Michigan Compiled Laws Act 118 Of 1981 Regulation Of Motor Vehicle Manufacturers, Distributors, Wholesalers, And Dealers (445.1561 - 445.1583)

AN ACT to regulate motor vehicle manufacturers, distributors, wholesalers, dealers, and their representatives; to regulate dealings between manufacturers and distributors or wholesalers and their dealers; to regulate dealings between manufacturers, distributors, wholesalers, dealers, and consumers; to prohibit unfair practices; to provide remedies and penalties; and to repeal certain acts and parts of acts.

History: 1981, Act 118, Imd. Eff. July 19, 1981

Section 445.1561 Meanings Of Words And Phrases.
For the purposes of this act, the words and phrases defined in sections 2 to 6 have the meanings ascribed to them in those...
Section 445.1562 Definitions; C, D.
(1) "Closed dealership" means a new motor vehicle dealer whose dealer agreement has been terminated, canceled, discontinued, or not renewed. (2) "Coerce" means to...
Section 445.1563 Definitions; D To F.
(1) "Distributor" means any person, including importer, that is located in or outside of this state and is engaged in the business of offering...
Section 445.1564 Definitions; G To M.
(1) "Good faith" means that term as defined in section 2103 of the uniform commercial code, 1962 PA 174, MCL 440.2103. (2) "Manufacturer" means...
Section 445.1565 Definitions; N To P.
(1) "New motor vehicle" means a motor vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold only...
Section 445.1566 Definitions; R To U.
(1) "Relevant market area" means 1 of the following: (a) In a county that has a population of more than 150,000, the area within...
Section 445.1567 Cancellation, Termination, Nonrenewal, Or Discontinuance Of Dealer Agreement; Conditions; Existence Of Good Cause.
(1) Notwithstanding any agreement, a manufacturer or distributor shall not cancel, terminate, fail to renew, or refuse to continue any dealer agreement with a...
Section 445.1568 Acts Not Constituting Good Cause For Termination, Cancellation, Nonrenewal, Or Discontinuance Of Dealer Agreement.
Notwithstanding any agreement, the following alone shall not constitute good cause for the termination, cancellation, nonrenewal, or discontinuance of a dealer agreement under section...
Section 445.1569 Burden Of Proof.
For each termination, cancellation, nonrenewal, or discontinuance, the manufacturer or distributor shall have the burden of proof for showing that it has acted in...
Section 445.1570 Notice Of Termination, Cancellation, Nonrenewal, Or Discontinuance Of Dealer Agreement.
Notwithstanding any agreement, prior to the termination, cancellation, nonrenewal, or discontinuance of any dealer agreement, the manufacturer or distributor shall furnish notice of the...
Section 445.1571 Compensation Of Dealer Generally.
(1) Subject to section 12, if a manufacturer terminates, cancels, does not renew, or discontinues a dealer agreement for any reason other than a...
Section 445.1572 Payment Of Compensation; Time; Determination Of Amount; Interest; Definitions.
(1) A manufacturer shall pay the compensation for new motor vehicle inventory and items of personal property required under section 11(1) within 60 days...
Section 445.1573 Requiring Dealer To Perform Certain Duties Prohibited.
A manufacturer shall not require any new motor vehicle dealer in this state to do any of the following: (a) Order or accept delivery...
Section 445.1574 Prohibited Conduct By Manufacturer.
(1) A manufacturer shall not do any of the following: (a) Adopt, change, establish, or implement a plan or system for the allocation and...
Section 445.1574a Property Use Agreement Not Required As Condition; Exception; Termination Of Agreement Between Manufacturer And New Motor Vehicle Dealer; Effect Of Inconsistent Provision; "Property Use Agreement" Defined.
(1) A manufacturer shall not require that a new motor vehicle dealer, a proposed new motor vehicle dealer, or any owner of an interest...
Section 445.1575 Succession To Dealership By Designated Family Member Of Deceased Or Incapacitated Dealer Or Executive Manager Of Dealership; Conditions; Refusal To Honor Existing Dealer Agreement For Good Cause; Personal And Financial Information; Notice Of Refusal To Approve Succession; Contents; Service; Designation Of Successor By Written Instrument.
(1) Any designated family member of a deceased or incapacitated new motor vehicle dealer or an executive manager of the dealership may succeed the...
Section 445.1576 Establishment Or Relocation Of Additional Dealer; Notice; Declaratory Judgment Action; Exception; Judicial Determination Of Good Cause.
(1) As used in this section, “relocate” and “relocation” shall not include the relocation of a new motor vehicle dealer within 2 miles of...
Section 445.1577 Dealer's Obligations For Preparation, Delivery, And Warranty Service; Written Specifications; Compensating Dealer For Required Warranty Service; Schedule Of Compensation; Prohibited Conduct; Claims For Labor And Parts; Payment; Approval Or Disapproval; Charge Back For False Or Fraudulent Claims; Records Of Warranty Repairs; Compensation And Claims For Promotion Events, Programs, Or Activities; Approval Or Disapproval Of Claims; Meeting; Audit.
(1) Each new motor vehicle manufacturer shall specify in writing to each of its new motor vehicle dealers licensed in this state the dealer's...
Section 445.1578 Liability For Damage To New Motor Vehicles; Rejection Of New Motor Vehicle By Dealer; Credit.
(1) Notwithstanding the terms, provisions, or conditions of any agreement, a new motor vehicle dealer is solely liable for damages to new motor vehicles...
Section 445.1579 Indemnification Of Dealer Against Certain Judgments; Payment Of Costs, Fees, And Judgments; Notice.
(1) Notwithstanding the terms, provisions, or conditions of any dealer agreement, a manufacturer or distributor shall indemnify and hold harmless its dealers against any...
Section 445.1580 Action For Damages Or Declaratory Judgment; Liability.
(1) If a manufacturer terminates, cancels, fails to renew, or discontinues a dealer agreement, without good cause as described in this act, the new...
Section 445.1581 Injunctive Relief.
Upon proper application to the circuit court, a manufacturer or distributor or new motor vehicle dealer may obtain appropriate injunctive relief against termination, cancellation,...
Section 445.1582 Act Inapplicable To Dealer Outside Michigan.
Notwithstanding the terms, provisions, or conditions of a dealer agreement, this act shall have no application to dealers located outside the state of Michigan....
Section 445.1582a Existing Agreements And Agreements Entered Into Or Renewed After Effective Date.
The 1998 amendments to this act that added this section apply to agreements in existence on the effective date of this section and to...
Section 445.1583 Repeal Of Mcl 445.521 To 445.534.
Act No. 331 of the Public Acts of 1978, being sections 445.521 to 445.534 of the Compiled Laws of 1970, is repealed. History: 1981,...

Last modified: October 10, 2016