New York State Franchise Law for New Car Dealers

HIGHLIGHTS

• Establishes a right of dealers to protest a chargeback attempt. A protest automatically stays (halts) the chargeback until a final determination. • Requires franchisors’ chargebacks to be reasonable. • Prohibits a franchisor from denying or charging-back a warranty claim unless it proves (a) that the dealer did not make a good faith effort to comply with the reasonable written procedures or (b) that the dealer did not perform the work. • Prohibits a franchisor from denying or charging- back a sales, marketing or advertising incentive payment made to a dealer unless (a) the claim was false or materially fraudulent or (b) the dealer failed to reasonable substantiate the claim in accordance with the franchisor’s reasonable procedure. • Prohibits a franchisor from imposing any chargeback, debiting a dealer’s account or otherwise seeking to obtain any part of a chargeback during the thirty (30) day period in which the dealer has the opportunity to file a protest.

page 49

Private Actions – 469

• Conforms the Franchised Motor Vehicle Dealer Act to federal law. • Prohibits franchisors from requiring dealers to use binding arbitration to resolve disputes.

To read and search this document online, go to:

WWW.GNYADA.COM

13

Made with