SB157 Alabama 2018 Session

Summary

Primary Sponsor

Clay Scofield

Republican

Session

Regular Session 2018

Title

Motor Vehicle Franchise Act, unfair and deceptive trade practices, coercion of dealer to change or modify premises when unreasonable, further provided for, Sec. 8-20-4 am'd.

Summary

SB 157 expands protections for Alabama motor vehicle dealers by making more manufacturer actions illegal, especially around relocation or alterations to dealership premises.

What This Bill Does

If enacted, the bill broadens the set of acts considered unfair and deceptive trade practices by manufacturers toward dealers, including unreasonable coercion to move or heavily modify premises. It bars pressuring dealers to buy or accept items, services, or features they did not order or that aren’t in the publicly advertised price, and it strengthens rules about exclusivity, franchise terms, and adding new dealers. It also adds formal safeguards such as required advance notice before certain franchise actions and a legal route for dealers to challenge unreasonable conduct in court, with the manufacturer bearing the burden of proof for reasonableness.

Who It Affects

• New motor vehicle dealers and their owners/managers in Alabama, who would gain stronger protections against unreasonable relocation/alterations and coercive or forced business arrangements.
• Manufacturers, factory branches, distributors, and wholesalers in Alabama, who would be restricted by new requirements on coercive practices, pricing, exclusive facilities, notice before adding dealers, and limits on certain franchise actions.

Key Provisions

• Adds and clarifies that coercing a dealer to move or make substantial, unreasonable changes to dealership premises is an unfair and deceptive trade practice.
• Prohibits coercion to purchase or accept items, features, or services not requested, or at prices not publicly advertised, except as required by law.
• Restricts exclusive facilities, unreasonable performance standards, and arbitrary changes to franchise terms, requiring reasonable business justification.
• Requires written notice (often 60 days) before appointing an additional dealer in the same market area and allows dealers to seek court relief to determine unreasonableness, with the manufacturer bearing the burden of proof.
• Strengthens transfer, succession, and financing protections for dealers, including conditions around right of first refusal, costs to proposed transferees, and limits on coercive influence over dealer finances or ownership changes.

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