NYS Franchise Law 2013

highlights

Vehicle, Parts, and Accessories Sales Incentives Section 463(2)(g), (i)

page 16 • The franchisor may not sell a vehicle, part, and/or accessory at a lower actual price than that offered to any other dealer. • Any incentives, plans, or programs must be reasonably available to all dealers on a proportionally equal basis. Ownership Succession – Section 463(2)(m) page 18 • The franchisor may not deny a surviving spouse or heirs of a dealer the right to continue in the business, or otherwise interfere with the continuation of the business provided that the business is operated by competent management. page 24 • The franchisor shall not charge back sales incentives or related payments due to a vehicle that is exported if the dealer can demonstrate it exercised due diligence and the sale was made in good faith and without knowledge of the purchaser’s intent to export the vehicle, or the dealer reasonably relied upon the franchisor’s approval to complete the sale. Registration of the vehicle (in any state in the U.S.) and collection of applicable sales tax will satisfy the due diligence requirement. Export Chargebacks – Section 463(2)(z)

Relevant Market Area – Section 463(2)(cc)

page 25-27

• Add point/Relocation • Requires franchisors to provide notice (via certified mail) to existing dealers of a proposed new point or relocation in a dealer’s Relevant Market Area.

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