WES MOORE, Governor Ch. 525
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Chapter 525
(House Bill 605)
AN ACT concerning
Motor Vehicles – Recreational Vehicle Dealer Agreements
FOR the purpose of requiring recreational vehicle dealers to hold a dealer agreement with
a recreational vehicle manufacturer to sell the manufacturer’s recreational vehicles
in the State; establishing licensing requirements for a recreational vehicle
manufacturer, distributor, or factory branch; altering the required terms and
conditions of a recreational dealer agreement, including terms and conditions related
to termination and nonrenewal of an agreement, transfer of dealer ownership,
warranty obligations, dealer inspection and rejection of recreational vehicles, and
prohibited acts, dispute resolution, and penalties; and generally relating to
recreational vehicle dealer agreements.
BY adding to
Article – Transportation
Section 15–201.1; and 15–1001 through 15–1015 to be under the new subtitle
“Subtitle 10. Recreational Vehicle Dealer Agreements”
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Transportation
15–201.1.
THIS SUBTITLE DOES NO T APPLY TO MANUFACTU RERS OR DISTRIBUTORS OF ,
OR FACTORY BRANCHES FOR, RECREATIONAL VEHICLE S.
SUBTITLE 10. RECREATIONAL VEHICLE DEALER AGREEMENTS .
15–1001.
(A) IN THIS SUBTITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS
INDICATED.
(B) “AREA OF SALES” MEANS THE GEOGRAPHIC AL AREA AGREED TO BY THE
DEALER AND THE MANUF ACTURER IN AN AGREEM ENT THAT GRANTS THE DEALER Ch. 525 2024 LAWS OF MARYLAND
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THE EXCLUSIVE RIGHT TO DISPLAY OR SELL T HE MANUFACTURER ’S NEW
RECREATIONAL VEHICLES OF A PARTICULAR LINE –MAKE.
(C) (1) “COERCE” MEANS TO COMPEL OR A TTEMPT TO COMPEL AN
ACTION OR INACTION BY THREAT OF HARM , BREACH OF CONTRACT , OR OTHER
ADVERSE ACTION OR CO NSEQUENCES .
(2) “COERCE” INCLUDES THREATENING TO TERMINATE , CANCEL, OR
NOT RENEW A DEALER A GREEMENT WITHOUT GOO D CAUSE, OR HOLD OR DELAY
PRODUCT DELIVERY AS AN INDUCEMENT TO AME ND THE DEALER AGREEM ENT.
(D) “DEALER” MEANS ANY PERSON LICENSED OR REQUIRED TO BE
LICENSED TO SELL REC REATIONAL VEHICLES .
(E) “DEALER AGREEMENT ” MEANS A WRITTEN AGRE EMENT OR CONTRACT
ENTERED INTO BETWEEN A DEALER AND A MANUF ACTURER OR DISTRIBUT OR:
(1) THAT STATES THE RIGHT S AND RESPONSIBILITI ES OF THE
PARTIES; AND
(2) UNDER WHICH THE DEALE R MAY SELL NEW RECRE ATIONAL
VEHICLES.
(F) “DISTRIBUTOR” MEANS ANY PERSON THA T PURCHASES NEW
RECREATIONAL VEHICLE S FOR RESALE TO DEAL ERS.
(G) “FACTORY BRANCH ” MEANS A BRANCH OFFIC E OF A MANUFACTURER
FROM WHICH THE MANUF ACTURER:
(1) SELLS OR PROMOTES SAL ES OF A PARTICULAR B RAND OR MA KE
OF NEW RECREATIONAL VEHICLES TO DEALERS IN THE STATE;
(2) DIRECTS AND SUPERVISE S THE MANUFACTURER ’S
REPRESENTATIVES IN T HE STATE; OR
(3) SUPERVISES OR CONTACT S DEALERS OR PROSPEC TIVE DEALERS
IN THE STATE.
(H) “FACTORY CAMPAIGN ” MEANS AN EFFORT O N THE PART OF A
WARRANTOR TO CONTACT RECREATIONAL VEHICLE OWNERS OR DEALERS TO
ADDRESS A PART OR EQ UIPMENT ISSUE.
WES MOORE, Governor Ch. 525
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(I) “FAMILY MEMBER ” MEANS A SPOUSE , CHILD, GRANDCHILD , PARENT,
SIBLING, NIECE, OR NEPHEW , OR A SPOUSE OF A CHI LD, GRANDCHILD , PARENT,
SIBLING, NIECE, OR NEPHEW.
(J) “LICENSE” MEANS A MANUFACTURER , DISTRIBUTOR, OR FACTORY
BRANCH LICENSE ISSUE D BY THE ADMINISTRATION UNDER THIS SUBTITLE.
(K) “LINE–MAKE” MEANS A SPECIFIC SER IES OF RECREATIONAL VEHICLES
THAT:
(1) IS TARGETED TO A PART ICULAR MARKET SEGMENT , AS
DETERMINED BY ITS DE COR, FEATURES, EQUIPMENT, SIZE, WEIGHT, AND PRICE
RANGE;
(2) HAS LENGTHS AND INTER IOR FLOOR PLANS THAT DISTINGUISH
THE RECREATIONAL VEH ICLES FROM OTHER SIM ILAR MODELS; AND
(3) BELONGS TO A SINGLE D ISTINCT CLASSIFICATION OF
RECREATIONAL VEHICLE PRODUCT TYPE THAT HA S A SUBSTANTIAL DEGR EE OF
COMMONALITY IN THE C ONSTRUCTION , CHASSIS, FRAME, AND BODY STYLE .
(L) “MANUFACTURER ” MEANS ANY PERSON ENG AGED IN THE
MANUFACTURING OF REC REATIONAL VEHICLES .
(M) “MODEL” MEANS A SERIES OF RE CREATIONAL VEHICLE P RODUCTS
IDENTIFIED BY A COMM ON SERIES TRADE NAME OR TRADEMARK .
(N) “PROPRIETARY PART ” MEANS ANY PART MANUF ACTURED BY OR FOR
THE MANUFACTURER OR SOLD EXCLUSIVELY BY THE MANUFACTURER .
(O) (1) “RECREATIONAL VEHICLE ” MEANS A VEHICLE THAT IS:
(I) EITHER SELF–PROPELLED OR TOWED B Y A TOW VEHICLE ;
AND
(II) DESIGNED TO PROVIDE T EMPORARY LIVING QUAR TERS
FOR RECREATIONAL , CAMPING, OR TRAVEL USE .
(2) “RECREATIONAL VEHICLE ” INCLUDES:
(I) A MOTOR HOME ;
(II) A TRAVEL TRAILER ; Ch. 525 2024 LAWS OF MARYLAND
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(III) A FIFTH–WHEEL TRAVEL TRAILER ;
(IV) A TRUCK CAMPER ; AND
(V) A FOLDING CAMPING TRAI LER.
(P) “TRANSIENT CUSTOMER ” MEANS A CUSTOMER WHO IS TEMPORARILY
TRAVELING THROUGH A DEALER’S AREA OF SALES.
(Q) (1) “WARRANTOR” MEANS ANY PERSON THAT GIVE S A WARRANTY IN
CONNECTION WITH NEW RECREATIONAL VEHICLE PARTS, ACCESSORIES, OR
COMPONENTS .
(2) “WARRANTOR” DOES NOT INCLUDE SER VICE CONTRACTS ,
INSURANCE, OR EXTENDED WARRANTI ES SOLD FOR SEPARATE CONSIDERATION BY
A DEALER OR PERSON NOT AFFILIATED WITH A MANUFACTURER OR DI STRIBUTOR.
15–1002.
(A) A MANUFACTURER MAY NOT TRANSFER ANY NEW REC REATIONAL
VEHICLE TO ANY DEALE R OR DISTRIBUTOR IN THE STATE UNLESS THE
MANUFACTURER IS LICE NSED BY THE ADMINISTRATION UNDER THIS SUBTITLE.
(B) A DISTRIBUTOR MAY NOT TRANSFER ANY NEW REC REATIONAL VEHICLE
TO ANY DEALER IN THE STATE UNLESS THE DIST RIBUTOR IS LICENSED BY THE
ADMINISTRATION UNDER THIS SUBTITLE.
(C) A PERSON MAY NOT CONDU CT THE BUSINESS OF A FACTORY BRANCH OF
A RECREATIONAL VEHIC LE MANUFACTURER UNLESS TH E PERSON IS LICENSED BY
THE ADMINISTRATION UNDER THIS SUBTITLE.
15–1003.
(A) IN ADDITION TO THE IN FORMATION REQUIRED U NDER SUBTITLE 1 OF
THIS TITLE, EACH APPLICATION FOR A LICENSE UNDER THIS SUBTITLE SHALL
INCLUDE:
(1) THE ADDRESS OF THE PRINCIPAL PLA CE OF BUSINESS OF TH E
APPLICANT;
(2) THE ADDRESS OF EACH P LACE OF BUSINESS FRO M WHICH THE
APPLICANT WILL MAKE SUBSTANTIAL CONTACTS WITH DEALERS IN THE STATE; AND WES MOORE, Governor Ch. 525
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(3) THE NATURE OF THE BUS INESS TO BE CONDUCTE D AT EACH
ADDRESS.
(B) EACH APPLICANT FOR A LICENSE SHALL SUBMIT AS PART OF THE
APPLICATION:
(1) A COPY OF EACH FORM FO R ANY NEW VEHICLE WA RRANTY
CURRENTLY PROVIDED O R OFFERED BY THE APP LICANT;
(2) A COPY OF EACH FRANCHI SE CONTRACT AND ANY OTHER
CONTRACT WITH DEALER S USED BY THE APPLICAN T, TOGETHER WITH A LIST OF
DEALERS IN THE STATE WHO HOLD A FRAN CHISE FROM THE APPLI CANT;
(3) A COPY OF THE VEHICLE PREPARATION AND DELI VERY
OBLIGATIONS OF THE D EALERS DESCRIBED IN ITEM (2) OF THIS SUBSECTION ; AND
(4) A STATEMENT O F THE COMPENSATION S TRUCTURE THE
APPLICANT AGREES TO PAY A DEALER FOR PAR TS SUPPLIED AND WORK DONE BY A
DEALER UNDER :
(I) THE PREPARATION AND D ELIVERY OBLIGATIONS OF THE
DEALER; OR
(II) ANY OUTSTANDING EXPRE SS OR IMPLIED NEW
RECREATIONAL VEHICLE WARRANTY.
15–1004.
(A) EACH LICENSEE SHALL P AY AN ANNUAL FEE TO THE ADMINISTRATION
FOR EACH LICENSE YEA R OR PART OF A LICEN SE YEAR FOR WHICH TH E LICENSE IS
ISSUED.
(B) THE ANNUAL LICENSE FE E FOR A MANUFACTURER OR A DISTRIBUTOR
SHALL BE ESTABLISHED BY THE ADMINISTRATION BASED ON THE COMBINED
NUMBER OF NEW RECREA TIONAL VEHICLES TRAN SFERRED BY THE MANUF ACTURER
OR DISTRIBUTOR TO DE ALERS IN THE STATE DURING THE PREC EDING LICENSE
YEAR.
(C) THE ANNUAL LICENSE FE E FOR A FACTORY BRAN CH SHALL BE
ESTABLISHED BY THE ADMINISTRATION .
15–1005. Ch. 525 2024 LAWS OF MARYLAND
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(A) AFTER THE ADMINISTRATION NOTIFI ES A MANUFACTURER OR
DISTRIBUTOR OF NEW R ECREATIONAL VEHICLES OF THE APPROVAL OF A N
APPLICATION FOR A LI CENSE AND BEFORE THE ADMINISTRATION ISSUES A
LICENSE, THE MANUFACTURER OR DISTRIBUTO R SHALL FILE WITH TH E
ADMINISTRATION A SURE TY BOND IN THE FORM AND WITH THE SURETY THAT THE
ADMINISTRATION REQUIR ES.
(B) (1) THE AMOUNT OF THE SUR ETY BOND SHALL BE BA SED ON THE
NUMBER OF NEW RECREA TIONAL VEHICLES TRAN SFERRED BY THE MANUF ACTURER
OR DISTRIBUTOR TO DEALERS IN THE STATE DURING THE PREC EDING LICENSE
YEAR, AS FOLLOWS:
(I) IF 1 TO 50 VEHICLES WERE TRANSF ERRED, A $25,000
SURETY BOND ;
(II) IF 51 TO 500 VEHICLES WERE TRANSF ERRED, A $50,000
SURETY BOND ;
(III) IF 501 TO 10,000 VEHICLES WERE TRANSFERRED , A
$100,000 SURETY BOND ; AND
(IV) IF MORE THAN 10,000 VEHICLES WERE TRANSF ERRED, A
$300,000 SURETY BOND .
(2) EACH SURETY BOND SHAL L CONTINUOUSLY MAINT AIN THE
AMOUNT SPECIFIED IN THIS SUBSECTION .
(3) A MANUFACTURER OR DIST RIBUTOR NEED NOT FILE MORE T HAN
ONE BOND REGARDLESS OF THE NUMBER OF MAK ES OF RECREATIONAL V EHICLES
MANUFACTURED OR DIST RIBUTED.
15–1006.
A LICENSE ISSUED UNDER THIS SUBTITLE AUTHOR IZES THE LICENSEE TO
CONDUCT THE BUSINESS OF A MANUFACTURER , DISTRIBUTOR, OR FACTORY
BRANCH DURING THE LI CENSE YEAR FOR WHICH IT IS ISSUED.
15–1007.
WES MOORE, Governor Ch. 525
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(A) IN THIS SECTION , “GOOD FAITH” MEANS HONESTY IN FAC T AND THE
OBSERVANCE OF REASON ABLE COMMERCIAL STAN DARDS OF FAIR DEALIN G IN THE
TRADE.
(B) A MANUFACTURER , DISTRIBUTOR, OR FACTORY BRANCH , WHETHER
DIRECTLY OR THROUGH AN AGENT, AN EMPLOYEE , OR A REPRESENTATIVE , MAY NOT
FAIL TO ACT IN GOOD FAITH:
(1) IN ACTING OR PURPORTI NG TO ACT UNDER THE TERMS,
PROVISIONS, OR CONDITIONS OF ANY FRANCHISE AGREEMENT ; OR
(2) IN ANY TRANSAC TION OR CONDUCT GOVE RNED BY THIS
SUBTITLE.
15–1008.
(A) A MANUFACTURER OR DIST RIBUTOR MAY NOT SELL A NEW
RECREATIONAL VEHICLE IN THE STATE TO OR THROUGH A DEALER WITHOUT
HAVING FIRST ENTERED INTO A WRITTEN DEALE R AGREEMENT THAT HAS BEEN
SIGNED BY BOTH PARTIES.
(B) (1) EXCEPT AS SPECIFIED I N PARAGRAPH (2) OF THIS SUBSECTION ,
THE MANUFACTURER SHA LL DESIGNATE THE DUR ATION OF THE DEALER
AGREEMENT AND THE AR EA OF SALES EXCLUSIV ELY ASSIGNED TO A DE ALER IN THE
DEALER AGREEMENT AND MAY NOT MAKE CHANGES TO THE TERMS SPECIFIED IN
THE AGREEMENT .
(2) THE TERMS SPECIFIED I N THE DEALER AGREEME NT MAY BE
ALTERED WITH WRITTEN MUTUAL CONSENT OF BO TH PARTIES.
(C) A DEALER MAY NOT SELL A NEW RECREATIONAL V EHICLE IN THE STATE
UNLESS:
(1) THE DEALER IS LICENSE D BY THE ADMINISTRATION UNDER
SUBTITLE 3 OF THIS TITLE;
(2) THE DEALER HAS ENTERE D INTO A DEALER AGRE EMENT; AND
(3) THE DEALER IS SELLING WITHIN THE AREA OF S ALES
DESIGNATED IN THE DE ALER AGREEMENT .
(D) (1) A MANUFACTURER OR DIST RIBUTOR SHALL DISTRI BUTE
RECREATIONAL VEHICLE S TO ITS DEALERS IN A FAIR AND EQUITABLE MANNER. Ch. 525 2024 LAWS OF MARYLAND
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(2) ON REQUEST , A MANUFACTURER OR DI STRIBUTOR SHALL
PROVIDE INFORMATION ON ITS MANNER OF DIS TRIBUTION TO DEALERS .
(E) A MANUFACTURER OR DIST RIBUTOR SHALL PROVID E ADEQUATE
REPAIR INSTRUCTIONS TO ITS LICENSED DEALERS TO FACILITATE THE DEALE RS
PERFORMING PROPER SE RVICE AND REPAIRS ON RECREATIONAL VEHICLE S.
15–1009.
(A) (1) A MANUFACTURER OR DIST RIBUTOR MAY TERMINAT E, CANCEL,
OR FAIL TO RENEW A M ODEL, LINE–MAKE, OR DEALER AGREEMENT WITH A DEALER
ONLY FOR GOOD CAUSE .
(2) (I) THE MANUFACTURER OR D ISTRIBUTOR HAS THE B URDEN
OF SHOWING GOOD CAUS E FOR THE TERMINATIO N OR CANCELLATION OF OR
FAILURE TO RENEW A M ODEL, LINE–MAKE, OR DEALER AGREEMENT WITH A
DEALER.
(II) THE DETERMINATION OF GOOD CAUSE SHALL BE BASED ON:
1. THE EXTENT OF THE DEA LER’S PENETRATION INTO
THE RELEVANT MARKET AREA FOR THE RELEVAN T MODEL OR LINE –MAKE;
2. THE NATURE AND EXTENT OF THE DEALER ’S
INVESTMENT IN THE DE ALER’S BUSINESS;
3. THE ADEQUACY OF T HE DEALER ’S SERVICE
FACILITIES, EQUIPMENT, PARTS, SUPPLIES, AND PERSONNEL ;
4. THE EFFECT OF THE PRO POSED ACTION ON THE
COMMUNITY ;
5. THE EXTENT AND QUALIT Y OF THE DEALER’S SERVICE
UNDER RECREATIONAL V EHICLE WARRANTIES ;
6. ANY FAILURE OF THE DEALER TO FOLLOW
AGREED–ON PROCEDURES AND ST ANDARDS RELATED TO T HE OVERALL OPERATION
OF THE DEALERSHIP CO NSISTENT WITH THE LA W AND THE DEALER AGR EEMENT;
AND
7. THE DEALER’S PERFORMANCE UNDER THE TERMS OF
THE DEALER AGREEMENT . WES MOORE, Governor Ch. 525
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(B) ON RENEWAL OF A D EALER AGREEMENT , A MANUFACTURER OR
DISTRIBUTOR MAY NOT REQUIRE ADDITIONAL I NVENTORY STOCKING
REQUIREMENTS OR INCR EASED SALES TARGETS IN EXCESS OF THE MAR KET
GROWTH IN THE DEALER ’S AREA OF SALES.
(C) (1) EXCEPT AS OTHERWISE P ROVIDED IN THIS SUBS ECTION, A
MANUFACTURER OR DIST RIBUTOR SHALL PROVID E A DEALER WITH WRIT TEN
NOTICE AT LEAST 120 DAYS BEFORE THE TERM INATION, CANCELLATION , OR
NONRENEWAL OF A MODE L, LINE–MAKE, OR DEALER AGREEMENT .
(2) THE NOTICE SHALL STAT E ALL REASONS FOR TH E PROPOSED
TERMINATION , CANCELLATION , OR NONRENEWAL .
(3) (I) WITHIN 30 DAYS FOLLOWING RECEI PT OF THE NOTICE , A
DEALER MAY PROVIDE W RITTEN NOTICE OF INT ENT TO RECTIFY ALL C LAIMED
DEFICIENCIES.
(II) IF THE DEFICIENCIES A RE RECTIFIED BY THE DEALER
WITHIN 120 DAYS FOLLOWING THE NOTICE OF INTENT TO RECTIFY, THE
MANUFACTURER ’S OR DISTRIBUTOR ’S NOTICE OF TERMINAT ION IS VOID.
(III) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , IF A
DEALER FAILS TO PROV IDE TIMELY WRITTEN N OTICE OF INTENT TO R ECTIFY OR
FAILS TO RECTIFY WIT HIN 120 DAYS AFTER NOTICE OF INTENT TO RECTIFY , THE
TERMINATION , CANCELLATION , OR NONRENEWAL OF THE DEALER AGREEMENT
SHALL TAKE EFFECT .
(4) THE 120–DAY NOTICE PERIOD SH ALL BE REDUCED TO 30 DAYS IF
THE TERMINATION , CANCELLATION , OR NONRENEWAL IS DUE TO:
(I) A DEALER OR ONE OF THE DEALER’S OWNERS BEING
CONVICTED OF , OR ENTERING A PLEA O F NOLO CONTENDERE TO , A FELONY;
(II) THE ABANDONMENT OR CL OSING OF THE BUSINES S
OPERATIONS OF THE DE ALER FOR 10 CONSECUTIVE BUSINESS DAYS, UNLESS THE
CLOSING IS DUE TO A CAUSE THAT IS OUT OF THE DEALER’S CONTROL;
(III) A SIGNIFICANT MISREPRE SENTATION BY A DEALE R
MATERIALLY AFFECTING THE BUSINESS RELATIO NSHIP; OR
(IV) A SUSPENSION OR REVOCA TION OF A DEALER ’S LICENSE,
OR FAILURE BY A DEAL ER TO RENEW A DEALER ’S LICENSE. Ch. 525 2024 LAWS OF MARYLAND
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(5) THE NOTICE PROVISIONS OF THIS SECTION DO N OT APPLY IF THE
REASON FOR TERMINATI ON, CANCELLATION , OR NONRENEWAL IS INS OLVENCY, THE
OCCURRENCE OF AN ASS IGNMENT FOR THE BENE FIT OF CREDITORS , OR
BANKRUPTCY .
(D) (1) A DEALER MAY TERMINATE , CANCEL, OR NOT RENEW A MODEL , A
LINE–MAKE, OR THE DEALER AGREEM ENT WITH A MANUFACTU RER OR
DISTRIBUTOR WITH OR WITHOUT GOOD CAUSE A T ANY TIME BY GIVING 30 DAYS’
WRITTEN NOTICE TO TH E MANUFACTURER OR DI STRIBUTOR.
(2) (I) IF THE TERMINATION , CANCELLATION , OR NONRE NEWAL
OF THE MODEL , LINE–MAKE, OR DEALER AGREEMENT IS FOR GOOD CAUSE , THE
DEALER HAS THE BURDE N OF SHOWING GOOD CA USE.
(II) A DETERMINATION OF GOO D CAUSE MAY BE BASED ON:
1. A MANUFACTURER OR DIST RIBUTOR BEING
CONVICTED OF , OR ENTERING A PLEA O F NOLO CONTENDERE TO , A FELONY;
2. THE BUSINESS OPERATIO NS HAVING BEEN
ABANDONED OR CLOSED FOR 10 CONSECUTIVE DAYS , UNLESS THE CLOSING I S DUE
TO A CAUSE THAT IS O UT OF THE CONTROL OF THE MANUFACTURER OR
DISTRIBUTOR;
3. A SIGNIFICANT MISREPRE SENTATION BY THE
MANUFACTURER OR DIST RIBUTOR THAT MATERIA LLY AFFECTS THE BUSI NESS
RELATIONSHIP ;
4. A DECLARATION BY THE M ANUFACTURER OR
DISTRIBUTOR OF INSOL VENCY, THE OCCURRENCE OF AN ASSIGNMENT FOR THE
BENEFIT OF CREDITORS , OR BANKRUPTCY ;
5. A MANUFACTURER ’S OR DISTRIBUTOR ’S MATERIAL
VIOLATION OF THE DEA LER AGREEMENT THAT I S NOT CURED WITHIN 120 DAYS
AFTER WRITTEN NOTICE BY THE DEALER;
6. A MANUFACTURER OR DIST RIBUTOR COERCING OR
ATTEMPTING TO COERCE A DEALER;
WES MOORE, Governor Ch. 525
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7. A MANUFACTURER OR DI STRIBUTOR VIOLATING AN
AREA OF SALES PROTEC TION OR ALLOWING OTH ER DEALERS TO VIOLAT E AN AREA
OF SALES PROTECTION ; OR
8. A MATERIAL VIOLATION O F THIS SECTION THAT IS
NOT CURED WITHIN 30 DAYS AFTER WRITTEN N OTICE OF THE VIOLATI ON BY THE
DEALER.
(E) IF THE DEALER AGREEMENT IS TERMINATED , CANCELED, OR NOT
RENEWED BY THE DEALE R FOR GOOD CAUSE , WITHIN 45 DAYS AFTER THE
TERMINATION , CANCELLATION , OR NONRENEWAL , THE MANUFACTURER OR
DISTRIBUTOR SHALL , AT REQUEST OF THE DE ALER, REPURCHASE :
(1) ALL NEW , UNALTERED, UNDAMAGED , AND UNTITLED
RECREATIONAL VEHICLE S THAT WERE ACQUIRED FROM THE MANUFACTURE R OR
DISTRIBUTOR WITHIN 18 MONTHS BEFORE THE TE RMINATION, CANCELLATION , OR
NONRENEWAL , AT 100% OF THE INVOICE COST , INCLUDING TRANSPORTA TION
COSTS, EXCEPT THAT IF A NY RECREATIONAL VEHI CLE IS DAMAGED , THE AMOUNT
DUE TO THE DEALER SH ALL BE REDUCED BY TH E COST TO REPAIR THE DAMAGE;
(2) ALL NEW, UNDAMAGED ACCESSORIE S AND PROPRIETARY PA RTS
WITH THE ORIGINAL IN VOICE SOLD TO THE DE ALER FOR RESALE WITH IN 12 MONTHS
BEFORE THE TERMINATION , CANCELLATION , OR NONRENEWAL OF THE DEALER
AGREEMENT , AT 105% OF THE DEALER ’S ORIGINAL PRICE PAI D; AND
(3) ANY PROPERLY FUNCTION ING DIAGNOSTIC EQUIP MENT,
SPECIALTY TOOLS , CURRENT SIGNAGE , OR OTHER EQUIPMENT A ND MACHINERY
THAT WAS PURCHAS ED WITHIN 5 YEARS BEFORE THE TER MINATION,
CANCELLATION , OR NONRENEWAL AND CA N NO LONGER BE USED IN THE NORMAL
COURSE OF BUSINESS , AT 100% OF THE DEALER ’S ORIGINAL PRICE PAI D, PLUS
FREIGHT, DESTINATION, DELIVERY, AND ANY APPLICABLE T AX.
(F) IF THE DEALER AGREEMENT IS TERMINA TED, CANCELED, OR NOT
RENEWED BY THE MANUF ACTURER OR DISTRIBUT OR WITHOUT GOOD CAUS E, THE
MANUFACTURER OR DIST RIBUTOR SHALL REPURC HASE DEALER INVENTOR Y AS
PROVIDED IN SUBSECTI ON (E) OF THIS SECTION.
(G) A DEALER IS NOT PROHIB ITED FROM SELLING THE REMAININ G
IN–STOCK INVENTORY OF A PARTICULAR MODEL OR LINE–MAKE AFTER A DEALER
AGREEMENT HAS BEEN T ERMINATED, CANCELED, OR NOT RENEWED BY TH E
MANUFACTURER OR DIST RIBUTOR.
Ch. 525 2024 LAWS OF MARYLAND
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(H) WHEN TAKING ON AN ADD ITIONAL LINE–MAKE OF A RECREATION AL
VEHICLE, A DEALER SHALL NOTIF Y IN WRITING ANY MAN UFACTURER OR
DISTRIBUTOR WITH WHO M THE DEALER HAS A D EALER AGREEMENT OF A SIMILAR
LINE–MAKE AT LEAST 30 DAYS BEFORE ENTERING INTO A DEALER AGREEM ENT FOR
THE ADDITIONAL LINE –MAKE.
15–1010.
(A) (1) IF A DEALER DESIRES T O MAKE A TRANSFER IN OWNERSHIP BY
SALE OF THE BUSINESS ASSETS, STOCK TRANSFER , OR ANY OTHER METHOD , THE
DEALER SHALL GIVE A MANUFACTURER OR DIST RIBUTOR THAT HAS ENT ERED INTO
A DEALER AGREEMENT W ITH THE DEALER WRITT EN NOTICE AT LEAST 10 BUSINESS
DAYS BEFORE THE TRAN SFER, INCLUDING ALL SUPPOR TING DOCUMENTATION A S
MAY BE REASONABLY RE QUIRED BY THE MANUFA CTURER OR DISTRIBUTO R TO
DETERMINE WHETHER AN OBJECTION TO THE TRANSFER MAY BE MADE .
(2) A MANUFACTURER OR DIST RIBUTOR MAY NOT OBJE CT TO THE
PROPOSED TRANSFER OF OWNERSHIP UNLESS THE PROSPECTIVE TRANSFER EE:
(I) HAS BEEN TERMINATED F OR CAUSE BY THE
MANUFACTURER OR DIST RIBUTOR;
(II) HAS BEEN CONVICTED OF A FELONY OR ANY CRIM E OF
MORAL TURPITUDE ;
(III) LACKS ANY DEALER LICE NSE REQUIRED BY LAW ;
(IV) LACKS AN ACTIVE LINE OF CREDIT SUFFICIENT TO
PURCHASE THE MANUFAC TURER’S OR DISTRIBUTOR ’S PRODUCT; OR
(V) HAS UNDERGONE BANKRUP TCY, INSOLVENCY, A GENERAL
ASSIGNMENT FOR THE B ENEFIT OF CREDITORS , OR THE APPOINTMENT O F A
RECEIVER, TRUSTEE, OR CONSERVATOR TO TA KE POSSESSION OF THE
TRANSFEREE ’S BUSINESS PROPERTY .
(B) (1) IF THE MANUFACTURER O R DISTRIBUTOR OBJECT S TO A
PROPOSED CHANGE OF O WNERSHIP, THE MANUFACTURER OR DISTRIBUTOR SHALL
GIVE WRITTEN NOTICE TO THE DEALER WITHIN 7 BUSINESS DAYS AFTER R ECEIPT
OF THE DEALER ’S NOTIFICATION AND C OMPLETE DOCUMENTATIO N.
(2) IF THE MANUFACTURER O R DISTRIBUTOR DOES N OT GIVE TIMELY
NOTICE OF THE OBJECT ION, THE TRANSFER SHALL B E DEEMED APPROVED .
WES MOORE, Governor Ch. 525
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(C) (1) A DEALER SHALL HAVE AN OPPORTUNITY TO DESIGNATE , IN
WRITING, A FAMILY MEMBER AS A SUCCESSOR TO THE DEA LER’S BUSINESS IN THE
EVENT OF DEATH , INCAPACITY, OR RETIREMENT OF THE DEALER.
(2) A MANUFACTURER OR DIST RIBUTOR MAY OBJECT T O THE
SUCCESSOR WITHIN 10 BUSINESS DAYS AFTER RECEIPT OF THE DEALER’S
SUCCESSION PLAN ONLY IF THE SUCCESSOR :
(I) WAS CONVICTED OF A FE LONY OR CRIME OF MOR AL
TURPITUDE;
(II) DECLARED BANKRUPTCY O R INSOLVENCY WITHIN THE
PREVIOUS 10 YEARS;
(III) LACKS AN ACTIVE LINE OF CREDIT SUFFICIENT TO
PURCHASE THE MANU FACTURER’S OR DISTRIBUTOR ’S PRODUCT;
(IV) LACKS ANY DEALER ’S LICENSE REQUIRED B Y LAW; OR
(V) WOULD CAUSE OR HAS CA USED A BREACH OF THE DEALER
AGREEMENT .
15–1011.
(A) (1) EACH WARRANTOR SHALL :
(I) SPECIFY IN WRITING EA CH DEALER’S OBLIGATIONS FOR
PREPARATION , DELIVERY, AND WARRANTY SERVICE FOR THE WARRANTOR ’S
PRODUCTS;
(II) COMPENSATE THE DEALER FOR WARRANTY SERVICE
PERFORMED BY THE DEA LER THAT IS COVERED BY THE WARRANTY ; AND
(III) PROVIDE THE DEALER A SCHEDULE OF COMPENSA TION TO
BE PAID AND THE REASONABL E TIME ALLOWANCE FOR THE PERFORMANCE OF A NY
SERVICE AND REPAIRS UNDER A WARRANTY .
(2) IF THE SCHEDULE OF CO MPENSATION DOES NOT INCLUDE A
PARTICULAR SERVICE O R REPAIR, A WARRANTOR SHALL RE IMBURSE THE DEALER
A REASONABLE AMOUNT FOR THE SERVICE OR REPAIR .
(B) (1) A WARRANTOR SHALL REIM BURSE THE DEALER FOR ANY
WARRANTY PART AT WHO LESALE COST PLUS A 30% HANDLING CHARGE . Ch. 525 2024 LAWS OF MARYLAND
– 14 –
(2) THE MAXIMUM HANDLING CHARGE UNDER THIS SU BSECTION IS
$300.
(3) A WARRANTOR SHALL REIM BURSE A DEALER THE C OST OF
FREIGHT TO RETURN A WARRANTY PART , AN ACCESSORY , OR A COMPONENT TO TH E
WARRANTOR , IF THE RETURN IS REQ UESTED BY THE WARRAN TOR.
(C) WARRANTY AUDITS OF DE ALER RECORDS MAY BE CONDUCTED BY THE
WARRANTOR ON A REASO NABLE BASIS.
(D) (1) A DEALER SHALL SUBM IT A WARRANTY CLAIM WITHIN 45 DAYS
AFTER COMPLETING THE WORK.
(2) A WARRANTOR MAY DISAPP ROVE WARRANTY CLAIMS ONLY IN
WRITING WITHIN 45 DAYS AFTER THE DATE THE WARRANTY CLAIM W AS SUBMITTED
BY THE DEALER IN THE MANNER PRESCRIBED BY THE WARRANTOR .
(3) CLAIMS NOT DISAPPROVE D IN WRITING WITHIN 45 DAYS SHALL
BE DEEMED TO BE APPR OVED AND SHALL BE PA ID BY THE WARRANTOR WITHIN 60
DAYS.
(E) A DEALER SHALL GIVE NO TICE TO A WARRANTOR AS SOON AS
REASONABLY POSSIBLE IF THE DEALER IS UNA BLE OR UNWILLING TO PERFORM
MATERIAL OR REPETITI VE WARRANTY REPAIRS .
(F) IT IS A VIOLATION OF THIS SECTION FOR ANY WARRANTOR TO :
(1) FAIL TO PERFORM ANY O F ITS WARRANTY OBLIG ATIONS WITH
RESPECT TO ITS WARRA NTED PRODUCTS ;
(2) FAIL TO INCLUDE WRITT EN NOTICES OF FACTOR Y CAMPAIGNS TO
RECREATIONAL VEHICLE OWNERS AND DEALERS F OR THE EXPECTED DATE BY
WHICH PARTS AND EQUI PMENT WILL BE AVAILA BLE TO DEALERS TO PE RFORM THE
CAMPAIGN WORK ;
(3) IF THE CARRIER IS DES IGNATED BY THE MANUF ACTURER,
DISTRIBUTOR, OR WARRANTOR , FAIL TO COMPENSA TE A DEALER FOR AUTH ORIZED
REPAIRS PERFORMED BY A DEALER FOR A PRODU CT DAMAGED IN TRANSI T TO THE
DEALER;
WES MOORE, Governor Ch. 525
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(4) FAIL TO COMPENSATE AN Y DEALER FOR AUTHORI ZED WARRANTY
SERVICE IN ACCORDANC E WITH THE TIME ALLO WANCES SET FORTH IN THE
SCHEDULE OF COMPENSA TION, IF PERFORMED IN A TI MELY MANNER ;
(5) INTENTIONALLY MISREPR ESENT TO PURCHASERS OF
RECREATIONAL VEHICLE S THAT A DEALER IS A WARRANTOR OR CO –WARRANTOR ;
OR
(6) REQUIRE A DEALER TO M AKE WARRANTIES TO CU STOMERS IN
ANY MANNER RELATED T O THE MANUFACTURING OF A RECREATIONAL VEHIC LE.
(G) IT IS A VIOLATION OF THIS SECTION FOR A D EALER TO:
(1) FAIL TO PERFORM PREDE LIVERY INSPECTION FU NCTIONS AS
SPECIFIED BY THE WAR RANTOR;
(2) FAIL TO PERFORM WARRA NTY SERVICE WORK AUT HORIZED BY
THE WARRANTOR IN A R EASONABL Y TIMELY MANNER ON A NY TRANSIENT
CUSTOMER’S RECREATIONAL VEHIC LE OF THE SAME LINE –MAKE;
(3) FAIL TO TRACK ACTUAL TIME EXPENDED TO PER FORM WARRANTY
WORK NOT GOVERNED BY TIME ALLOWANCE IN TH E SCHEDULE OF COMPEN SATION;
(4) CLAIM AN AGENCY RELAT IONSHIP WITH A WARRANTOR ; OR
(5) MISREPRESENT THE TERM S OF A WARRANTY .
(H) UNLESS SPECIFIED IN T HE TERMS OF A DEALER AGREEMENT , IT IS A
VIOLATION OF THIS SE CTION FOR:
(1) A WARRANTOR TO FAIL TO INDEMNIFY, DEFEND, AND HOLD
HARMLESS A DEALER AG AINST ANY LOSSES OR DAMAGES TO THE EXTENT THE
LOSSES OR DAMAGES AR E CAUSED BY THE NEGL IGENCE OR MISCONDUCT OF THE
WARRANTOR ; OR
(2) A DEALER TO FAIL TO IN DEMNIFY, DEFEND, AND HOLD HARMLESS
A WARRANTOR AGAINST ANY LOSSES OR DAMAGE S TO THE EXTENT THE LOSSES OR
DAMAGES ARE CAUSED BY TH E NEGLIGENCE OR MISC ONDUCT OF THE DEALER .
(I) INDEMNIFICATION UNDER THIS SUBSECTION SHAL L INCLUDE COURT
COSTS, REASONABLE ATTORNEY ’S FEES, AND EXPERT WITNESS F EES INCURRED BY
THE DEFENDING PARTY .
Ch. 525 2024 LAWS OF MARYLAND
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15–1012.
(A) WHEN A NEW RECREATIONAL VEHICLE IS DAMAGED BEFORE TR ANSIT
TO THE DEALER , OR IS DAMAGED IN TRA NSIT TO THE DEALER A ND THE
MANUFACTURER OR DIST RIBUTOR WAS RESPONSI BLE FOR TRANSIT , THE DEALER
SHALL:
(1) NOTIFY THE MANUFACTUR ER OR DISTRIBUTOR OF THE DAMAGE
WITHIN THE TIME FRAME SPECIFIED IN THE DEALER AGREEM ENT;
(2) REQUEST AUTHORIZATION TO REPLACE THE COMPO NENTS,
PARTS, OR ACCESSORIES DAMAG ED; AND
(3) REJECT THE RECREATION AL VEHICLE WITHIN 2 DAYS AFTER
PHYSICAL DELIVERY OF THE RECREATIONAL VEH ICLE.
(B) (1) IF A DEALER DETERMINES TH AT A RECREATIONAL VE HICLE AT
THE TIME OF DELIVERY HAS AN UNREASONABLE AMOUNT OF MILES ON T HE
ODOMETER , THE RECREATIONAL VEH ICLE MAY BE SUBJECT TO REJECTION BY THE
DEALER AND REVERSION OF THE RECREATIONAL VEHICLE TO THE MANUF ACTURER
OR DISTRIBUTOR.
(2) A DEALER MAY NOT DEEM LESS THAN THE DISTAN CE BETWEEN
THE DEALER AND THE M ANUFACTURER ’S FACTORY OR A DISTR IBUTOR’S POINT OF
DISTRIBUTION, AS APPROPRIATE , PLUS 100 MILES AS AN UNREASON ABLE AMOUNT
OF MILES.
15–1013.
(A) A MANUFACTURER , DISTRIBUTOR, OR FACTORY BRANCH , WHETHER
DIRECTLY OR THROUGH AN AGENT , AN EMPLOYEE , AN AFFILIATE , OR A
REPRESENTATIVE , MAY NOT COERCE OR AT TEMPT TO COERCE A DE ALER TO:
(1) PURCHASE A PRODUCT TH E DEALER DID NOT ORD ER;
(2) ENTER INTO AN AGREEME NT WITH THE MANUFACTURER OR
DISTRIBUTOR;
(3) TAKE ACTION THAT IS U NFAIR OR UNREASONABL E TO THE
DEALER; OR
(4) FORGO EXERCISING A RI GHT AUTHORIZED BY A DEALER
AGREEMENT OR ANY LAW GOVERNING THE BUSINE SS RELATIONSHIP . WES MOORE, Governor Ch. 525
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(B) A DEALER BEARS THE BUR DEN OF PROOF R EGARDING THE PROHIBI TED
ACTS DESCRIBED IN TH IS SECTION.
15–1014.
(A) NOTWITHSTANDING ANY A DMINISTRATIVE OR CRI MINAL SANCTIONS
IMPOSED BY THIS SUBT ITLE, IF A PERSON SUFFERS FINANCIAL INJURY OR OTHER
DAMAGE AS A RESULT O F A VIOLATION OF THI S SUBTITLE BY A NY OTHER PERSON ,
WHETHER OR NOT THAT OTHER PERSON HAS BEE N FOUND GUILTY OF A CRIMINAL
VIOLATION, THE INJURED PERSON M AY RECOVER DAMAGES A ND REASONABLE
ATTORNEY’S FEES IN ANY COURT OF COMPETENT JURISDI CTION.
(B) (1) BEFORE BRINGING A CIV IL ACTION UNDER TH IS SECTION, THE
PARTY BRINGING THE A CTION SHALL SERVE A WRITTEN DEMAND FOR M EDIATION
ON THE OFFENDING PAR TY.
(2) THE PARTIES TO MEDIAT ION SHALL PAY THEIR OWN COSTS FOR
ATTORNEY’S FEES AND DIVIDE TH E MEDIATOR COST EQUA LLY.
(3) THIS SUBSECTION DOES NOT APPLY TO AN ACTION F OR
INJUNCTIVE RELIEF .
(C) A DEALER, MANUFACTURER , DISTRIBUTOR, FACTORY BRANCH , OR
WARRANTOR MAY APPLY FOR A GRANT OF INJUN CTIVE RELIEF FROM A VIOLATION
OF THIS SUBTITLE OR A REFUSAL TO COMPLY WITH A REQUIREMENT O F THIS
SUBTITLE.
15–1015.
(A) THE ADMINISTRATION MAY SU SPEND OR REVOKE ANY DEALER,
MANUFACTURER , DISTRIBUTOR, OR FACTORY BRANCH LICENSE ON A FINDING THAT
A PARTY VIOLATED THI S SUBTITLE.
(B) THE ADMINISTRATION MAY IM POSE A FINE NOT EXCE EDING $1,000 FOR
EACH VIOLATION OF THIS SUBTITLE.
(C) A DEALER, MANUFACTURER , DISTRIBUTOR, FACTORY BRANCH , OR
WARRANTOR IS ENTITLE D TO A HEARING UNDER TITLE 12, SUBTITLE 2 OF THIS
ARTICLE TO CONTEST A N ACTION OR FINE IMP OSED UNDER THIS SECT ION.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2024. Ch. 525 2024 LAWS OF MARYLAND
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Approved by the Governor, May 9, 2024.