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HIGHLIGHTS
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Franchised Motor Vehicle Dealer Act
Article 17-a Vehicle and Traffic Law
Good Faith – 462(8a)
•
Defines “good faith” dealings as honesty in fact and
requires the use of reasonable commercial standards of
fair dealing, which is applied in later sections.
•
Incorporates and expands on the common law
definition of good faith.
Line-make – Section 462(13)
•
Clarifies that the term “line-make” includes a specific
“brand.
Relevant Market Area – 462(15)
•
Establishes a “relevant market area” (RMA) for the
purposes of defining a territory around the dealership.
A dealer may protest a unilateral addition or relocation
of a same line-make dealer by a franchisor within the
dealer’s RMA.
•
Defines a relevant market area as a 6-mile radius in
counties of 100,000 or more population or 10 mile
radius in counties with less than 100,000 in population.
Captive Finance Source – 462(16)
•
Defines “captive finance source” in order to match
up with later provisions restricting the ways in which
manufacturers can use their captive finance companies.
Termination – 462(17)
•
Defines “termination” of a franchise in a manner to
match up with provisions in later sections that provide
rights to dealers in connection with terminations by
franchisors.