Oklahoma Senate Bill SB901

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Motor vehicle dealers; prohibiting denial or chargeback for failure to obtain title or registration. Effective date.

Impact

The legislation amends existing state laws by formally defining the conditions under which manufacturers can deny licensing or revoke dealer licenses while limiting their authority to impose penalties. By prohibiting chargebacks for failures due to consumer actions, this bill seeks to ensure a more equitable interaction between motor vehicle dealers and manufacturers, ultimately enhancing stability and fostering growth within the automotive industry in Oklahoma.

Summary

Senate Bill 901 focuses on motor vehicle dealers and their relationship with manufacturers, aiming to streamline regulations regarding licensing, registration, and dealer obligations. A key provision of the bill is the prohibition against charging back claims to dealers when a purchaser fails to obtain the title or registration of a vehicle. This change is intended to protect dealers from being penalized for issues that arise from consumer behavior rather than their own actions, thereby offering them greater financial security.

Contention

There are notable points of contention surrounding SB901, particularly regarding the balance of power between manufacturers and dealers. Some industry representatives express concerns that the bill may not sufficiently address existing disparities in dealer-manufacturer relationships, especially when it comes to exclusivity agreements and the allocation of new vehicle models. Stakeholders worry that despite the protections offered by the bill, manufacturers may still find ways to exert undue influence over dealers, potentially hampering fair competition.