SB 577
Clarifying prohibited practices by manufacturer, factory branch, distributor, or distributor branch when providing new motor vehicle to dealer
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill clarifies prohibited practices that manufacturers, factory branches, distributors, and distributor branches may not engage in when providing new motor vehicles to dealers in West Virginia. Specifically, it prohibits requiring dealers to order vehicles with specific features, participate in advertising campaigns at their expense, change dealership capital structures without justification, or coerce dealers into making facility improvements. The bill also addresses restrictions on manufacturer control over dealer agreements and sales practices, including financing and reservation systems. It aims to protect dealers from unfair or coercive practices by automotive manufacturers and distributors.
Key provisions
- Prohibits requiring dealers to order vehicles with specific features or accessories not publicly advertised.
- Prevents manufacturers from requiring dealers to participate in advertising campaigns at their expense.
- Restricts manufacturers from unilaterally changing dealership capital structures or financial requirements.
- Outlaws coercive practices like threatening to terminate dealer agreements or limiting inventory.
- Limits manufacturer control over dealer facility improvements and image elements.
- Prohibits manufacturers from dictating terms in dealer agreements, including trial by jury waivers or arbitration.
- Prevents manufacturers from directly financing vehicle sales to retail buyers or lessees through dealers.
- Addresses restrictions on reservation systems and direct manufacturer-to-consumer sales.
Who is affected
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