Bill > H407

This bill further regulates business practices between motor vehicle dealers, manufacturers, and distributors. Key provisions include: 1. Prohibiting manufacturers from offering lower prices or better sales incentives to some dealers over others, unless those terms are available equally to all dealers in the state. 2. Restricting manufacturers from requiring dealers to make substantial facility changes or expansions, unless the dealer voluntarily agrees to a written program available to all same-line dealers on similar terms. 3. Preventing manufacturers from requiring dealers to exclusively sell extended service contracts, maintenance plans, or similar products offered by the manufacturer. 4. Requiring manufacturers to compensate dealers for unsold used vehicles subject to safety recalls if a remedy is not available, and prohibiting manufacturers from penalizing dealers for selling used recalled vehicles. 5. Allowing dealers to challenge manufacturer decisions to alter a dealer's geographic area of responsibility. 6. Prohibiting manufacturers from recovering the costs of dealer warranty parts and labor reimbursements through other charges. The bill aims to provide more protections for auto dealers in their relationships with manufacturers and distributors.

Labor and Employment

https://malegislature.gov/Bills/192/H407