Bill > S0628

This bill extends and updates regulations governing the relationships between motor vehicle manufacturers, distributors, factory branches, and dealers in Rhode Island. The legislation introduces several key provisions, including a new definition of "common entity" that describes complex ownership relationships between manufacturers and other business entities. The bill specifically prohibits motor vehicle manufacturers, distributors, factory branches, or common entities licensed after January 1, 2020, from directly selling vehicles to the public, with some limited exceptions such as sales to employees, retirees, non-profit organizations, and government entities. The bill also strengthens protections for dealers by expanding rules around franchise terminations, requiring manufacturers to provide more detailed notices and justifications before ending dealer relationships, and mandating fair compensation for dealers in cases of franchise termination. Additionally, the bill adds more detailed definitions around what constitutes "selling" a vehicle, including activities like accepting deposits, setting prices, and negotiating sales terms. These changes aim to create more transparency and fairness in the motor vehicle sales ecosystem, protecting the interests of both manufacturers and dealers while maintaining consumer protections.

Business and Industry

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