SB277 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Roger Bedford, Jr.
Democrat
Session: Regular Session 2011
Title: Recreational vehicles, franchise agreements by dealers and manufacturers and distributors, designated area of sales responsibility required, procedures for termination, cancellations, non-renewal, or alteration of agreements specified, repurchase of inventory, warranty service agreements, Motor Vehicle Franchise Act not to apply to any recreational vehicle manufacturer and dealer agreement, Sec. 8-20-2 am'd.
Summary: SB277 creates a dedicated franchise framework for recreational vehicles in Alabama, requiring signed dealer agreements, exclusive sales areas, and detailed rules on termination, repurchase, ownership transfer, warranties, mediation, and an exemption from the Motor Vehicle Franchise Act.
What This Bill Does
It would require a signed manufacturer and dealer agreement before selling new RVs in Alabama and would designate exclusive sales areas for dealers. It sets rules for how areas can be changed, how termination or nonrenewal must work (including cure periods and grounds), and what happens if a dealer is terminated without cause (repurchase of inventory and related items). It also establishes warranty, succession, mediation, and ownership-transfer provisions, and exempts RV agreements from the state's Motor Vehicle Franchise Act.

Who It Affects
RV dealers in Alabama (and their service facilities and staff), who must obtain signed manufacturer-dealer agreements, operate within exclusive sales areas, navigate termination or departure rules, and handle repurchase and succession provisions.
RV manufacturers and distributors (and warrantors), who must enter into and enforce these agreements, manage area assignments and changes, oversee termination with cure, handle repurchase obligations, define warranty terms, and operate under mediation and anti-coercion rules.

Key Provisions
Requires a signed manufacturer and dealer agreement before selling new recreational vehicles in Alabama.
Defines area of sales responsibility and generally preserves it for at least one year, with limited allowed revisions for market conditions.
Allows area changes if the dealer signs competing line agreements that jeopardize market penetration; requires 30-day notice to add a line-make and notification to competing dealers within 30 days.
Establishes termination/cancellation/nonrenewal rules with defined cause standards, notice, and cure periods; insolvency exceptions apply.
If terminated without cause, requires repurchase of certain inventory, accessories, and equipment at specified percentages and timeframes.
Sets ownership transfer and family succession rules, including grounds for objection and burden of proof on the objecting party.
Imposes warranty obligations on warrantors (compensation schedules, part reimbursement, audits) and allows dealer claims processing within set timeframes; prohibits misrepresentation of warranties.
Provides mutual indemnification for negligence, requires mediation before lawsuits, and allows injunctions for violations; prohibits coercion of dealers.
Amends 8-20-2 to exempt recreational vehicle manufacturer-dealer agreements from the Motor Vehicle Franchise Act.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles