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HIGHLIGHTS
11
Consent to Program Participation
– 463(2)(hh)
•
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)
•
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)
•
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)
•
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.
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