New York State Franchise Law for New Car Dealers

HIGHLIGHTS

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

page 29-30

• Prohibits franchisors from selling a vehicle, part, and/ or accessory at a lower actual price than that offered to any other dealer. • Requires franchisors to make incentives, plans, or programs reasonably available to all dealers on a proportionally equal basis.

Prohibition on Interference with Inventory Financing – 463(2)(j)

page 30

• Prohibits franchisors from interfering with a dealer’s choice of financing its vehicle inventory, including if a dealer chooses not to use the franchisor’s captive finance company.

page 31

Ownership Succession – 463(2)(m)

• Prohibits franchisors from denying a dealer’s surviving spouse or heirs 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.

Reimbursement for Inventory, Signage, Tools, Recent Facility Upgrades – 463(2)(o)

page 32

NEW

• Requires franchisors to repurchase inventory, supplies, special tools, signage and other items, purchased by a dealer from a franchisor or its approved sources, upon termination of a franchise. • Requires franchisors to reimburse dealers for facilities upgrades occurring within three (3) years of a termination without cause. • Requires franchisors to reimburse dealers for liability on Dealer Management System contracts in the event of a termination.

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