New York State Franchise Law for New Car Dealers
HIGHLIGHTS
Consent to Program Participation – 463(2)(hh)
page 43
• Prohibits franchisors from requiring dealers to contribute money to a program or promotion without first receiving the dealer’s written consent.
Inventory AllocationWith Geographic Area – 463(2)(ii)
page 43
NEW
• Requires franchisors to give credit to dealers, for inventory allocation purposes, for sales of new motor vehicles to persons from areas outside a franchisees assigned sales territory.
Inventory Allocation Fairness and Transparency – 463(2)(jj)-(kk)
page 43-44
NEW
• Requires franchisors to make fair vehicle allocations of vehicle inventory and to disclose, upon the request of a dealer, its vehicle allocation methodology and the actual allocations to individual dealers.
Procedures Relating toWarranty Reimbursement and Sales Incentive Claims – 465(1)-(2)
page 44-46
NEW
• Clarifies that a franchisor must reimburse dealers for the performance of warranty work at the dealer’s retail rate charged for non-warranty work. • Establishes a specific method by which a dealer is to support the calculation of its retail rate on non- warranty work (the 100 most recent customer-paid R.O.s). • Requires that a dealer’s average retail rate calculation should go into effect 30 days after it is submitted. • Allows a dealer to request a change to the average retail rate each year. • Prohibits a franchisor from instituting burdensome procedures for reimbursement. • Excludes certain products from the retail rate calculation in order to avoid distortions in rate.
11
Made with FlippingBook