Document Type

Peach Sheet


The Act changes the definitions of dealer and franchise and adds a definition for relevant market area. It provides for the filing of petitions with the Department of Revenue. It provides for standing, damages, burden of proof, and venue in actions under this Article. The Act provides for the change in management or sale or transfer of a dealership. It further allows a franchisor to limit such a change, sale, or transfer. The Act makes it unlawful for a franchisor to require a dealer to acquire or transfer a line of automobiles if the dealer does not agree. It prohibits a franchisor from denying payment of certain dealer claims. The Act limits the time during which franchisors may audit dealers. It requires franchisors to send invoices to dealers under certain circumstances. The Act prohibits a franchisor from operating, owning, or controlling certain dealerships. The Act allows a franchisor to limit its dealers and franchisees from adding or acquiring a franchise for another make of automobile. It clarifies provisions regarding prohibited acts by manufacturers. It restricts a franchisor's ability to establish a new dealership or relocate a current dealership in the relevant market area of an existing dealership. This Act allows petitions to enjoin or prohibit such actions by a franchisor and establishes provisions for challenging the establishment or relocation of a dealership in an existing relevant market area. This Act sets forth criteria for determining when a new or current dealership may be established in an existing dealer's relevant market area. It places certain restrictions on the ownership, operation, or control of dealerships by manufacturers and franchisors. It prohibits a manufacturer from unfairly competing with dealers. It also provides for an automatic repeal of certain provisions.

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