Bill
Bill > S129
MA S129
MA S129Further regulating business practices between motor vehicle dealers, manufacturers, and distributers
summary
Introduced
01/22/2013
01/22/2013
In Committee
01/22/2013
01/22/2013
Crossed Over
Passed
Dead
08/01/2014
08/01/2014
Introduced Session
188th General Court
Bill Summary
For legislation to further regulate business practices between motor vehicle dealers, manufacturers, and distributers. Consumer Protection and Professional Licensure.
AI Summary
This bill, aimed at further regulating business practices between motor vehicle dealers, manufacturers, and distributors, introduces several key provisions to protect dealers from unfair treatment. It prohibits manufacturers from selling vehicles to dealers at a lower price than offered to other dealers, with limited exceptions, and prevents them from unfairly withholding participation in sales programs or dictating dealer pricing to consumers. The bill also clarifies that manufacturers cannot unreasonably withhold participation in lead generation or warranty programs and must distribute leads equitably. It addresses facility upgrade requirements, stating that manufacturers cannot force dealers to make substantial changes or replacements unless the requirements are reasonable and financially justifiable, and that any incentives offered for such changes must be available to all dealers of the same vehicle line. Furthermore, the bill restricts manufacturers from coercing dealers to share customer information beyond what's necessary for sales, warranty, or safety obligations, and prohibits them from arbitrarily altering a dealer's performance measurement area without proper notice and a protest period. It also clarifies that a dealer's inability to meet unilaterally set performance standards does not constitute a breach of contract. The bill also prevents manufacturers from forcing dealers to buy goods or services from designated vendors without offering the option of comparable alternatives. It establishes that manufacturers must indemnify dealers for claims arising from negligent design or manufacturing unless the fault lies solely with the dealer, and prohibits manufacturers from dictating retail prices for parts or labor on customer repairs, or recovering costs through increased wholesale prices or surcharges. The bill also mandates reasonable time allowances for warranty work and clarifies that franchise agreements obtained more than 90 days before their intended use for termination are void, and that franchises will continue if manufacturers fail to properly advise dealers about non-renewal. Finally, it allows dealers to bring actions for damages and equitable relief, and guarantees that prevailing dealers will be awarded reasonable costs and attorney fees, with a broad interpretation of the law to prevent arbitrary and unfair treatment and allowing dealer associations to act on behalf of their members.
Committee Categories
Labor and Employment
Sponsors (7)
Marc Pacheco (D)*,
Stephen DiNatale (D),
Barry Finegold (D),
Mike Moore (D),
Dennis Rosa (D),
Mike Rush (D),
Theodore Speliotis (D),
Last Action
Accompanied a study order, see H4042 (on 04/17/2014)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://malegislature.gov/Bills/188/Senate/S129 |
| Bill | https://malegislature.gov/Bills/188/S129.pdf |
| BillText | https://malegislature.gov/Bills/PDF?billId=127440&generalCourtId=11 |
| Bill | https://malegislature.gov/Bills/188/S129 |
| Bill | https://malegislature.gov/Bills/BillHtml/127440?generalCourtId=11 |
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