Provides for distribution and sale of marine products, motorcycles, all-terrain vehicles, and recreational vehicles. (8/1/12)
The introduction of SB 360 is significant as it formally delineates the dealer's rights and the responsibilities of manufacturers, which can help create a more organized marketplace for motor and marine products. It sets forth clear guidelines regarding warranty claims, payment obligations, and conditions under which dealerships can operate or be terminated. As a result, the bill can potentially minimize disputes between dealers and manufacturers, promoting a smoother business operation for stakeholders in this industry.
Senate Bill 360 aims to amend and reenact various statutes regarding the distribution and sale of marine products, motorcycles, all-terrain vehicles, and recreational vehicles in Louisiana. The bill introduces new definitions, establishes procedures for dealership operations, and outlines rights and responsibilities for both dealers and manufacturers. It includes provisions for the establishment of new dealerships, the termination of existing dealerships, and the succession of dealership ownership, ensuring that successors can continue operations under the existing franchise agreement in the event of the dealer's death or incapacity.
The sentiment around SB 360 appears to be generally positive among proponents who advocate for clearer guidelines and protections for both dealers and consumers. Supporters argue that it will enhance business fairness and accountability. Conversely, there may be concerns from some manufacturers regarding the additional regulatory burdens and potential limitations on operational flexibility, which marks a point of contention that needs careful consideration as the bill moves through the legislative process.
Notable points of contention may arise from the provisions relating to dealer succession and termination. Manufacturers may wish to retain greater control over franchisee agreements, whereas the bill seeks to protect dealer rights and ensure smooth transitions of ownership. Additionally, the requirements for repurchase of inventory and other compensation methods upon dealership closure could create friction between dealers and manufacturers, especially if there are disagreements over the valuation of inventory or the conditions of termination.