
prospective lease clients or customers as provided by this Chapter.5
(5) For a broker:6
(a) To hold himself out to any person as a "broker", "purchasing7
company", "sales agent", or similar title, engaged in the business of broker, or8
otherwise engaged in the solicitation or procurement of prospective purchasers9
for motorcycles or all-terrain vehicles not titled in the name of and registered10
to the broker, unless the broker holds a valid broker license and is in11
compliance with the terms of this Chapter.12
(b) To sell, or offer to sell, or display a new motorcycle or all-terrain13
vehicle.14
(c) To be paid a fee by a motorcycle or all-terrain vehicle dealer.15
(d) To sign a manufacturer's statement of origin to a motorcycle or all-16
terrain vehicle, accept an assignment of a manufacturer's statement of origin17
to a motorcycle or all-terrain vehicle, or otherwise assume any element of title18
to a new motorcycle or all-terrain vehicle.19
(e) To act in the capacity of or engage in the business of a broker without20
a valid license issued as provided by this Chapter and a valid appointment from21
a motorcycle or all-terrain vehicle lessor to act on behalf of the motorcycle or22
all-terrain vehicle lessor in soliciting prospective lease clients or customers as23
provided by this Chapter.24
(f) To fail to execute a written brokering agreement and provide a25
completed copy to both of the following:26
(i) Any consumer entering into the brokering agreement. The completed27
copy shall be provided prior to the consumer's signing an agreement for the28
purchase of the motorcycle or all-terrain vehicle described in the brokering29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 52 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
agreement, or, prior to accepting one hundred dollars or more from that1
consumer, whichever comes first.2
(ii) The selling motorcycle or all-terrain vehicle dealer. The completed3
copy shall be provided prior to the selling motorcycle or all-terrain vehicle4
dealer's entering into a purchase agreement with the consumer at the time of5
delivery.6
(g) To accept a purchase deposit from any consumer that exceeds two7
point five percent of the selling price of the motorcycle or all-terrain vehicle8
described in the brokering agreement.9
(h) To fail to refund any purchase money, including purchase deposits,10
upon demand by a consumer at any time prior to the consumer's signing a11
motorcycle or all-terrain vehicle purchase agreement with a selling motorcycle12
or all-terrain vehicle dealer of the motorcycle or all-terrain vehicle described13
in the brokering agreement.14
(i) To fail to cancel a brokering agreement and refund, upon demand,15
any money paid by a consumer, including any brokerage fee, under any of the16
following circumstances:17
(i) When the final price of the brokered vehicle exceeds the purchase18
price listed in the brokering agreement.19
(ii) When the motorcycle or all-terrain vehicle delivered is not as20
described in the brokering agreement.21
(iii) When the brokering agreement expires prior to the customer's being22
presented with a purchase agreement from a selling motorcycle or all-terrain23
vehicle dealer arranged through the brokering dealer that contains a purchase24
price at or below the price listed in the brokering agreement.25
(j) To act as a seller and provide brokering services, both in the same26
transaction.27
(k) To fail to disclose to the consumer the dollar amount of any fee that28
the consumer is obligated to pay to the broker. This arrangement shall be29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 53 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
confirmed in a brokering agreement.1
(l) To fail to maintain, for a minimum of three years, a copy of the2
executed brokering agreement and other notices and documents related to each3
brokered transaction.4
(m) To fail to advise the consumer, prior to accepting any money, that5
a full refund will be given if the motorcycle or all-terrain vehicle ordered6
through the broker is not obtained for the consumer.7
(6) For any person or other licensee:8
(a) To modify a franchise during the term of the agreement or upon its9
renewal if the modification substantially and adversely affects the franchisee's10
rights, obligations, investment, or return on investment without giving sixty-day11
written notice of the proposed modification to the licensee and the commission12
unless the modifications are required by law, court order, or the commission.13
Within the sixty-day notice period the licensee may file with the commission a14
complaint for a determination whether there is good cause for permitting the15
proposed modification. The party seeking to modify or replace an agreement16
shall demonstrate by a preponderance of the evidence that there is good cause17
for the modification or replacement. The commission shall schedule a hearing18
within sixty days to decide the matter. Multiple complaints pertaining to the19
same proposed modifications shall be consolidated for hearing. The proposed20
modification may not take effect pending the determination of the matter.21
(b) In making a determination of whether there is good cause for22
permitting a proposed modification, the commission may consider any relevant23
factor including:24
(i) The reasons for the proposed modification.25
(ii) Whether the proposed modification is applied to or affects all26
licensees in a nondiscriminating manner.27
(iii) The degree to which the proposed modification will have a28
substantial and adverse effect upon the licensee's investment or return on29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 54 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
investment.1
(iv) Whether the proposed modification is in the public interest.2
(v) The degree to which the proposed modification is necessary to the3
orderly and profitable distribution of vehicles and other services by the licensee.4
(vi) Whether the proposed modification is offset by other modifications5
beneficial to the licensee.6
(c) The decision of the commission shall be in writing and shall contain7
findings of fact and a determination of whether there is good cause for8
permitting the proposed modification. The commission shall deliver copies of9
the decision to the parties personally or by registered mail.10
(7) For any employee of a licensee while acting in the scope of his11
employment, to accept any payment, commission, fee, or compensation of any12
kind from any person other than the employing licensee, unless such payment13
is fully disclosed to and approved by the employing licensee.14
§1270.12. Indemnification of motorcycle and all-terrain vehicle franchised15
dealers16
Notwithstanding the terms of any franchise agreement, each17
manufacturer or converter shall indemnify and hold harmless its franchised18
motorcycle or all-terrain vehicle dealers against any judgment for damages,19
including but not limited to court costs and reasonable attorney fees of the20
motorcycle or all-terrain vehicle dealer, arising out of complaints, claims, or21
lawsuits including but not limited to strict liability, negligence,22
misrepresentation, express or implied warranty, or rescission of sale to the23
extent that the judgment arises out of alleged defective or negligent24
manufacture, assembly, or design of motorcycles or all-terrain vehicles, parts,25
or accessories, or other functions by the manufacturer of converter, which are26
beyond the control of the motorcycle or all-terrain vehicle dealer.27
§1270.13. Warranty; compensation; audits of motorcycle or all-terrain vehicle28
dealer records29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 55 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
A.(1) It shall be a violation of this Chapter for a manufacturer, a1
distributor, a wholesaler, distributor branch or factory branch of motorcycles2
or all-terrain vehicles, or officer, agent, or other representative thereof to fail3
to adequately and fairly compensate its motorcycle or all-terrain vehicle dealers4
for labor, parts, and other expenses incurred by such motorcycle or all-terrain5
vehicle dealer to perform under and comply with a manufacturer's or a6
distributor's warranty agreement.7
(2) In no event shall any manufacturer or distributor pay its motorcycle8
or all-terrain vehicle dealers at a price or rate for warranty work that is less9
than that charged by the motorcycle or all-terrain vehicle dealer to the retail10
customers of the motorcycle or all-terrain vehicle dealer for nonwarranty work11
of like kind.12
(3) Warranty work includes parts and labor performed.13
(4) All claims made by the motorcycle or all-terrain vehicle dealer for14
compensation under this Subsection shall be paid within thirty days after15
approval and shall be approved or disapproved within thirty days after receipt.16
When any claim is disapproved, the motorcycle or all-terrain vehicle dealer17
shall be notified in writing of the grounds for disapproval.18
(5) The obligations in this Subsection as they relate to motorcycles or all-19
terrain vehicles may be modified by contract.20
B.(1) Notwithstanding the terms of any franchise agreement, warranty,21
and sales incentive, audits of motorcycle or all-terrain vehicle dealer records22
may be conducted by the manufacturer, distributor, distributor branch, or23
factory branch. Any audit for warranty parts or service compensation shall be24
for the twelve-month period immediately following the date of the payment of25
the claim by the manufacturer or distributor. However, a motorcycle or all-26
terrain vehicle dealer shall not be held liable by virtue of an audit for failure to27
retain parts for a period in excess of six months. Any audit for sales incentives,28
service incentives, rebates, or other forms of incentive compensation shall only29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 56 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
be for the twelve-month period immediately following the date of the final1
payment to the motorcycle or all-terrain vehicle dealer under a promotion,2
event, program, or activity. In no event shall the manufacturer, distributor,3
distributor branch, or factory branch fail to allow the motorcycle or all-terrain4
vehicle dealer to make corrections to the sales data in less than one hundred5
twenty days from the program period. Additionally, no penalty other than6
amounts advanced on a motorcycle or all-terrain vehicle reported incorrectly7
shall be due in connection with the audit. With respect to motorcycles or all-8
terrain vehicles sold during the time period subject to the audit, but submitted9
incorrectly to the manufacturer, distributor, or wholesale distributor branch10
or factory branch, the motorcycle or all-terrain vehicle dealer shall be charged11
back for the amount reported incorrectly and credited with the amount due, if12
anything, on the actual sale date.13
(2) No claim which has been approved and paid may be charged back to14
the motorcycle or all-terrain vehicle dealer unless it can be shown that one or15
all of the following applies:16
(a) The claim was false or fraudulent.17
(b) The repairs were not properly made.18
(c) The repairs were unnecessary to correct the defective condition under19
generally accepted standards of workmanship.20
(d) The motorcycle or all-terrain vehicle dealer failed to reasonably21
substantiate the repair in accordance with reasonable written requirements of22
the manufacturer or distributor, if the motorcycle or all-terrain vehicle dealer23
was notified of the requirements prior to the time the claim arose and if the24
requirements were in effect at the time the claim arose.25
(3) A manufacturer or distributor shall not deny a claim solely based on26
a motorcycle or all-terrain vehicle dealer's incidental failure to comply with a27
specific claim processing requirement, or a clerical error, or other28
administrative technicality.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 57 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(4) Limitations on warranty parts or service compensation, sales1
incentive audits, rebates, or other forms of incentive compensation, chargebacks2
for warranty parts or service compensation, and service incentives and3
chargebacks for sales compensation only shall not be effective in the case of4
intentionally false or fraudulent claims.5
(5) It shall be deemed an unfair act pursuant to this Chapter to audit a6
motorcycle or all-terrain vehicle dealer more frequently than two sales-related7
and two service-related audits in a twelve-month period. Nothing in this8
Subsection shall limit a manufacturer's or distributor's ability to perform9
routine claim reviews in the normal course of business.10
(6) No claim may be rejected as late if it has been submitted within sixty11
days of the date the repair order was written.12
§1270.14. Damage disclosure13
A. Whenever a new motorcycle or all-terrain vehicle subject to14
regulation pursuant to this Chapter is sold to any person, the seller shall notify15
the purchaser of any body damage or mechanical damage which the motorcycle16
or all-terrain vehicle has sustained that exceeds six percent of the17
manufacturer's suggested retail price or, in the case of recreational vehicles, six18
percent of the manufacturer's wholesale price. Such notice shall be in writing19
and a copy thereof shall be delivered to the purchaser prior to or simultaneous20
with transfer of the motorcycle or all-terrain vehicle title.21
B. This Section shall apply to all instances of vehicular body or22
mechanical damage to motorcycles or all-terrain vehicles and to all actions23
involving such damage, notwithstanding the application of other codal,24
statutory, or regulatory provisions, including but not limited to Civil Code25
Articles 2520 et seq.26
§1270.15. Sale of water-damaged motorcycles or all-terrain vehicles27
A. No person shall sell, transfer, or convey any new or used motorcycle28
or all-terrain vehicle to any person without notifying the buyer or receiver of29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 58 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the motorcycle or all-terrain vehicle in writing of the extent of any water1
damage from flooding which occurred to the motorcycle or all-terrain vehicle2
prior to the transaction.3
B. If a sale, transfer, or conveyance of a new or used motorcycle or all-4
terrain vehicle occurs in violation of Subsection A of this Section, the person5
receiving ownership and title to the motorcycle or all-terrain vehicle who is not6
otherwise aware of the damage at the time of the transaction may bring an7
action to set aside the transaction within one year from the date of the8
transaction and receive all monies or other property given as consideration for9
the motorcycle or all-terrain vehicle less a reasonable assessment for miles10
driven.11
C. For the purposes of this Section, a "water-damaged motorcycle or all-12
terrain vehicle" means any motorcycle or all-terrain vehicle whose power train,13
computer, or electrical system has been damaged by flooding.14
§1270.16. Motorcycle or all-terrain vehicle lessors; appointment of motorcycle15
or all-terrain vehicle lease facilitators16
A.(1) Except as otherwise provided by this Chapter, a motorcycle or all-17
terrain vehicle lessor franchisor may not terminate a franchise prior to the18
expiration of its term, except for good cause. Good cause shall include but not19
be limited to the failure of the franchisee to comply with any lawful requirement20
of the franchise, after being given notice thereof, and a reasonable opportunity,21
which in no event need be more than thirty days, to cure the failure. Nothing22
herein shall permit the cancellation of a franchise solely for failure to meet23
performance standards based on a survey of sales penetration in a regional,24
national, territorial, or other geographic area.25
(2) If during the period in which the franchise granted by a motorcycle26
or all-terrain vehicle lessor franchisor is in effect, there occurs any of the27
following events, which is relevant to the franchise, immediate notice of28
termination without opportunity to cure shall be reasonable:29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 59 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(a) The franchisee abandons the franchise by failing to operate the1
business for five consecutive days during which the franchisee is required to2
operate the business under the terms of the franchise, unless such failure to3
operate is due to fire, flood, or storms beyond the franchisee's control.4
(b) The motorcycle or all-terrain vehicle lessor franchisor and the5
franchisee agree in writing to terminate the franchise.6
(c) The franchisee fails, for a period of ten days following notification of7
noncompliance, to comply with any federal, state, or local law or regulation8
applicable to the operation of the franchise.9
(d) The franchised business or business premises of the franchise is10
seized, taken over, or foreclosed on by a creditor, lienholder, or lessor, provided11
that a final judgment against the franchisee remains unsatisfied for thirty days,12
unless an appeal bond has been filed.13
(e) The franchisee fails to pay any franchise fees or other amounts due14
to the franchisor within ten days of receiving written notice that such fees are15
overdue.16
(3)(a) No motorcycle or all-terrain vehicle lessor franchisor shall fail to17
renew a franchise unless the franchisor provides the following:18
(i) Written notice to the franchisee at least one hundred eighty days prior19
to his intention not to renew.20
(ii) The franchisee with an opportunity to sell his business, during the21
one hundred eighty days prior to the expiration of the franchise, to a purchaser22
meeting the franchisor's then current requirements for granting new franchises,23
or if not granting a significant number of new franchises, then the current24
requirements for granting renewal franchises.25
(iii) That the refusal not to renew is not for the purpose of converting the26
franchisee's business premises to operation by employees or agents of the27
franchisor for such franchisor's own account, provided that nothing in this28
Section shall prohibit a franchisor from exercising a right of first refusal to29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 60 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
purchase a franchisee's business.1
(iv) That upon expiration of the franchise, the franchisor agrees not to2
seek to enforce any covenant of the unrenewed franchisee not to compete with3
the franchisor or franchisees of the franchisor.4
(b) Termination of a franchise shall be permitted pursuant to5
Paragraphs (1) and (2) of this Subsection, or if the franchisee and the franchisor6
agree not to renew the franchise.7
B.(1) A motorcycle or all-terrain vehicle lessor may appoint one or more8
lease facilitators licensed pursuant to the terms of this Chapter to represent the9
motorcycle or all-terrain vehicle lessor in obtaining prospective lease customers.10
An appointment complies with the requirements of this Subsection if it is in11
writing, discloses its terms, and otherwise complies with the rules of the12
commission.13
(2) In a lease contract or agreement between a motorcycle or all-terrain14
vehicle lessor and a lessee solicited, procured, or produced by a lease facilitator,15
the motorcycle or all-terrain vehicle lessor shall disclose to the lessee that a fee16
was paid, or will be paid to the lease facilitator for the solicitation, procurement,17
or production of the lessee or the lease. The motorcycle or all-terrain vehicle18
lessor shall include the disclosure required by this Paragraph in a prominent19
position in one or both of the following manners:20
(a) On the face of the written memorandum of the lease, contract, or21
agreement.22
(b) On a separate instrument signed by the lessee at the same time as the23
signing of the lease contract or agreement.24
C.(1) Except as otherwise provided by this Section, a lease facilitator may25
accept a fee for procuring a motorcycle or all-terrain vehicle lessee or26
prospective motorcycle or all-terrain vehicle lessee for or on behalf of a lessor.27
(2) Nothing in this Section shall limit the ability of a lease facilitator to28
accept an appointment from more than one lessor.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 61 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(3) Nothing in this Section shall prohibit a lease facilitator from1
representing a lessor or lessee in the acquisition of a motorcycle or all-terrain2
vehicle for the purpose of leasing the motorcycle or all-terrain vehicle to3
another person.4
§1270.17. Succession; right of first refusal5
A. The terms of the franchise notwithstanding, any motorcycle or all-6
terrain vehicle dealer may appoint by will, or other written instrument, a7
designated successor to succeed in the ownership interest of the motorcycle or8
all-terrain vehicle dealer in the dealership upon the death or incapacity of the9
motorcycle or all-terrain vehicle dealer.10
B. Unless good cause exists for refusal to honor the succession on the11
part of the manufacturer or distributor, any designated successor of a deceased12
or incapacitated motorcycle or all-terrain vehicle dealer of a dealership may13
succeed to the ownership of the dealership under the existing franchise if:14
(1) The designated successor gives the manufacturer or distributor15
written notice of his or her intention to succeed to the ownership of the16
motorcycle or all-terrain vehicle dealer within sixty days of the motorcycle or17
all-terrain vehicle dealer's death or incapacity.18
(2) The designated successor agrees to be bound by all the terms and19
conditions of the franchise.20
C. The manufacturer or distributor may request, and the designated21
successor shall provide, promptly upon such request, personal and financial22
data reasonably necessary to determine whether the succession should be23
honored.24
D. If a manufacturer or distributor believes that good cause exists for25
refusing to honor the succession of a deceased or incapacitated motorcycle or26
all-terrain vehicle dealer, the manufacturer or distributor may, not more than27
sixty days following receipt of notice of the designated successor's intent to28
succeed and receipt of such personal or financial data, serve upon the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 62 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
designated successor notice of its refusal to honor the succession and of its intent1
to discontinue the existing franchise with the motorcycle or all-terrain vehicle2
dealer not earlier than six months from the date such notice is served.3
E. The notice must state the specific grounds for the refusal to honor the4
succession.5
F. If notice of refusal and discontinuance is not timely served upon the6
designated successor, the franchise shall continue in effect subject to7
termination only as otherwise permitted by this Chapter.8
G. In determining whether good cause for the refusal to honor the9
succession exists, the manufacturer or distributor has the burden of proving10
that the designated successor is not of good moral character or does not11
otherwise meet the manufacturer's or distributor's reasonable standards as a12
franchisee.13
H. If a manufacturer or distributor refuses to honor the succession to14
the ownership interest of a deceased or incapacitated owner for good cause, then15
and in such event:16
(1) The manufacturer or distributor shall allow the designated successor17
a reasonable period of time which shall not be less than six months in which to18
consummate a sale of the dealership. Any such sale shall be subject to R.S.19
32:1270.11(1)(c).20
(2) Upon termination of the franchise pursuant to such refusal, the21
provisions of R.S. 32:1270.18 shall apply.22
§1270.18. Requirements upon termination; penalty; indemnity; motorcycle or23
all-terrain vehicle dealers24
A.(1) In the event the licensee ceases to engage in the business of being25
a motorcycle or all-terrain vehicle dealer, or ceases to sell a particular make of26
motorcycle or all-terrain vehicle and after notice to the manufacturer,27
converter, distributor, or representative by certified mail or commercial28
delivery service with verification of receipt, within thirty days of the receipt of29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 63 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the notice by the manufacturer, converter, distributor, or representative, the1
manufacturer, converter, distributor, or representative shall repurchase:2
(a) All new motorcycles or all-terrain vehicles of the current and last3
prior model year delivered to the licensee and parts on hand that have not been4
damaged or substantially altered to the prejudice of the manufacturer while in5
the possession of the licensee. As to motorcycle or all-terrain vehicle dealers,6
the repurchase of parts shall be limited to those listed in the manufacturer's7
price book. The motorcycle or all-terrain vehicles and parts shall be8
repurchased at the cost to the licensee which shall include without limitation9
freight and advertising costs, less all allowances paid to the motorcycle or all-10
terrain vehicle dealer.11
(b) At fair market value, each undamaged sign owned by the motorcycle12
or all-terrain vehicle dealer which bears a trademark or trade name used or13
claimed by the manufacturer, converter, distributor, or representative if the14
sign was purchased from or purchased at the request of the manufacturer,15
distributor, or representative. Fair market value shall be no less than cost of16
acquisition of the sign by the motorcycle or all-terrain vehicle dealer.17
(c) At fair market value, all special tools and automotive service18
equipment owned by the motorcycle or all-terrain vehicle dealer which were19
recommended in writing and designated as special tools and equipment and20
purchased from or purchased at the request of the manufacturer, converter,21
distributor, or representative, if the tools and equipment are in usable and good22
condition except for reasonable wear and tear. Fair market value shall be no23
less than cost of acquisition of special tools and automotive service equipment24
by the motorcycle or all-terrain vehicle dealer.25
(d) The manufacturer, converter, distributor, or representative shall pay26
to the motorcycle or all-terrain vehicle dealer the costs of transporting,27
handling, packing, and loading of motorcycles or all-terrain vehicles, or parts,28
signs, tools, and equipment subject to repurchase.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 64 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2) The manufacturer or converter shall make the required repurchase1
after the dealer terminates his franchise and within sixty days of the submission2
to it, by certified mail, return receipt requested, or commercial delivery service3
with verification of receipt, of a final inventory of motorcycles, all-terrain4
vehicles, and parts on hand.5
B. Failure to make such repurchase without just cause shall subject the6
manufacturer or converter to a penalty of one and one-half percent per month,7
or fraction thereof, of the inventory value or returnable motorcycles or all-8
terrain vehicles, and parts, signs, special tools, and automotive service9
equipment, payable to the dealer, as long as the repurchase is not made.10
§1270.19. Manufacturer termination of line-make; manufacturer bankruptcy;11
license; motorcycle or all-terrain vehicle franchise12
Notwithstanding the terms of any franchise or other provision of law, if13
the termination, cancellation, or nonrenewal of a licensee's franchise is the14
result of the termination, elimination, or cessation of a line-make by the15
manufacturer, distributor, or factory branch, whether by bankruptcy or16
otherwise, the license issued by the commission may remain in effect at the17
discretion of the commission pursuant to its rules.18
§1270.20. Venue and choice of law for litigation or arbitration; motorcycle or19
all-terrain vehicle20
A provision contained in a franchise agreement requiring that21
arbitration or litigation be conducted outside this state or a provision that seeks22
to apply any law other than Louisiana law to disputes between the parties to a23
franchise agreement, is void and unenforceable.24
PART IV. PROVISIONS SPECIFIC TO RECREATIONAL VEHICLES25
§1270.21. Unauthorized acts; recreational vehicles26
It shall be a violation of this Chapter:27
(1) For a manufacturer, a distributor, a wholesaler, factory branch, or28
officer, agent, or other representative thereof:29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 65 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(a) To induce or coerce, or attempt to induce or coerce, any licensee:1
(i) To order or accept delivery of any recreational vehicles, appliances,2
equipment, parts or accessories therefor, or any other commodity or3
commodities which shall not have been voluntarily ordered.4
(ii) To order or accept delivery of any recreational vehicle with special5
features, appliances, accessories, or equipment not included in the list price of6
said recreational vehicles as publicly advertised.7
(iii) To order for any person any parts, accessories, equipment,8
machinery, tools, appliances, or any commodity whatsoever.9
(iv) To assent to a release, assignment, novation, waiver, or estoppel10
which would relieve any person from liability to be imposed by law, unless done11
in connection with a settlement agreement to resolve a matter pending a12
commission hearing or pending litigation between a manufacturer, distributor,13
wholesaler, or factory branch, or officer, agent, or other representative thereof.14
(v) To enter into a franchise with a licensee or during the franchise term,15
use any written instrument, agreement, release, assignment, novation, estoppel,16
or waiver, to attempt to nullify or modify any provision of this Chapter, or to17
require any controversy between a recreational vehicle dealer and a18
manufacturer to be referred to any person or entity other than the commission,19
or duly constituted courts of this state or the United States, if such referral20
would be binding upon the recreational dealer. Such instruments are null and21
void, unless done in connection with a settlement agreement to resolve a matter22
pending a commission hearing or pending litigation.23
(vi) To waive the right to a jury trial.24
(vii) To participate in an advertising group or to participate monetarily25
in an advertising campaign or contest or to purchase any promotional26
materials, showroom, or other display decorations or materials at the expense27
of such recreational vehicle dealer.28
(viii) To release, convey, or otherwise provide customer information, if29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 66 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to do so is unlawful or if the customer objects in writing. This does not include1
information that is necessary for the manufacturer to meet its obligations to the2
recreational vehicle dealer or consumers in regard to contractual3
responsibilities, recreational vehicle recalls, or other requirements imposed by4
state or federal law. The manufacturer is further prohibited from providing any5
consumer information received from the recreational vehicle dealer to any6
unaffiliated third party.7
(ix) To pay the attorney fees of the manufacturer or distributor related8
to hearings and appeals brought under this Chapter.9
(b) To refuse to deliver to any licensee having a franchise or contractual10
arrangement for the retail sale of recreational vehicles sold or distributed by11
such manufacturer, distributor, wholesaler, or factory branch, any recreational12
vehicle, publicly advertised for immediate delivery, within sixty days after such13
recreational vehicle dealer's order shall have been received.14
(c) To threaten to cancel any franchise or any contractual agreement15
existing between such manufacturer, distributor, wholesaler, or factory branch16
and said recreational vehicle dealer for any reason.17
(d) To unfairly, without just cause and due regard to the equities of such18
recreational vehicle dealer, cancel the franchise of any licensee. The19
nonrenewal of a franchise or selling agreement with such recreational vehicle20
dealer or his successor without just provocation or cause, or the refusal to21
approve a qualified transferee or qualified successor to the dealer-operator as22
provided for in the franchise agreement, shall be deemed an evasion of this23
Paragraph and shall constitute an unfair cancellation, regardless of the terms24
or provisions of such franchise. However, at least ninety-days notice shall be25
given to the recreational vehicle dealer of any cancellation or nonrenewal of a26
franchise except for a cancellation arising out of the financial default of the27
recreational vehicle dealer or fraudulent activity of the recreational vehicle28
dealer principal which results in the conviction of a crime punishable by29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 67 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
imprisonment.1
(e) To refuse to extend to a licensee the privilege of determining the mode2
or manner of available transportation facility that such recreational vehicle3
dealer desires to be used or employed in making deliveries of recreational4
vehicles to him or it.5
(f) To resort to or use any false or misleading advertisement in6
connection with his business as such manufacturer of recreational vehicles,7
distributor, wholesaler, or factory branch, or officer, agent, or other8
representative thereof.9
(g) To delay, refuse, or fail to deliver recreational vehicles in reasonable10
quantities relative to the licensee's facilities and sales potential in the relevant11
market area. This Subparagraph shall not be valid, however, if such failure is12
caused by acts or causes beyond the control of the manufacturer, distributor,13
or other such party.14
(h) To ship or sell recreational vehicles to a licensee prior to the licensee15
having been granted a license by the commission to sell such recreational16
vehicles.17
(i) To unreasonably withhold consent to the sale, transfer, or exchange18
of the franchise to a qualified transferee capable of being licensed as a19
recreational vehicle dealer in this state, provided the transferee meets the20
criteria generally applied by the manufacturer in approving new recreational21
vehicle dealers and agrees to be bound by all the terms and conditions of the22
standard franchises.23
(j) To fail to respond in writing to a written request for consent as24
specified in Subparagraph (i) above within sixty days of receipt of a written25
request on the forms, if any, generally utilized by the manufacturer or26
distributor for such purposes and containing the information required therein.27
Failure to respond shall be deemed to be consent to the request.28
(k)(i) To sell or offer to sell a new or unused recreational vehicle directly29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 68 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to a consumer except as provided in this Chapter, or to compete with a licensee1
in the same-line makes, models, or classifications operating under an agreement2
or franchise from the aforementioned manufacturer. A manufacturer shall not,3
however, be deemed to be competing when any one of the following conditions4
are met:5
(aa) Operating a dealership temporarily for a reasonable period, not to6
exceed two years.7
(bb) Operating a bona fide retail dealership which is for sale to any8
qualified independent person at a fair and reasonable price, not to exceed two9
years.10
(cc) Operating in a bona fide relationship in which a person independent11
of a manufacturer has made a significant investment subject to loss in the12
dealership, and can reasonably expect to acquire full ownership of such13
dealership on reasonable terms and conditions.14
(ii) After any of the conditions have been met under Subitems (aa) and15
(bb) of Item (i) of this Subparagraph, the commission shall allow the16
manufacturer to compete with licensees of the same-line makes, models, or17
classifications under an agreement or franchise from said manufacturer for18
longer than two years when, in the discretion of the commission, the best19
interest of the manufacturer, consuming public, and licensees are best served.20
(l) To condition the renewal or extension of a franchise on a new21
recreational vehicle dealer's substantial renovation of the recreational vehicle22
dealer's place of business or on the construction, purchase, acquisition, or rental23
of a new place of business by the new recreational vehicle dealer, unless the24
manufacturer has advised the new recreational vehicle dealer in writing of its25
intent to impose such a condition within a reasonable time prior to the effective26
date of the proposed date of renewal or extension, but in no case less than one27
hundred eighty days, and provided the manufacturer demonstrates the need for28
such demand in view of the need to service the public and the economic29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 69 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
conditions existing in the recreational vehicle industry at the time such action1
would be required of the new recreational vehicle dealer. As part of any such2
condition the manufacturer shall agree, in writing, to supply the recreational3
dealer with an adequate supply and marketable model mix of recreational4
vehicles to meet the sales levels necessary to support the increased overhead5
incurred by the recreational vehicle dealer by reason of such renovation,6
construction, purchase, or rental of a new place of business.7
(m) To fail to compensate its recreational vehicle dealers for the work8
and services they are required to perform in connection with the recreational9
vehicle dealer's delivery and preparation obligations according to the terms of10
compensation that shall be filed with the commission on or before October first11
of each year. The commission shall find the compensation to be reasonable or12
the manufacturer shall remedy any deficiencies.13
(n) To fail to designate and provide to the commission in writing the14
community or territory assigned to a licensee.15
(o) To unreasonably discriminate among competing, similarly situated,16
same-line make dealers in the sales of recreational vehicles, in the availability17
of such recreational vehicles, in the terms of incentive programs or sales18
promotion plans, or in other similar programs.19
(p) To terminate, cancel, or refuse to continue any franchise agreement20
based upon the fact that the recreational vehicle dealer owns, has an investment21
in, participates in the management, or holds a franchise agreement for the sale22
or service of another make or line of new recreational vehicles at a different23
dealership location, or intends to or has established another make or line of new24
recreational vehicles in the same dealership facilities of the manufacturer or25
distributor.26
(q) To demand compliance with facilities requirements that include any27
requirements that a recreational vehicle dealer establish or maintain exclusive28
office, parts, service or body shop facilities, unless such requirements would be29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 70 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
reasonable and justified by business considerations. The burden of proving that1
such requirements are reasonable and justified by business considerations is on2
the manufacturer. If the franchise agreement of the manufacturer or3
distributor requires the approval of the manufacturer or distributor for facility4
uses or modifications, the manufacturer or distributor shall approve or5
disapprove such a request in writing within sixty days of receipt of such request.6
(r) To use any subsidiary, affiliate, or any other controlled person or7
entity, or to employ the services of a third party, to accomplish what would8
otherwise be illegal conduct under this Chapter on the part of the manufacturer9
or distributor.10
(s) To make a change in the area of responsibility described in the11
franchise agreement or sales and service agreement of a recreational vehicle12
dealer, without the franchisor or manufacturer giving said recreational vehicle13
dealer and the commission no less than sixty days prior written notice by14
certified or registered mail.15
(t) To attempt to induce or coerce, or to induce or coerce, any16
recreational vehicle dealer to enter into any agreement with such manufacturer,17
distributor, wholesaler, distributor branch or factory branch or representative18
thereof, or to do any other act unfair to said recreational vehicle dealer.19
(u)(i) To coerce or attempt to coerce any retail recreational vehicle20
dealer or prospective retail recreational vehicle dealer to offer to sell or sell any21
extended service contract or extended maintenance plan or gap product offered,22
sold, backed by, or sponsored by the manufacturer or distributor or affiliate or23
sell, assign, or transfer any retail installment sales contract or lease obtained by24
the dealer in connection with the sale or lease by him of recreational vehicles25
manufactured or sold by the manufacturer or distributor, to a specified finance26
company or class of finance companies, leasing company or class of leasing27
companies, or to any other specified persons by any of the following:28
(aa) By any statement, promise, or threat that the manufacturer or29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 71 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
distributor will in any manner benefit or injure the dealer, whether the1
statement, suggestion, threat, or promise is express or implied or made directly2
or indirectly.3
(bb) By any act that will benefit or injure the dealer.4
(cc) By any contract, or any express or implied offer of contract, made5
directly or indirectly to the dealer, for handling the recreational vehicle on the6
condition that the recreational vehicle dealer shall offer to sell or sell any7
extended service contract or extended maintenance plan offered, sold, backed8
by, or sponsored by the manufacturer or distributor or that the dealer sell,9
assign, or transfer his retail installment sales contract on or lease of the10
recreational vehicle, to a specified finance company or class of finance11
companies, leasing company or class of leasing companies, or to any other12
specified person.13
(dd) Any such statements, threats, promises, acts, contracts, or offers of14
contracts, when their effect may be to lessen or eliminate competition.15
(ii) Nothing contained in this Subparagraph shall prohibit a16
manufacturer or distributor from offering or providing incentive benefits or17
bonus programs to a retail recreational vehicle dealer or prospective retail18
recreational vehicle dealer who makes the voluntary decision to offer to sell or19
sell any extended service contract or extended maintenance plan offered, sold,20
backed, or sponsored by the manufacturer or distributor or to sell, assign, or21
transfer any retail installment sale or lease by him of recreational vehicles22
manufactured or sold by the manufacturer or distributor to a specified finance23
company or leasing company.24
(2) For a recreational vehicle dealer or a recreational vehicle salesman:25
(a) To require a purchaser of a recreational vehicle, as a condition of sale26
and delivery thereof, to also purchase special features, appliances, accessories,27
or equipment not desired or requested by the purchaser; however, this28
prohibition shall not apply as to special features, appliances, accessories, or29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 72 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
equipment which are permanently affixed to the recreational vehicle.1
(b) To represent and sell as a new recreational vehicle any vehicle, the2
legal title of which has been transferred by a manufacturer, distributor, or3
dealer to an ultimate purchaser.4
(c) To resort to or use any false or misleading advertisement in5
connection with his business as such recreational vehicle dealer or recreational6
vehicle salesman.7
(d) To sell or offer to sell makes, models, or classifications of new8
recreational vehicles for which no franchise and license to sell is held.9
(e) Except as otherwise approved by the commission, to sell or offer to10
sell a recreational vehicle from an unlicensed location.11
(f) To deliver to a prospective purchaser a new recreational vehicle on12
a sale conditioned on financing, i.e., a spot delivery, except on the following13
terms and conditions which shall be in writing and shall be a part of the14
conditional sales contract or other written notification signed by the purchaser:15
(i) That if the sale is not concluded by the financing of the sale to the16
purchaser within twenty-five days of the delivery, the sale contract shall be null17
and void.18
(ii) That the recreational vehicle being offered for trade-in by the19
purchaser shall not be sold by the recreational vehicle dealer until the20
conditional sale is complete.21
(iii) That there shall be no charge to the purchaser should the conditional22
sale not be completed, including but not limited to mileage charges or charges23
to refurbish the recreational vehicle offered for trade-in. However, the24
purchaser shall be responsible for any and all damages to the recreational25
vehicle or other vehicles damaged by the fault of the purchaser and any and all26
liability incurred by the purchaser during the purchaser's custody of the27
recreational vehicle to the extent provided for in R.S. 22:1296.28
(iv) That if the conditional sale is not completed, the recreational vehicle29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 73 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
dealer shall immediately refund to the purchaser upon return of the1
recreational vehicle all sums placed with the dealership as a deposit or any2
other purpose associated with the attempted sale of the vehicle.3
(v) That the prospective purchaser shall return the recreational vehicle4
to the dealership within forty-eight hours of notification by the recreational5
vehicle dealer that the conditional sale will not be completed. If the prospective6
purchaser does not return the recreational vehicle to the dealership within7
forty-eight hours of notification by the recreational vehicle dealer, an8
authorized agent of the recreational vehicle dealer shall have the right to9
recover the recreational vehicle without the necessity of judicial process,10
provided that such recovery can be accomplished without unauthorized entry11
into a closed dwelling, whether locked or unlocked and without a breach of12
peace.13
(g) To pay a fee to any person in return for the solicitation, procurement,14
or production by that person of prospective purchasers for new and used15
recreational vehicles, except to a recreational vehicle salesman licensed under16
the provisions of this Chapter.17
(h) To fail to fully and completely explain each charge listed on a retail18
buyer's order or recreational vehicle invoice prior to the purchase of a19
recreational vehicle.20
(i) When selling a recreational vehicle to a consumer, to assess any21
consumer services fees, which shall include fees for treating the interior22
upholstery of the recreational vehicle, oil changes, roadside assistance, dealer23
inspections, or any other service offered by the recreational vehicle dealer,24
without allowing the buyer to refuse such services and be exempt from payment25
for such services. The provisions of this Subparagraph shall not apply to dealer-26
added options or accessories which are permanently affixed to the recreational27
vehicle.28
(j)(i) To fail to disclose to a purchaser in writing on the sales contract,29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 74 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
buyer's order, or any other document that the recreational vehicle dealer may1
be participating in finance charges associated with the sale.2
(ii) To participate in a finance charge that would result in a difference3
between the buy rate and the contract rate of more than three percentage4
points.5
(iii) The provisions of this Subparagraph shall apply only to transactions6
subject to the Louisiana Motor Vehicle Sales Finance Act.7
(3) For a recreational vehicle lessor or recreational vehicle lessor agent:8
(a) To represent and sell as a new recreational vehicle any recreational9
vehicle which has been used or intended to be used and operated for leasing and10
rental purposes.11
(b) To resort to or use any false or misleading advertising in connection12
with the business of leasing or renting recreational vehicles.13
(c) To lease, rent, sell, or offer to sell a recreational vehicle from a14
location not licensed for such activity.15
(d) To rent or lease any recreational vehicle which has been located16
within this state for a period of thirty days or more, unless such recreational17
vehicle has been issued a Louisiana license plate by, and all license fees and18
taxes have been paid to, this state.19
(e) To pay a fee to any person in return for the solicitation, procurement,20
or production by that person of prospective lessees of recreational vehicles,21
unless the person receiving the fee is a lease facilitator who holds a valid license22
as provided by this Chapter and a valid appointment from the recreational23
vehicle lessor as provided by R.S. 32:1270.29(B)(1). The fees prohibited by this24
Subparagraph shall not include amounts paid to a recreational vehicle dealer25
as part of the consideration for the sale or assignment of a lease or leased26
vehicle or other amounts paid to the recreational vehicle dealer who transfers27
the title on the recreational vehicle or assigns the lease contract to the28
recreational vehicle lessor.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 75 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(f) To fail to fully and completely explain each charge listed on a retail1
buyer's or lessee's order or vehicle invoice or leasing agreement prior to the2
lease of a recreational vehicle.3
(g) When leasing a recreational vehicle to a consumer, to assess any4
consumer services fees, which shall include fees for treating the interior5
upholstery of the vehicle, oil changes, roadside assistance, dealer inspections, or6
any other service offered by the recreational vehicle lessor, without allowing the7
consumer to refuse such services and be exempt from payment for such services.8
The provisions of this Subparagraph shall not apply to recreational vehicle9
lessor-added options or accessories which are permanently affixed to the10
recreational vehicle.11
(4) For a lease facilitator:12
(a) To hold himself out to any person as a "leasing company", "leasing13
agent", "lease facilitator", or similar title, directly or indirectly engaged in the14
business of a lease facilitator, or otherwise engaged in the solicitation or15
procurement of prospective lessees for recreational vehicles not titled in the16
name of and registered to the lease facilitator, without holding a valid lease17
facilitator license and being in compliance with the terms of this Chapter.18
(b) To sell or offer to sell a new recreational vehicle.19
(c) To accept a fee from a dealer or consumer.20
(d) To sign a recreational vehicle manufacturer's statement of origin to21
a vehicle, accept an assignment of a manufacturer's statement of origin to a22
vehicle, or otherwise assume any element of title to a new recreational vehicle.23
(e) To procure or solicit prospective lessees for or on behalf of any person24
other than a recreational vehicle lessor.25
(f) To act in the capacity of or engage in the business of a lease facilitator26
without a valid appointment from a recreational vehicle lessor to act on behalf27
of the recreational vehicle lessor in soliciting prospective lease clients or28
customers as provided by this Chapter.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 76 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(5) For a broker:1
(a) To hold himself out to any person as a "broker", "purchasing2
company", "sales agent", or similar title, engaged in the business of broker, or3
otherwise engaged in the solicitation or procurement of prospective purchasers4
for recreational vehicles not titled in the name of and registered to the broker,5
unless the broker holds a valid broker license and is in compliance with the6
terms of this Chapter.7
(b) To sell, or offer to sell, or display a new recreational vehicle.8
(c) To be paid a fee by a recreational vehicle dealer.9
(d) To sign a recreational vehicle manufacturer's statement of origin to10
a vehicle, accept an assignment of a manufacturer's statement of origin to a11
vehicle, or otherwise assume any element of title to a new recreational vehicle.12
(e) To act in the capacity of or engage in the business of a broker without13
a valid license issued as provided by this Chapter and a valid appointment from14
a recreational vehicle lessor to act on behalf of the recreational vehicle lessor in15
soliciting prospective lease clients or customers as provided by this Chapter.16
(f) To fail to execute a written brokering agreement and provide a17
completed copy to both of the following:18
(i) Any consumer entering into the brokering agreement. The completed19
copy shall be provided prior to the consumer's signing an agreement for the20
purchase of the recreational vehicle described in the brokering agreement, or,21
prior to accepting one hundred dollars or more from that consumer, whichever22
comes first.23
(ii) The selling dealer. The completed copy shall be provided prior to the24
selling recreational vehicle dealer's entering into a purchase agreement with the25
consumer at the time of delivery.26
(g) To accept a purchase deposit from any consumer that exceeds two27
point five percent of the selling price of the recreational vehicle described in the28
brokering agreement.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 77 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(h) To fail to refund any purchase money, including purchase deposits,1
upon demand by a consumer at any time prior to the consumer's signing a2
vehicle purchase agreement with a selling dealer of the vehicle described in the3
brokering agreement.4
(i) To fail to cancel a brokering agreement and refund, upon demand,5
any money paid by a consumer, including any brokerage fee, under any of the6
following circumstances:7
(i) When the final price of the brokered recreational vehicle exceeds the8
purchase price listed in the brokering agreement.9
(ii) When the recreational vehicle delivered is not as described in the10
brokering agreement.11
(iii) When the brokering agreement expires prior to the customer's being12
presented with a purchase agreement from a selling recreational vehicle dealer13
arranged through the brokering dealer that contains a purchase price at or14
below the price listed in the brokering agreement.15
(j) To act as a seller and provide brokering services, both in the same16
transaction.17
(k) To fail to disclose to the consumer the dollar amount of any fee that18
the consumer is obligated to pay to the broker. This arrangement shall be19
confirmed in a brokering agreement.20
(l) To fail to maintain, for a minimum of three years, a copy of the21
executed brokering agreement and other notices and documents related to each22
brokered transaction.23
(m) To fail to advise the consumer, prior to accepting any money, that24
a full refund will be given if the recreational vehicle ordered through the broker25
is not obtained for the consumer.26
(6) For any person or other licensee:27
(a) To modify a franchise during the term of the agreement or upon its28
renewal if the modification substantially and adversely affects the franchisee's29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 78 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
rights, obligations, investment, or return on investment without giving sixty-day1
written notice of the proposed modification to the licensee and the commission2
unless the modifications are required by law, court order, or the commission.3
Within the sixty-day notice period the licensee may file with the commission a4
complaint for a determination whether there is good cause for permitting the5
proposed modification. The party seeking to modify or replace an agreement6
shall demonstrate by a preponderance of the evidence that there is good cause7
for the modification or replacement. The commission shall schedule a hearing8
within sixty days to decide the matter. Multiple complaints pertaining to the9
same proposed modifications shall be consolidated for hearing. The proposed10
modification may not take effect pending the determination of the matter.11
(b) In making a determination of whether there is good cause for12
permitting a proposed modification, the commission may consider any relevant13
factor including:14
(i) The reasons for the proposed modification.15
(ii) Whether the proposed modification is applied to or affects all16
licensees in a nondiscriminating manner.17
(iii) The degree to which the proposed modification will have a18
substantial and adverse effect upon the licensee's investment or return on19
investment.20
(iv) Whether the proposed modification is in the public interest.21
(v) The degree to which the proposed modification is necessary to the22
orderly and profitable distribution of recreational vehicles and other services23
by the licensee.24
(vi) Whether the proposed modification is offset by other modifications25
beneficial to the licensee.26
(c) The decision of the commission shall be in writing and shall contain27
findings of fact and a determination of whether there is good cause for28
permitting the proposed modification. The commission shall deliver copies of29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 79 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the decision to the parties personally or by registered mail.1
(7) For any employee of a licensee while acting in the scope of his2
employment, to accept any payment, commission, fee, or compensation of any3
kind from any person other than the employing licensee, unless such payment4
is fully disclosed to and approved by the employing licensee.5
§1270.22. Indemnification of franchised recreational vehicle dealers6
Notwithstanding the terms of any franchise agreement, each7
manufacturer or converter shall indemnify and hold harmless its franchised8
recreational vehicle dealers against any judgment for damages, including but9
not limited to court costs and reasonable attorney fees of the recreational10
vehicle dealer, arising out of complaints, claims, or lawsuits including but not11
limited to strict liability, negligence, misrepresentation, express or implied12
warranty, or rescission of sale to the extent that the judgment arises out of13
alleged defective or negligent manufacture, assembly, or design of recreational14
vehicles, parts, or accessories, or other functions by the manufacturer of15
converter, which are beyond the control of the recreational vehicle dealer.16
§1270.23. Payment to recreational vehicles dealers; penalties17
It shall be a violation of this Chapter for a recreational vehicle18
manufacturer, distributor, wholesaler, factory branch, officer, agent or other19
representative thereof, to fail to pay a recreational vehicle dealer all monies due20
the recreational vehicle dealer, except manufacturer hold-back amounts, within21
thirty days of the date of completion of the transactions or submissions of the22
claims giving rise to the payments to the recreational vehicle dealers. Failure to23
make payments shall subject the manufacturer, distributor, wholesaler, factory24
branch, officer, agent, or other representative thereof, to a penalty of the one25
and one-half percent interest per month, or fraction thereof, until sums due the26
recreational vehicle dealer are fully paid.27
§1270.24. Warranty; compensation; audits of recreational vehicle dealer28
records29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 80 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
A.(1) It shall be a violation of this Chapter for a manufacturer, a1
distributor, a wholesaler, or factory branch, or officer, agent or other2
representative thereof, to fail to adequately and fairly compensate its3
recreational vehicle dealers for labor, parts, and other expenses incurred by4
such dealer to perform under and comply with a manufacturer's or a5
distributor's warranty agreement.6
(2) In no event shall any manufacturer or distributor pay its recreational7
vehicle dealers at a price or rate for warranty work that is less than that8
charged by the recreational vehicle dealer to the retail customers of the9
recreational vehicle dealer for nonwarranty work of like kind.10
(3) Warranty work includes parts and labor performed.11
(4) All claims made by the recreational vehicle dealer for compensation12
under this Subsection shall be paid within thirty days after approval and shall13
be approved or disapproved within thirty days after receipt. When any claim14
is disapproved, the recreational vehicle dealer shall be notified in writing of the15
grounds for disapproval.16
(5) The obligations in this Subsection may be modified by contract.17
B.(1) Notwithstanding the terms of any franchise agreement, warranty,18
and sales incentive, audits of recreational vehicle dealer records may be19
conducted by the manufacturer, distributor, or factory branch. Any audit for20
warranty parts or service compensation shall be for the twelve-month period21
immediately following the date of the payment of the claim by the manufacturer22
or distributor. However, a recreational vehicle dealer shall not be held liable by23
virtue of an audit for failure to retain parts for a period in excess of six months.24
Any audit for sales incentives, service incentives, rebates, or other forms of25
incentive compensation shall only be for the twelve-month period immediately26
following the date of the final payment to the recreational vehicle dealer under27
a promotion, event, program, or activity. In no event shall the manufacturer,28
distributor, or factory branch fail to allow the recreational vehicle dealer to29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 81 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
make corrections to the sales data in less than one hundred twenty days from1
the program period. Additionally, no penalty other than amounts advanced on2
a recreational vehicle reported incorrectly shall be due in connection with the3
audit. With respect to recreational vehicles sold during the time period subject4
to the audit, but submitted incorrectly to the manufacturer, distributor, or5
wholesale distributor branch or factory branch, the recreational vehicle dealer6
shall be charged back for the amount reported incorrectly and credited with the7
amount due, if anything, on the actual sale date.8
(2) No claim which has been approved and paid may be charged back to9
the recreational vehicle dealer unless it can be shown that one or all of the10
following applies:11
(a) The claim was false or fraudulent.12
(b) The repairs were not properly made.13
(c) The repairs were unnecessary to correct the defective condition under14
generally accepted standards of workmanship.15
(d) The recreational vehicle dealer failed to reasonably substantiate the16
repair in accordance with reasonable written requirements of the manufacturer17
or distributor, if the recreational vehicle dealer was notified of the requirements18
prior to the time the claim arose and if the requirements were in effect at the19
time the claim arose.20
(3) A manufacturer or distributor shall not deny a claim solely based on21
a recreational vehicle dealer's incidental failure to comply with a specific claim22
processing requirement, or a clerical error, or other administrative technicality23
(4) Limitations on warranty parts or service compensation, sales24
incentive audits, rebates, or other forms of incentive compensation, chargebacks25
for warranty parts or service compensation, and service incentives and26
chargebacks for sales compensation only shall not be effective in the case of27
intentionally false or fraudulent claims.28
(5) It shall be deemed an unfair act pursuant to this Chapter to audit a29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 82 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
recreational vehicle dealer more frequently than two sales-related and two1
service-related audits in a twelve-month period. Nothing in this Subsection shall2
limit a manufacturer's or distributor's ability to perform routine claim reviews3
in the normal course of business.4
(6) No claim may be rejected as late if it has been submitted within sixty5
days of the date the repair order was written.6
§1270.25. Recreational vehicle repairs7
Suppliers of mechanical repairs and services for any recreational vehicle8
subject to regulation pursuant to this Chapter shall provide each consumer with9
an itemized bill indicating repairs and services performed, parts replaced, or10
materials used, the total labor charge, and the identity of the mechanic,11
repairman, or supplier who performed the work. However, nothing in this12
Section shall prohibit a supplier of mechanical repairs and services from13
charging a service fee for the use of shop supplies such as rags, fender covers,14
small amounts of fluid, or other items which are not itemized, provided that15
such fee does not exceed five percent of the total invoice for mechanical repairs16
or thirty-five dollars, whichever is less.17
§1270.26. Damage disclosure; recreational vehicles18
A. Whenever a new recreational vehicle subject to regulation pursuant19
to this Part is sold to any person, the seller shall notify the purchaser of any20
body damage or mechanical damage which the recreational vehicle has21
sustained that exceeds six percent of the manufacturer's wholesale price. Such22
notice shall be in writing and a copy thereof shall be delivered to the purchaser23
prior to or simultaneous with transfer of the recreational vehicle title.24
B. Replacement of a new recreational vehicle's instrument panels,25
appliances, furniture, cabinetry, televisions, audio equipment, or similar26
residential components shall not be deemed "damage" pursuant to this Section27
if such items are replaced with original manufacturers' parts and materials.28
C. This Section shall apply to all instances of vehicular body or29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 83 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
mechanical damage to recreational vehicles and to all actions involving such1
damage, notwithstanding the application of other codal, statutory, or regulatory2
provisions, including but not limited to Civil Code Articles 2520 et seq.3
§1270.27. Notice regarding recalls; recreational vehicles4
It shall be a violation of this Part for a recreational vehicle dealer to sell5
a new recreational vehicle without first supplying a prospective buyer with the6
following notice: "A new recreational vehicle may have been subject to a7
National Highway Traffic Safety Administration required recall which would8
be repaired in accordance with manufacturer standards approved by the9
National Highway Traffic Safety Administration. If such a repair is a concern10
before you purchase, please ask for a copy of the recall notice, if applicable, to11
the recreational vehicle being sold." This notice shall be included on the buyer's12
order in a box and in bold print which is signed by the buyer and the seller or13
his representative next to the box. If the buyer requests the recall notice, the14
recall notice shall be included in the sales transaction. If the selling recreational15
vehicle dealer performed the repair, the documents supporting the repair shall16
also be included in the sales transaction.17
§1270.28. Sale of water-damaged recreational vehicles18
A. No person shall sell, transfer, or convey any new or used recreational19
vehicle to any person without notifying the buyer or receiver of the recreational20
vehicle in writing of the extent of any water damage from flooding which21
occurred to the recreational vehicle prior to the transaction.22
B. If a sale, transfer, or conveyance of a new or used recreational vehicle23
occurs in violation of Subsection A of this Section, the person receiving24
ownership and title to the recreational vehicle who is not otherwise aware of the25
damage at the time of the transaction may bring an action to set aside the26
transaction within one year from the date of the transaction and receive all27
monies or other property given as consideration for the vehicle less a reasonable28
assessment for miles driven.29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 84 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
C. For the purposes of this Section, a "water-damaged vehicle" means1
any recreational vehicle whose power train, computer, or electrical system has2
been damaged by flooding.3
§1270.29. Recreational vehicle lessors; appointment of recreational vehicle4
lease facilitators5
A.(1) Except as otherwise provided by this Chapter, a recreational6
vehicle lessor franchisor may not terminate a franchise prior to the expiration7
of its term, except for good cause. Good cause shall include but not be limited8
to the failure of the franchisee to comply with any lawful requirement of the9
franchise, after being given notice thereof, and a reasonable opportunity, which10
in no event need be more than thirty days, to cure the failure.11
(2) If during the period in which the franchise granted by a recreational12
vehicle lessor franchisor is in effect, there occurs any of the following events,13
which is relevant to the franchise, immediate notice of termination without14
opportunity to cure shall be reasonable:15
(a) The franchisee abandons the franchise by failing to operate the16
business for five consecutive days during which the franchisee is required to17
operate the business under the terms of the franchise, unless such failure to18
operate is due to fire, flood, or storms beyond the franchisee's control.19
(b) The recreational vehicle lessor franchisor and the franchisee agree20
in writing to terminate the franchise.21
(c) The franchisee fails, for a period of ten days following notification of22
noncompliance, to comply with any federal, state, or local law or regulation23
applicable to the operation of the franchise.24
(d) The franchised business or business premises of the franchise is25
seized, taken over, or foreclosed on by a creditor, lienholder, or lessor, provided26
that a final judgment against the franchisee remains unsatisfied for thirty days,27
unless an appeal bond has been filed.28
(e) The franchisee fails to pay any franchise fees or other amounts due29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 85 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to the franchisor within ten days of receiving written notice that such fees are1
overdue.2
(3)(a) No recreational vehicle lessor franchisor shall fail to renew a3
franchise unless the franchisor provides the following:4
(i) Written notice to the franchisee at least one hundred eighty days prior5
to his intention not to renew.6
(ii) The franchisee with an opportunity to sell his business, during the7
one hundred eighty days prior to the expiration of the franchise, to a purchaser8
meeting the franchisor's then current requirements for granting new franchises,9
or if not granting a significant number of new franchises, then the current10
requirements for granting renewal franchises.11
(iii) That the refusal not to renew is not for the purpose of converting the12
franchisee's business premises to operation by employees or agents of the13
franchisor for such franchisor's own account, provided that nothing in this14
Section shall prohibit a franchisor from exercising a right of first refusal to15
purchase a franchisee's business.16
(iv) That upon expiration of the franchise, the franchisor agrees not to17
seek to enforce any covenant of the unrenewed franchisee not to compete with18
the franchisor or franchisees of the franchisor.19
(b) Termination of a franchise shall be permitted pursuant to20
Paragraphs (1) and (2) of this Subsection, or if the franchisee and the franchisor21
agree not to renew the franchise.22
B.(1) A recreational vehicle lessor may appoint one or more lease23
facilitators licensed pursuant to the terms of this Chapter to represent the24
recreational vehicle lessor in obtaining prospective lease customers. An25
appointment complies with the requirements of this Subsection if it is in writing,26
discloses its terms, and otherwise complies with the rules of the commission.27
(2) In a lease contract or agreement between a recreational vehicle lessor28
and a lessee solicited, procured, or produced by a lease facilitator, the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 86 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
recreational vehicle lessor shall disclose to the lessee that a fee was paid, or will1
be paid to the lease facilitator for the solicitation, procurement, or production2
of the lessee or the lease. The recreational vehicle lessor shall include the3
disclosure required by this Paragraph in a prominent position in one or both of4
the following manners:5
(a) On the face of the written memorandum of the lease, contract, or6
agreement.7
(b) On a separate instrument signed by the lessee at the same time as the8
signing of the lease contract or agreement.9
C.(1) Except as otherwise provided by this Section, a lease facilitator may10
accept a fee for procuring a vehicle lessee or prospective vehicle lessee for or on11
behalf of a lessor.12
(2) Nothing in this Section shall limit the ability of a lease facilitator to13
accept an appointment from more than one lessor.14
(3) Nothing in this Section shall prohibit a lease facilitator from15
representing a lessor or lessee in the acquisition of a recreational vehicle for the16
purpose of leasing the recreational vehicle to another person.17
§1270.30. Succession; right of first refusal; recreational vehicle dealer18
A.(1) The terms of the franchise notwithstanding, any recreational19
vehicle dealer may appoint by will, or other written instrument, a designated20
successor to succeed in the ownership interest of the recreational vehicle dealer21
in the dealership upon the death or incapacity of the recreational vehicle dealer.22
(2) Unless good cause exists for refusal to honor the succession on the23
part of the manufacturer or distributor, any designated successor of a deceased24
or incapacitated recreational vehicle dealer of a dealership may succeed to the25
ownership of the dealership under the existing franchise if:26
(a) The designated successor gives the manufacturer or distributor27
written notice of his or her intention to succeed to the ownership of the28
recreational vehicle dealer within sixty days of the recreational vehicle dealer's29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 87 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
death or incapacity.1
(b) The designated successor agrees to be bound by all the terms and2
conditions of the franchise.3
(3) The manufacturer or distributor may request, and the designated4
successor shall provide, promptly upon such request, personal and financial5
data reasonably necessary to determine whether the succession should be6
honored.7
(4) If a manufacturer or distributor believes that good cause exists for8
refusing to honor the succession of a deceased or incapacitated recreational9
vehicle dealer, the manufacturer or distributor may, not more than sixty days10
following receipt of notice of the designated successor's intent to succeed and11
receipt of such personal or financial data, serve upon the designated successor12
notice of its refusal to honor the succession and of its intent to discontinue the13
existing franchise with the dealer not earlier than six months from the date such14
notice is served.15
(5) The notice must state the specific grounds for the refusal to honor the16
succession.17
(6) If notice of refusal and discontinuance is not timely served upon the18
designated successor, the franchise shall continue in effect subject to19
termination only as otherwise permitted by this Chapter.20
(7) In determining whether good cause for the refusal to honor the21
succession exists, the manufacturer or distributor has the burden of proving22
that the designated successor is not of good moral character or does not23
otherwise meet the manufacturer's or distributor's reasonable standards as a24
franchisee.25
(8) If a manufacturer or distributor refuses to honor the succession to the26
ownership interest of a deceased or incapacitated owner for good cause, then27
and in such event:28
(a) The manufacturer or distributor shall allow the designated successor29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 88 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
a reasonable period of time which shall not be less than six months in which to1
consummate a sale of the dealership. Any such sale shall be subject to R.S.2
32:1270.21(1)(d).3
(b) Upon termination of the franchise pursuant to such refusal, the4
provisions of R.S. 32:1270.31 shall apply.5
B. In the event of a proposed sale or transfer of a recreational vehicle6
dealership and if the franchise agreement has a right of first refusal in favor of7
the manufacturer or distributor, then, notwithstanding the terms of the8
franchise agreement, the manufacturer or distributor shall be permitted to9
exercise a right of first refusal to acquire the recreational vehicle dealer's assets10
or ownership if all of the following requirements are met:11
(1) In order to exercise its right of first refusal, the manufacturer or12
distributor shall notify the recreational vehicle dealer in writing within sixty13
days of his receipt of the completed proposal for the proposed sale or transfer14
and all related agreements.15
(2) The applicability of R.S. 32:1270.21(1)(l) shall not be expanded or16
changed.17
(3) The exercise of the right of first refusal will result in the recreational18
vehicle dealer receiving the same or greater consideration as he has contracted19
to receive in connection with the proposed change of ownership or transfer.20
(4) The proposed sale or transfer of the dealership's assets does not21
involve the transfer or sale to a member or members of the family of one or22
more recreational vehicle dealers, or to a qualified manager with at least two23
years management experience at the dealership of one or more of these24
recreational vehicle dealers, or to a partnership or corporation controlled by25
such persons.26
(5)(a) The manufacturer or distributor agrees to pay the reasonable27
expenses, including attorney fees which do not exceed the usual, customary, and28
reasonable fees charged for similar work done for other clients, incurred by the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 89 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
proposed owner or transferee prior to the manufacturer's or distributor's1
exercise of its right of first refusal in negotiating and implementing the contract2
for the proposed sale or transfer of the dealership or dealership assets. Such3
expenses and attorney fees shall be paid to the proposed new owner or4
transferee at the time of closing of the sale or transfer for which the5
manufacturer or distributor exercised its right of first refusal.6
(b) No payment of such expenses and attorney fees shall be required if7
the new owner or transferee has not submitted or caused to be submitted an8
accounting of those expenses within thirty days of the recreational vehicle9
dealer's receipt of the manufacturer's or distributor's written request for such10
an accounting. A manufacturer or distributor may request such accounting11
before exercising his right of first refusal.12
(6) The recreational vehicle dealer shall not have any liability to any13
person as a result of a manufacturer's exercising its right of first refusal and the14
manufacturer or distributor shall assume the defense of the selling dealer for15
any claim by the proposed owner or transferee arising from the exercise of the16
right of first refusal.17
§1270.31. Requirements upon termination; penalty; indemnity; recreational18
vehicles19
A.(1) In the event the licensee ceases to engage in the business of being20
a recreational vehicle dealer, or ceases to sell a particular recreational vehicle,21
and after notice to the manufacturer, converter, distributor, or representative22
by certified mail or commercial delivery service with verification of receipt,23
within thirty days of the receipt of the notice by the manufacturer, converter,24
distributor, or representative, the manufacturer, converter, distributor, or25
representative shall repurchase:26
(a) All new recreational vehicles of the current and last prior model year27
delivered to the licensee and parts limited to those listed in the manufacturer's28
price book. The recreational vehicles and parts shall be repurchased at the cost29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 90 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to the licensee which shall include without limitation freight and advertising1
costs, less all allowances paid to the recreational vehicle dealer.2
(b) At fair market value, each undamaged sign owned by the recreational3
vehicle dealer which bears a trademark or trade name used or claimed by the4
manufacturer, distributor, or representative if the sign was purchased from or5
purchased at the request of the manufacturer, distributor, or representative.6
Fair market value shall be no less than cost of acquisition of the sign by the7
recreational vehicle dealer.8
(c) At fair market value, all special tools and automotive service9
equipment owned by the recreational vehicle dealer which were recommended10
in writing and designated as special tools and equipment and purchased from11
or purchased at the request of the manufacturer, converter, distributor, or12
representative, if the tools and equipment are in usable and good condition13
except for reasonable wear and tear. Fair market value shall be no less than cost14
of acquisition of special tools and automotive service equipment by the15
recreational vehicle dealer.16
(d) The manufacturer, converter, distributor, or representative shall pay17
to the recreational vehicle dealer the costs of transporting, handling, packing,18
and loading of recreational vehicles, or parts, signs, tools, and equipment19
subject to repurchase.20
(2) The manufacturer or converter shall make the required repurchase21
after the recreational vehicle dealer terminates his franchise and within sixty22
days of the submission to it, by certified mail, return receipt requested, or23
commercial delivery service with verification of receipt, of a final inventory of24
recreational vehicles and parts on hand.25
B. Failure to make such repurchase without just cause shall subject the26
manufacturer or converter to a penalty of one and one-half percent per month,27
or fraction thereof, of the inventory value or returnable recreational vehicles,28
and parts, signs, special tools, and automotive service equipment, payable to the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 91 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
dealer, as long as the repurchase is not made.1
C.(1) Upon the involuntary termination, nonrenewal, or cancellation of2
any franchise by the manufacturer or converter, except for termination,3
nonrenewal, or cancellation resulting from a felony conviction, notwithstanding4
the terms of any franchise, whether entered into before or after the enactment5
of this Chapter or any of its provisions, the new recreational vehicle dealer shall6
be allowed fair and reasonable compensation by the manufacturer or converter7
as agreed by the parties, or lacking agreement, as determined by the8
commission, for the dealership facilities if the facilities were required to be9
purchased or constructed as a precondition to obtaining the franchise or to its10
renewal; provided that if such facilities were leased and the lease were required11
as a precondition to obtaining the franchise or to its renewal, then the12
manufacturer shall be liable for one year's payment of the rent or the13
remainder of the term of the lease, whichever is less.14
(2) Payment under this Section shall entitle the manufacturers,15
converters, or distributors to possession and use of the facility.16
(3) As used in this Section, "manufacturer" shall include a17
manufacturer, a converter, a distributor, a factory branch, distributor branch,18
or other subsidiary thereof.19
(4) The obligation of the manufacturer or converter to purchase a20
dealership facility, pursuant to this Section, is equally applicable if an entity or21
person affiliated with the dealer is the owner or lessor of the facility.22
§1270.32. Recreational vehicle manufacturer termination of line-make;23
manufacturer bankruptcy; license24
Notwithstanding the terms of any franchise or other provision of law, if25
the termination, cancellation, or nonrenewal of a licensee's franchise is the26
result of the termination, elimination, or cessation of a line-make by the27
manufacturer, distributor, or factory branch, whether by bankruptcy or28
otherwise, the license issued by the commission may remain in effect at the29 SB NO. 360
SLS 12RS-691 ORIGINAL
Page 92 of 92
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
discretion of the commission pursuant to its rules.1
Section 2. R.S. 32:1257.1 and 1268.1 are hereby repealed.2
Section 3. The Louisiana State Law Institute is hereby directed to redesignate R.S.3
32:1251 through 1269 of Chapter 6 of Title 32 of the Louisiana Revised Statues of 1950, as4
Part I of Chapter 6 of Title 32 of the Louisiana Revised Statues of 1950. Part I shall be5
entitled "GENERAL PROVISIONS APPLICABLE TO MOTOR VEHICLES AND6
RECREATIONAL PRODUCTS".7
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Present law provides for the regulation of motor vehicles, specialty vehicles, and recreational
products under the governance of the Motor Vehicle Commission ("commission").
Present law provides for definitions governing the regulation of motor vehicles, recreational
products, and specialty vehicles.
Proposed law changes the definition of "boat package", "franchise", and "marine dealer".
Proposed law defines the following terms: "marine product lessor", "marine product lessor
agent", "marine product lessor manufacturer or distributor", "marine product salesman",
"new marine product", "selling agreement", "used marine product", "used marine product
dealer", "used marine product facility", "motorcycle or all-terrain vehicle dealer",
"motorcycle or all-terrain vehicle lessor", "motorcycle or all-terrain vehicle lessor agent",
"motorcycle or all-terrain vehicle lessor franchisor", "motorcycle or all-terrain vehicle
salesman", "new motorcycle or all-terrain vehicle", "used motorcycle or all-terrain vehicle",
"used motorcycle or all-terrain vehicle dealer", "used motorcyc le or all-terrain vehicle
facility", "new recreational vehicle", "recreational vehicle dealer", "recreational vehicle
lessor", "recreational vehicle lessor agent", "recreational vehicle lessor franchisor",
"recreational vehicle salesman", "used recreational vehicle", "used recreational vehicle
dealer","used recreational vehicle facility".
Proposed law replicates certain provisions of present law in new sections of law and limits
the application of such provisions to marine products, motorcycles, all-terrain vehicles, or
recreational vehicles.
Effective August 1, 2012.
(Amends R.S. 32:1252(4), (19) and (23), 1254(C)(12), (D)(4)(b) and (7), (E)(4), (9)(b), and
(11), 1258(A)(10) and (E), 1260(B)(1)-(3), 1261, 1261.1, and 1263; adds R.S. 32:1252(52)-
(78), 1262(C), 1267(C), 1268(D), and 1270-1270.32; repeals R.S. 32:1257.1 and 1268.1)