Bill > S2704

This bill revises the Franchise Practices Act, which governs the relationship between motor vehicle manufacturers (franchisors) and dealerships (franchisees), to strengthen protections for dealers and ensure fair practices within the automotive industry. Key provisions include prohibiting franchisors from forcing franchisees to waive jury trials or agree to specific dispute resolution forums, expanding the definition of a "relevant market area" for new franchise applications to 14 miles in radius, and requiring franchisors to repurchase unused inventory and parts from franchisees upon termination of a franchise. The bill also clarifies that franchisors cannot unreasonably deny the transfer of a franchise, sets stricter timelines for franchisor responses to franchise transfer requests, and limits the period for auditing warranty or incentive claims to 12 months, except in cases of fraud. Furthermore, it establishes that franchisors bear the burden of proof to demonstrate that terminating a franchise is not a violation of the law and automatically stays terminations if a franchisee initiates legal action to prevent it. The bill also addresses issues like unreasonable facility or inventory demands, unfair chargebacks for vehicle exports or incentives, and ensures dealers are compensated for warranty work and parts at prevailing retail prices.