Louisiana Senate Bill SB275

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12

Caption

Provides for the distribution and sale of marine products. (8/1/12)

Impact

The legislation impacts several aspects of state law surrounding marine dealerships, specifically clarifying the rights and obligations of marine product manufacturers, distributors, and dealers. It organizes existing regulations by introducing definitions and categories such as 'marine product lessor' and stipulating how dealerships can operate and relocate. This creates a more structured environment for marine dealerships, potentially improving consumer access to various marine products and enhancing consumer protection through specific provisions against unfair practices.

Summary

Senate Bill 275 (SB275) aims to regulate the distribution and sale of marine products in Louisiana by establishing comprehensive guidelines for marine dealerships, including the provisions for selling agreements and warranty agreements. The bill seeks to ensure fair business practices in the marine industry by allowing dealers to appoint successors in the event of death or incapacity and by providing manufacturers and distributors with clear guidelines on how they must handle new agreements and existing relationships with dealers.

Sentiment

The sentiment surrounding SB275 appears generally supportive among those in the marine industry who see it as a necessary update to existing regulations. Supporters argue that this bill will protect dealers from unfair practices by manufacturers while also offering consumers more options in terms of service and products. However, there may be concern among smaller dealers regarding compliance burdens and their ability to thrive amidst larger competitors, indicating potential contention regarding the bill's actual implementation.

Contention

Notable points of contention include the provisions around the appointment of successors for dealerships, where manufacturers may refuse to honor succession unless there is 'good cause,' which could lead to disputes. Additionally, manufacturers are required to repurchase inventory from dealers upon agreement termination, potentially leading to financial implications if manufacturers resist compliance. This aspect of the bill reflects a balancing act between protecting dealer interests and the operational flexibility of manufacturers.