Unfair practices: Encouraging dealer to sell or lease vehicles through deceptive practices; refusal to deliver order; requiring payment of costs for promotion or advertising; requiring compliance with standards exceeding commonly accepted business practices; taking certain actions against dealer based solely on survey of dealer’s customers. No manufacturer, distributor, factory branch or representative thereof may:
1. Encourage, aid or abet a dealer to sell or lease vehicles through any false, deceptive or misleading sales or financing practice.
2. Refuse to deliver an order of a dealer within 60 days after the order is received in writing unless the inability to deliver the order is caused by shortage or curtailment of material, labor, production capacity, transportation or utility services, or to any labor or production difficulty, or to any cause beyond the reasonable control of the manufacturer or distributor.
3. Coerce, compel or otherwise require any dealer to pay over or to repay any amount of money or other consideration which is in substantiation of or repayment for any advertising, promotional activity or scheme, or method of implementing the sale or lease of vehicles.
4. Demand or require, directly or indirectly, a dealer to pay any amount of money which is projected or proposed for the advertisement, display or promotion of any vehicle which is being sold or leased pursuant to a franchise, unless the dealer has agreed thereto in writing.
5. Demand or require, directly or indirectly, a dealer to comply with standards which exceed commonly accepted business practices within the vehicle industry relating to sales, leases or service of vehicles.
6. Based solely upon the results of a survey of a dealer’s customers conducted by or on behalf of a manufacturer which is intended or otherwise purports to measure the performance of a dealer:
(a) Discriminate, directly or indirectly, against a dealer;
(b) Take any action to terminate a dealer’s franchise; or
(c) Refuse to consent to the designation of a successor, refuse to honor a right of succession set forth in a franchise or refuse to approve the transfer of a controlling interest in a dealership.
Ê This subsection does not prohibit a manufacturer, distributor, factory branch or representative thereof from conducting a contest or other award program to recognize the performance of a dealer based on reasonable criteria relating to sales, leases or service of vehicles.
Last modified: February 25, 2006