HB 191

Abstract

Motor vehicle dealers; sale of franchise. Changes the deadline for a vehicle manufacturer, factory branch, distributor, or distributor branch to reject the sale or transfer of a dealership from 30 days prior to the effective date of the sale or transfer to 60 days from the receipt of notice from the dealer of the proposed sale or transfer and lists requirements for such notice from the dealer. The bill provides that an objection to a sale or transfer based on an applicant's years of motor dealer management experience is a reasonable objection but removes the right to object based on other applicant qualifications. The bill further provides that a franchisor's consent to a relocation of a business cannot be unreasonably withheld. This bill is identical to SB 534.

Motor vehicle dealers; sale of franchise. Changesthe deadline for a vehicle manufacturer, factory branch, distributor,or distributor branch to reject the sale or transfer of a dealershipfrom 30 days prior to the effective date of the sale or transferto 60 days from the receipt of notice from the dealer of the proposedsale or transfer and lists requirements for such notice from thedealer. The bill provides that an objection to a sale or transferbased on an applicant's years of motor dealer management experienceis a reasonable objection but removes the right to object based onother applicant qualifications. The bill further provides that a franchisor's consent to a relocation of a business cannot be unreasonably withheld. Finally, the bill entitles dealers and applicants forsale or transfer to damages if a manufacturer, factory branch, distributor,or distributor branch willfully engages in prohibited conduct.