HB412 Alabama 2014 Session

Summary

Primary Sponsor

Jack Williams

Republican

Session

Regular Session 2014

Title

Motor vehicles, to regulate manufacturer's and dealer's agreement, Sec. 8-20-2 am'd.

Summary

HB412 would require powersports vehicle manufacturers, distributors, and dealers to enter a formal manufacturer-and-dealer agreement and set rules for sales, termination, inventory repurchases, ownership transfers, and warrantor duties, with an exemption from the Motor Vehicle Franchise Act for powersports deals.

What This Bill Does

If enacted, the bill would bar selling powersports vehicles without a signed manufacturer-and-dealer agreement. It would establish requirements for the agreement, including a defined area of sales responsibility and protections against unfair practices. It would create procedures for terminating, canceling, nonrenewing, or altering the agreement, plus rules for repurchasing inventory and transferring dealership ownership. It would also outline warranty-related obligations for warrantors and broaden consumer trade protections, while exempting certain powersports dealer arrangements from the Motor Vehicle Franchise Act.

Who It Affects

• Manufacturers and distributors of powersports vehicles – must enter and maintain dealer agreements, designate exclusive sales areas, and comply with termination, transfer, and warranty rules
• Powersports dealers – must sign a manufacturer-and-dealer agreement to sell new powersports vehicles and gain protections for termination, inventory repurchase, and ownership transfers
• Warrantors (manufacturers/distributors providing warranties) – must define warranty obligations, compensation schedules, and allow warranty audits
• Consumers/public – may benefit from clearer dealer-manufacturer practices and improved protections against unfair trading and dealer conduct

Key Provisions

• After June 1, 2014, no sale of powersports vehicles without a signed manufacturer-and-dealer agreement
• Agreement must designate an area of sales responsibility and changes to that area require mutual consent; one-year restrictions on conflicting arrangements
• Unfair/deceptive trade practices defined and broadly prohibited, including coercion, price manipulation, and anti-competitive actions by manufacturers or distributors
• Dealer termination/cancellation/nonrenewal requires good faith, proper notice, and a showing of 'good cause' with defined standards
• Repurchase of inventory, supplies, equipment, and facilities with fair compensation if a dealer relationship ends
• Transfer of dealership ownership governed by procedures, including rights of first refusal and required notices
• Warrantor obligations: specify dealer duties, compensate for warranty work, reimburse parts at cost plus handling, and allow audits
• Amends 8-20-2 to exclude certain powersports dealer agreements from the Motor Vehicle Franchise Act for the portions related to powersports sales
• Applies to dealer agreements existing on, entered into, amended, or renewed after June 1, 2014; effective date June 1, 2014

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles