This bill would require all manufacturers and distributors that sell recreational vehicles in this state to enter into a manufacturer and dealer agreement with the dealer that will sell and service the vehicles of the manufacturer or distributor. This bill would provide that the agreement must specify an exclusive designated area of sales responsibility.
This bill would specify a procedure for termination, cancellation, nonrenewal, or alteration of the agreement.
This bill would provide for repurchase of inventory by a manufacturer or distributor from the dealer if the manufacturer or distributor terminates, cancels, or fails to renew a contract without cause.
This bill would require a dealer to give notice to the manufacturer or distributor of a change in ownership of the dealership.
This bill would provide requirements for warranty service on recreational vehicles and would require a warrantor to indemnify or hold harmless a dealer for all losses caused by the warrantor's negligence or willful misconduct and would require the dealer to do the same with respect to the warrantor.
This bill would prohibit a manufacturer or distributor from coercing or attempting to coerce a dealer into buying a product the dealer did not order, from requiring the dealer to submit to binding arbitration, or from entering into an agreement against his or her will.
This bill would prohibit a manufacturer or distributor from requiring a dealer to submit to binding arbitration as a condition of any manufacturer and dealer agreement. This bill would require mediation of disputes between dealers, manufacturers or distributors, or warrantors.
This bill would provide that the Motor Vehicle Franchise Act would not apply to any recreational vehicle manufacturer and dealer agreement.
Delivered to Governor at 2:06 p.m. on June 1, 2011
Assigned Act No. 2011-636.
Signature Requested
Enrolled
Passed Second House
Motion to Read a Third Time and Pass adopted Roll Call 997
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on Financial Services
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 440
Motion to Adopt adopted Roll Call 439
Banking and Insurance Amendment Offered
Third Reading Passed
Reported from Banking and Insurance as Favorable with 1 amendment
Read for the first time and referred to the Senate committee on Banking and Insurance
Source: Alabama Legislature