New York State Franchise Law For New Car Dealers

FRANCHISE LAW

470. Construction of article The provisions of this article shall be in addition to and not in lieu of those contained in the uniform commercial code. 471. Notice requirement 1. A dealer shall not display for sale, exchange or sell any new motor vehicle, or any used motor vehicle, that was originally sold by a manufacturer for distribution outside the United States without prominently displaying a label on the vehicle stating that “This vehicle was not sold by the manufacturer for distribution within the United States. It may not have the same standard features, emissions equipment, safety equipment, optional equipment, specifications and warranty, or otherwise be identical to the other motor vehicles which are sold by the manufacturer for distribution in the United States”. 2. Any person who violates this section and any person who knowingly aids and abets any such violation of this section shall be liable to any person aggrieved to the extent of any additional margin obtained or obtainable on such purchase and resale. (a) Any franchised motor vehicle dealer who is or may be aggrieved by a violation of this article may request mediation with the franchisor. The request for mediation shall be served by certified mail, or in such manner as the franchisor and franchised motor vehicle dealer have agreed. If the franchisor agrees to mediation, such mediation shall proceed in accordance with the terms as agreed upon by the franchisor and franchised motor vehicle dealer; provided, however, that if the franchisor and franchised motor vehicle dealer have not agreed upon the terms of mediation (i) the franchisor and franchised motor vehicle dealer shall select a mediator within seven days of service by the franchised motor vehicle dealer of the request for mediation; (ii) the mediation shall be completed within twenty-one days of selection of the mediator, or within such period as the franchisor and the franchised motor vehicle dealer shall agree; and (iii) the cost of mediation shall be shared equally by the parties. If the matter is resolved by mediation, a written memorandum of the agreement shall be executed by the mediator, the franchisor, and the franchised motor vehicle dealer. 471-a. Adjudicatory proceedings 1. Request for an adjudicatory proceeding.

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