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HIGHLIGHTS
9
Restrictions on Applications of Foreign
Laws – 463(2)(t)
•
Applies the Franchised Motor Vehicle Dealer Act
to disputes between New York dealers and their
franchisors.
Export Chargebacks – 463(2)(z)
•
Prohibits a franchisor from charging-back sales,
incentives, or related payments due to a vehicle that
is exported if the dealer can demonstrate it exercised
due diligence and the sale was made in good faith and
without knowledge of the purchaser’s intent to export
the vehicle, or the dealer reasonably relied upon the
franchisor’s approval to complete the sale. Registration
of the vehicle (in any state in the U.S.) and collection
of applicable sales tax will satisfy the due diligence
requirement.
•
Requires franchisors to provide notice to dealers prior
to assessing an export chargeback.
Right to Protest Add Point/Relocation
– 463(2)(cc)
•
Requires franchisors to provide notice (by certified
mail) to existing dealers of a proposed new point or
relocation in a dealer’s RMA.
•
Provides an existing dealer who receives such a notice
with the right to challenge the addition or relocation
of the proposed new dealership. Excludes relocation or
replacement of a dealer within its own existing RMA.
•
Places the burden on the franchisor to show good
cause for a new point or relocation of an existing point
within an existing dealer’s RMA.
•
Establishes criteria to be considered in determining
whether there is “good cause” for the addition or
relocation of a dealership into an existing dealer’s RMA.
The criteria include consideration of the interests of the
existing dealer, the franchisor and the public.
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