New York State Franchise Law for New Car Dealers

HIGHLIGHTS

Restriction Against Unreasonable Denial of Relocation – 463(2)(dd)

page 42

• Requires franchisors to approve or deny a dealer relocation request within 60 days, or it is approved. • Prohibits a franchisor from unreasonably denying a dealer’s request to relocate his or her dealership location within his or her RMA.

Reimbursement for Loaner Vehicles – 463(2)(ee)

page 42

• Requires franchisors to reimburse a dealer the average cost in a dealer’s region for rental vehicles similar to the vehicle that is being serviced if the franchisor requires its dealers to provide a loaner.

Unilateral Modification of Franchise – 463(2)(ff)

page 42

• Limits a franchisor from substantially adversely altering the rights and obligations of a dealer under the franchise. • Requires franchisors to provide 90 days written notice of proposed modifications as well as the specific grounds for the modification. • Provides dealers with the right to protest a modification, and that upon such a protest any modification will be stayed. Arbitrary Sales or Performance Standards Prohibited – 463(2)(gg) • Prohibits franchisors from using any unreasonable, arbitrary or unfair sales or performance standards. • Requires franchisors to provide a clear and concise written description of their sales or performance standards. page 43

10