Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 466
Unreasonable restrictions
Vehicle & Traffic (VAT) CHAPTER 71, TITLE 4, ARTICLE 17-A
§ 466. Unreasonable restrictions. 1. It shall be unlawful for a
franchisor directly or indirectly to impose unreasonable restrictions on
the franchised motor vehicle dealer relative to transfer, sale, right to
renew or termination of a franchise, discipline, noncompetition
covenants, site-control (whether by sublease, collateral pledge of lease
or otherwise), right of first refusal to purchase, option to purchase,
compliance with subjective standards and assertion of legal or equitable
rights with respect to its franchise or dealership.

2. It shall be deemed an unreasonable restriction upon the sale or
transfer of a dealership for a franchisor (i) directly or indirectly to
prevent or attempt to prevent a franchised motor vehicle dealer from
obtaining the fair value of the franchise or the fair value of the
dealership business as a going concern; or (ii) to refuse to approve the
sale or transfer of a dealership due to the fact that the franchised
motor vehicle dealer owns, has an investment in, participates in the
management of or holds a franchise for the sale or service of another
line make of new motor vehicles, or that the franchised motor vehicle
dealer has established another franchise in the same dealership
facilities for the sale or service of another line make of new motor
vehicles prior to the effective date of this paragraph, or the other
franchise has been approved in writing by the franchisor.