franchise law
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statement containing the basis or methodology upon
which the dealer was selected for audit or review.
5. A franchisor shall not deny or charge back a payment
for warranty work claimed by the dealer unless the
franchisor satisfies its burden of proof that the dealer
did not make a good faith effort to comply with the
reasonable written procedures of the franchisor or that the
dealer did not actually perform the work.
6. A franchisor shall not deny or charge back a sales
incentive payment made to a dealer unless the claim was
materially false or fraudulent or that the dealer failed to
reasonably substantiate the claim either in accordance
with the manufacturer’s reasonable procedures.
7. After all internal dispute resolution processes provided
through the franchisor have been resolved, the franchisor
shall give notice to the dealer of the final amount of a
proposed warranty or sales incentive charge back. If the
dealer institutes an action pursuant to this article within
thirty days of receipt of such notice, the proposed charge
back shall be stayed, without bond, during the pendency
of such action and until the final judgment has been
rendered in an adjudicatory proceeding or action as
provided in section four hundred sixty-nine of this article.
466. Unreasonable restrictions
1.It shall be unlawful for a franchisor directly or
indirectly to impose unreasonable restrictions on the
franchised motor vehicle dealer relative to transfer, sale,
right to renew or termination of a franchise, discipline,
noncompetition covenants, site-control (whether by
sublease, collateral pledge of lease or otherwise), right of
first refusal to purchase, option to purchase, compliance
with subjective standards and assertion of legal or
equitable rights with respect to its franchise or dealership.
2. It shall be deemed an unreasonable restriction upon
the sale or transfer of a dealership for a franchisor (i)
directly or indirectly to prevent or attempt to prevent a
franchised motor vehicle dealer from obtaining the fair
value of the franchise or the fair value of the dealership
business as a going concern; or (ii) to refuse to approve
the sale or transfer of a dealership due to the fact that the
franchised motor vehicle dealer owns, has an investment
in, participates in the management of or holds a franchise
