HOUSE BILL No. 6100

 

April 29, 2010, Introduced by Reps. Roy Schmidt, Gregory, Byrum, Kandrevas, Caul, Wayne Schmidt, Young, Mayes, Melton, Hildenbrand, Walsh, Leland, Durhal, Lemmons, Slezak, McDowell, Terry Brown, Spade, LeBlanc, Johnson, Huckleberry, Haase, Corriveau, Scripps, Robert Jones, Segal, Dean, Switalski, Haugh, Gonzales, Womack, Meadows, Griffin, Miller, Rocca, Byrnes, Neumann, Daley, Kennedy, Donigan, Stanley, Bledsoe, Liss, Ebli, Nerat, Sheltrown, Espinoza, Lahti, Constan, Slavens, Roberts, Warren, Polidori, Lindberg, Bauer, Stamas, Moore, Crawford, Horn, Pavlov, Green, Opsommer, Denby, Tyler, Bolger, Agema, Meekhof, Haines, Pearce, Haveman, Paul Scott, Lund, Booher, Rogers, Kowall, Ball, Hansen, Schuitmaker, Knollenberg, Proos, Valentine and Smith and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1981 PA 118, entitled

 

"An act to regulate motor vehicle manufacturers, distributors,

wholesalers, dealers, and their representatives; to regulate

dealings between manufacturers and distributors or wholesalers and

their dealers; to regulate dealings between manufacturers,

distributors, wholesalers, dealers, and consumers; to prohibit

unfair practices; to provide remedies and penalties; and to repeal

certain acts and parts of acts,"

 

by amending sections 14, 15, 17, and 20 (MCL 445.1574, 445.1575,

 

445.1577, and 445.1580), section 14 as amended by 2000 PA 239 and

 

section 17 as amended by 1983 PA 188, and by adding sections 14a

 

and 14b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14. (1) A manufacturer , importer, or distributor shall

 

not do any of the following:


 

     (a) Adopt, change, establish, or implement a plan or system

 

for the allocation and distribution of new motor vehicles to new

 

motor vehicle dealers that is arbitrary or capricious or based on

 

unreasonable sales and service standards, or modify an existing

 

plan or system that causes the plan or system to be arbitrary or

 

capricious or based on unreasonable sales and service standards.

 

     (b) Fail If requested in writing by a new motor vehicle

 

dealer, fail or refuse to advise or disclose to any new motor

 

vehicle dealer having a dealer agreement, upon written request

 

therefore, the dealer the basis upon on which new motor vehicles of

 

the same line make are allocated or distributed to new motor

 

vehicle dealers in the state and the basis upon on which the

 

current allocation or distribution is being made or will be made to

 

that new motor vehicle dealer.

 

     (c) Refuse to deliver to a new motor vehicle dealer in

 

reasonable quantities and within a reasonable time after receipt of

 

a the dealer's order, to any new motor vehicle dealer having a

 

dealer agreement for the retail sale of new motor vehicles sold or

 

distributed by a manufacturer or distributor any such new motor

 

vehicles as that are covered by such the dealer agreement and

 

specifically publicly advertised in the state by the manufacturer

 

or distributor to be as available for immediate delivery. However,

 

the failure to deliver any motor vehicle shall not be is not

 

considered a violation of this act if the failure is due to an act

 

of God, a work stoppage or delay due to a strike or labor

 

difficulty, a shortage of materials, a lack of manufacturing

 

capacity, a freight embargo, or other cause over which the


 

manufacturer or distributor has no control. If the a manufacturer

 

or distributor requires a new motor vehicle dealer to purchase

 

essential service tools with a purchase price in the aggregate of

 

more than $7,500.00 in order to receive a specific model of

 

vehicle, the manufacturer or distributor shall upon on written

 

request provide the dealer with a good faith estimate in writing of

 

the number of vehicles of that specific model the dealer will be

 

allocated during that in the model year in which the dealer is

 

required to purchase the tool. is required to be purchased.

 

     (d) Increase prices of the price of a new motor vehicles which

 

vehicle that the new motor vehicle dealer had ordered, and then

 

eventually delivered to, the same retail consumer for whom the

 

vehicle was ordered, if the order was made prior to before the

 

dealer's receipt of the a written official price increase

 

notification. A sales contract signed by a private retail consumer

 

and binding on the dealer shall constitute constitutes evidence of

 

each a vehicle order. In the event of manufacturer or distributor

 

price reductions or cash rebates, the dealer shall pass on the

 

amount of any reduction or rebate received by a the dealer shall be

 

passed on to the private retail consumer. by the dealer. Any price

 

reduction in excess of $5.00 shall apply to all vehicles in the

 

dealer's inventory which that were subject to the price reduction.

 

A price difference applicable to new model or series motor vehicles

 

at the time of the introduction of the new models or the series

 

shall not be is not considered a price increase or price decrease.

 

This subdivision shall does not apply to price changes caused by

 

any of the following:


 

     (i) The addition to a motor vehicle of required or optional

 

equipment pursuant to state or federal law.

 

     (ii) In the case of foreign made vehicles or components,

 

revaluation of the United States dollar.

 

     (iii) Any increase in transportation charges due to an increase

 

in rates charged by a common carrier and transporters or

 

transporter.

 

     (e) Offer any refunds or other types of inducements of the

 

following to any dealer for the purchase of new motor vehicles of a

 

certain new motor vehicle dealer of a specific line make to be sold

 

to this state or any political subdivision of this state without

 

making the same offer available upon request to all other new motor

 

vehicle dealers of the same line make: .

 

     (i) Any specific model or series of new motor vehicles

 

manufactured for that line make.

 

     (ii) Any incentives, rebates, bonuses, promotional items, or

 

other similar benefits payable to the new motor vehicle dealer for

 

selling new motor vehicles or purchasing new motor vehicles from

 

the manufacturer.

 

     (iii) Any consumer rebates, vehicle price reductions, or

 

interest rate reductions or other changes to finance terms that

 

benefit the consumer.

 

     (iv) Any program that provides marketing and sales assistance

 

to new motor vehicle dealers, including, but not limited to,

 

internet listings, sales leads, warranty policy adjustments,

 

marketing programs, and dealer recognition programs.

 

     (f) Release to an outside party, except under subpoena or in


 

an administrative or judicial proceeding to which the new motor

 

vehicle dealer or the manufacturer or distributor are parties, any

 

business, financial, or personal information which that has been

 

provided by the dealer to the manufacturer, or distributor, unless

 

the new motor vehicle dealer gives his or her written consent.

 

     (g) Deny a new motor vehicle dealer the right to associate

 

with another new motor vehicle dealer for any lawful purpose.

 

     (h) Directly or indirectly own, operate, or control a new

 

motor vehicle dealer, including, but not limited to, a new motor

 

vehicle dealer engaged primarily in performing warranty repair

 

services on motor vehicles pursuant to the manufacturer's warranty,

 

or a used motor vehicle dealer. This subdivision does not apply to

 

any of the following:

 

     (i) The ownership, operation, or control by a manufacturer or

 

distributor of a new motor vehicle dealer for a period of not more

 

than 24 months during the transition from 1 owner or operator to

 

another. The circuit court may extend the 24-month time period for

 

an additional 12 months upon receipt of an application from a

 

manufacturer or distributor and a showing of good cause.

 

     (ii) The ownership, operation, or control of a new motor

 

vehicle dealer or a used motor vehicle dealer by a manufacturer or

 

distributor while it is being sold under a bona fide contract or

 

purchase option to the operator of the new motor vehicle dealer or

 

the used motor vehicle dealer.

 

     (iii) The direct or indirect ownership by a manufacturer of an

 

entity that owns, operates, or controls a new motor vehicle dealer

 

of the same line make franchised by the manufacturer, if all of the


 

following conditions are met:

 

     (A) As of May 1, 2000, the manufacturer for a period of not

 

less than 12 months has continuously owned, directly or indirectly,

 

1 or more new motor vehicle dealers in this state.

 

     (B) All of the new motor vehicle dealers selling the

 

manufacturer's motor vehicles in this state trade exclusively in

 

the manufacturer's line make.

 

     (C) As of January 1, 2000, not fewer than 1/2 of the new motor

 

vehicle dealers of the line make within this state own and operate

 

2 or more new motor vehicle dealer facilities in the geographic

 

territory or area covered by the franchise agreement with the

 

manufacturer.

 

     (D) For a manufacturer or any entity in which the manufacturer

 

has more than a 45% ownership interest, the manufacturer or entity

 

has not acquired, operated, or controlled a new motor vehicle

 

dealer that the manufacturer did not directly or indirectly own as

 

of May 1, 2000.

 

     (i) Sell any new motor vehicle directly to a retail customer

 

other than through its franchised dealers, unless the retail

 

customer is a nonprofit organization or a federal, state, or local

 

government or agency. This subdivision does not prohibit a

 

manufacturer from providing information to a consumer for the

 

purpose of marketing or facilitating the sale of new motor vehicles

 

or from establishing a program to sell or offer to sell new motor

 

vehicles through the manufacturer's new motor vehicle dealers.

 

     (j) Prevent or attempt to prevent by contract or otherwise any

 

new motor vehicle dealer from changing the executive management of


 

a new motor vehicle dealer unless the manufacturer, or distributor,

 

having the burden of proof, can show that the change of executive

 

management will result in executive management by a person or

 

persons who are not of good moral character or who do not meet

 

reasonable, preexisting, and equitably applied standards of the

 

manufacturer. or distributor. If a manufacturer or distributor

 

rejects a proposed change in the executive management, the

 

manufacturer or distributor shall give written notice of its

 

reasons to the dealer within 60 days after receiving written notice

 

from the dealer of the proposed change and all related information

 

reasonably requested by the manufacturer, or distributor, or the

 

change in executive management shall be is considered approved.

 

     (k) Unreasonably withhold Withhold consent to the sale,

 

transfer, or exchange of the a new motor vehicle dealership to a

 

qualified buyer that is capable of being licensed as a new motor

 

vehicle dealer in this state without good cause.

 

     (l) Fail to respond in writing to a request for consent to a

 

sale, transfer, or exchange of a new motor vehicle dealership

 

within 60 days after receipt of receiving a written application

 

from the new motor vehicle dealer on the forms generally utilized

 

by the manufacturer or distributor for such that purpose and

 

containing the information required therein in that application.

 

Failure to respond to the a request for consent within the 60 days

 

shall be 60-day period is considered consent to the sale, transfer,

 

or exchange.

 

     (m) Unfairly prevent a new motor vehicle dealer that sells,

 

transfers, or exchanges a new motor vehicle dealership from


 

receiving reasonable compensation for the value of the new motor

 

vehicle dealership.

 

     (n) Offer any incentive, rebate, bonus, or similar benefit

 

that is based on the sale of new motor vehicles if the amount of

 

that benefit per vehicle sold increases if the dealer meets a

 

performance standard established by the manufacturer.

 

     (o) Unless the manufacturer enters into a written agreement

 

with the new motor vehicle dealer that clearly states the amount of

 

the incentive payments and the period of time during which the

 

incentive payments are paid, offer incentive payments to a new

 

motor vehicle dealer in consideration for a new motor vehicle

 

dealer's promise to do any of the following:

 

     (i) Make material alterations to any facilities at the dealer's

 

place of business.

 

     (ii) Construct new facilities for the conduct of the business

 

of the dealership.

 

     (p) Require unreasonable improvements to a facility as a

 

condition to entering into or renewing a dealer agreement.

 

     (q) Authorize a motor vehicle service and repair facility to

 

perform motor vehicle service and warranty work.

 

     (r) Own a motor vehicle service and repair facility.

 

     (s) Engage in any conduct that is capricious, is not in good

 

faith, or is unconscionable, and that causes damage to a new motor

 

vehicle dealer.

 

     (t) Impose unreasonable standards of performance on a new

 

motor vehicle dealer or require, attempt to require, coerce, or

 

attempt to coerce a new motor vehicle dealer to adhere to


 

performance standards that are not applied uniformly to other

 

similarly situated new motor vehicle dealers.

 

     (u) Use or consider the performance of a new motor vehicle

 

dealer in selling the manufacturer's vehicles or the new motor

 

vehicle dealer's ability to satisfy any minimum sales or market

 

share quota or responsibility relating to the sale of the new motor

 

vehicles in determining any of the following:

 

     (i) The new motor vehicle dealer's eligibility to purchase

 

program, certified, or other used motor vehicles from the

 

manufacturer.

 

     (ii) The volume, type, or model of program, certified, or other

 

used motor vehicles that a new motor vehicle dealer is eligible to

 

purchase from the manufacturer.

 

     (iii) The price of any program, certified, or other used motor

 

vehicle that the new motor vehicle dealer purchases from the

 

manufacturer.

 

     (iv) The availability or amount of any discount, credit,

 

rebate, or sales incentive that the new motor vehicle dealer is

 

eligible to receive from the manufacturer in connection with any

 

program, certified, or other used motor vehicle offered for sale by

 

the manufacturer.

 

     (v) Require that a new motor vehicle dealer allow a person,

 

other than a person that administers the manufacturer's warranty

 

and notice obligations, to use customer information obtained by the

 

new motor vehicle dealer. Unless the customer information is

 

obtained from the manufacturer, customer information obtained by a

 

new motor vehicle dealer is owned by the new motor vehicle dealer.


 

     (v) Establish a performance standard or program for measuring

 

new motor vehicle dealer performance that may have a material

 

impact on a new motor vehicle dealer that is not fair, reasonable,

 

and equitable. Within 5 days after receiving a request from the new

 

motor vehicle dealer, a manufacturer shall provide a new motor

 

vehicle dealer with a written description of how a performance

 

standard or program is designed and all relevant information used

 

in the application of the performance standard or program to that

 

new motor vehicle dealer.

 

     (w) If a new motor vehicle dealer sold or leased a new motor

 

vehicle to a customer that exported the motor vehicle to a foreign

 

country or resold the motor vehicle, refuse to allocate, sell, or

 

deliver new motor vehicles to the dealer; charge back or withhold

 

payments or other things of value for which the dealer is otherwise

 

eligible under a sales promotion, program, or contest; prevent a

 

new motor vehicle dealer from participating in any sales promotion,

 

program, or contest; or take or threaten to take any other adverse

 

action against a new motor vehicle dealer, including, but not

 

limited to, reducing vehicle allocations or terminating or

 

threatening to terminate a dealer agreement, unless the

 

manufacturer proves that the new motor vehicle dealer had actual

 

knowledge that the customer intended to export or resell the motor

 

vehicle. In an action by a new motor vehicle dealer for a violation

 

of this subdivision, there is a rebuttable presumption that a new

 

motor vehicle dealer does not have actual knowledge of its

 

customer's intent to export or resell a motor vehicle, and the

 

manufacturer bears the burden of rebutting that presumption.


 

     (x) If a new motor vehicle dealer has a dealer agreement for a

 

competing line make of new motor vehicles, require or otherwise

 

coerce the new motor vehicle dealer to exclude or remove the sale

 

or servicing of new motor vehicles of that competing line make from

 

the new motor vehicle dealer's place of business.

 

     (y) Prohibit a new motor vehicle dealer from locating sales or

 

service activities for a competing line make on, or relocating

 

sales or service activities for a competing line make to, an

 

existing place of business of the dealer or any other place of

 

business from which the dealer sells or services a line make of the

 

manufacturer, if the new motor vehicle dealer has provided written

 

notice to the manufacturer of the location of those sales or

 

service activities for the competing line make.

 

     (2) A manufacturer, or distributor, either directly or through

 

any subsidiary, shall not terminate, cancel, fail to renew, or

 

discontinue any lease of the a new motor vehicle dealer's

 

established place of business except for a material breach of the

 

lease.

 

     Sec. 14a. For a period of 5 years after the date that a

 

successor manufacturer acquires, succeeds to, or assumes any part

 

of the business of a predecessor manufacturer, the successor

 

manufacturer shall not enter into a dealer agreement in the

 

relevant market area of an established place of business of a

 

former dealer, or permit the relocation of any existing dealer into

 

that relevant market area, for the same line make as a line make of

 

the predecessor manufacturer that was included in the dealer

 

agreement of the former dealer, unless 1 of the following is met:


 

     (a) The successor manufacturer first offers a dealer agreement

 

for that line make in the relevant market area to the former

 

dealer, or the designated family member described in section 15 if

 

the former dealer is deceased or incapacitated, without cost to the

 

former dealer.

 

     (b) The successor manufacturer pays the former dealer, or the

 

designated family member described in section 15 if the former

 

dealer is deceased or incapacitated, fair and reasonable

 

compensation value of the dealership of the former dealer for that

 

line make, calculated in the same manner prescribed in section 11

 

for a termination, cancellation, nonrenewal, or discontinuance of a

 

dealer agreement.

 

     (c) The successor manufacturer establishes, in the circuit

 

court for the county in which the relevant market area is located,

 

that the former dealer, or the designated family member described

 

in section 15 if the former dealer is deceased or incapacitated, is

 

unfit to own or manage a dealership for that line make in the

 

relevant market area because the former dealer or designated family

 

member lacks sufficient training, experience, or financial capital;

 

because the former dealer or designated family member is

 

incompetent or of poor character; or because of the former dealer's

 

poor performance under the dealer agreement with the predecessor

 

manufacturer.

 

     Sec. 14b. (1) A manufacturer shall not require that a new

 

motor vehicle dealer, a proposed new motor vehicle dealer, or any

 

owner of an interest in a dealership facility enter into or agree

 

to a property use agreement as a condition to any of the following:


 

     (a) Awarding a dealer agreement to a prospective new motor

 

vehicle dealer.

 

     (b) Adding a line make or dealer agreement to an existing new

 

motor vehicle dealer.

 

     (c) Renewing a dealer agreement with an existing new motor

 

vehicle dealer.

 

     (d) Approving a relocation of a new motor vehicle dealer's

 

place of business.

 

     (e) Approving a sale or transfer of the ownership of a

 

dealership or a transfer of a dealer agreement to another person.

 

     (2) If a manufacturer and a new motor vehicle dealer are

 

voluntary parties to a property use agreement to which the dealer

 

has voluntarily agreed, that property use agreement terminates and

 

ceases to be effective immediately if the dealer agreement between

 

those parties is terminated, whether voluntarily, involuntarily, or

 

by operation of law, by any party to the dealer agreement, or a

 

successor or assignee of a party to the dealer agreement.

 

     (3) Any provision contained in any agreement entered into on

 

or after the effective date of this act that is inconsistent with

 

the provisions of this section is voidable at the election of the

 

affected new motor vehicle dealer, proposed new motor vehicle

 

dealer, or owner of an interest in the dealership facility.

 

     (4) As used in this section, "property use agreement" means

 

any of the following:

 

     (a) An agreement that requires that a new motor vehicle dealer

 

establish or maintain exclusive dealership facilities.

 

     (b) An agreement that restricts the ability of a new motor


 

vehicle dealer, or the ability of the dealer's lessor if the dealer

 

is leasing the dealership facility, to transfer, sell, lease, or

 

change the use of the place of business of the dealership, whether

 

by sublease, lease, collateral pledge of lease, right of first

 

refusal to purchase or lease, option to purchase, option to lease,

 

or other similar agreement, regardless of who the parties to that

 

agreement are.

 

     (c) Any similar agreement between a manufacturer and a new

 

motor vehicle dealer and commonly known as a site control agreement

 

or exclusive use agreement.

 

     Sec. 15. (1) Any designated family member of a deceased or

 

incapacitated new motor vehicle dealer or an executive manager of

 

the dealership may succeed the dealer in the ownership or operation

 

of the dealership under the existing dealer agreement if the

 

designated family member or executive manager gives the

 

manufacturer or distributor written notice of his or her intention

 

to succeed to the dealership within 120 days after the dealer's

 

death or incapacity, agrees to be bound by all of the terms and

 

conditions of the dealer agreement, and the designated family

 

member meets the current criteria generally applied by the

 

manufacturer or distributor in qualifying new motor vehicle

 

dealers. A manufacturer or distributor may refuse to honor continue

 

the existing dealer agreement with the designated family member

 

only for good cause.

 

     (2) The A manufacturer or distributor may request from a

 

designated family member such or executive manager described in

 

subsection (1) personal and financial data as is are reasonably


 

necessary to determine whether the existing dealer agreement should

 

be honored continue. The designated family member or executive

 

manager shall supply the personal and financial data promptly upon

 

the on request.

 

     (3) If a manufacturer or distributor believes that good cause

 

exists for refusing to honor the succession continue a dealer

 

agreement under this section with a designated family member or

 

executive manager described in subsection (1), the manufacturer or

 

distributor may, within 60 days after receipt of the receiving

 

notice of the designated family member's or executive manager's

 

intent to suceed succeed the dealer in the ownership and operation

 

of the dealership, or within 60 days after the receipt of receiving

 

the requested personal and financial data, serve upon on the

 

designated family member or executive manager notice of its refusal

 

to approve the succession.

 

     (4) The A notice of the refusal served by a manufacturer or

 

distributor provided in under subsection (3) shall state the

 

specific grounds for the refusal to approve the succession and that

 

discontinuance of the agreement shall take effect not less fewer

 

than 90 days after the date the notice is served.

 

     (5) If a notice of refusal described in subsection (3) is not

 

served within the 60 days provided for 60-day period described in

 

subsection (3), the dealer agreement shall continue in effect and

 

shall be is subject to termination only as otherwise permitted by

 

under this act.

 

     (6) This section does not preclude a new motor vehicle dealer

 

from designating any person as his or her successor by written


 

instrument filed with the manufacturer. or distributor, and if such

 

If the dealer files an instrument is filed described in this

 

subsection, it alone shall determine the succession rights to the

 

management and operation of the dealership.

 

     Sec. 17. (1) Each new motor vehicle manufacturer or

 

distributor shall specify in writing to each of its new motor

 

vehicle dealers licensed in this state the dealer's obligations for

 

preparation, delivery, and warranty service on its products. The A

 

manufacturer or distributor shall compensate the a new motor

 

vehicle dealer for warranty service required of the dealer by the

 

manufacturer. or distributor. The A manufacturer or distributor

 

shall provide the a new motor vehicle dealer with the schedule of

 

compensation to be paid to the dealer for parts, work, and service,

 

and the time allowance for the performance of the work and service.

 

     (2) The A schedule of compensation described in subsection (1)

 

shall include reasonable compensation for diagnostic work , as well

 

as and repair service and labor. Time allowances for the diagnosis

 

and performance of warranty work and service shall be reasonable

 

and adequate for the work to be performed. In the determination of

 

determining what constitutes reasonable compensation under this

 

section, the principal factor to be given consideration shall be is

 

the prevailing wage rates being paid by dealers in the community in

 

which the dealer is doing business, and in no event shall the

 

compensation of a dealer for warranty labor shall not be less than

 

the rates charged by the dealer for like service to retail

 

customers for nonwarranty service and repairs, provided that such

 

if those rates are reasonable.


 

     (3) A manufacturer or distributor shall not do any of the

 

following:

 

     (a) Fail to perform any warranty obligation.

 

     (b) Fail to include in written notices of factory recalls to

 

new motor vehicle owners and dealers the expected date by which

 

necessary parts and equipment will be available to dealers for the

 

correction of the defects.

 

     (c) Fail to compensate any of the a new motor vehicle dealers

 

dealer licensed in this state for repairs effected by made in

 

connection with the recall.

 

     (4) All claims A manufacturer shall pay a claim made by a new

 

motor vehicle dealer pursuant to under this section for labor and

 

parts shall be paid within 30 days after their its approval. All

 

claims shall be either approved or disapproved by the manufacturer

 

or distributor within 30 days after their receipt on a proper A

 

manufacturer shall either approve or disapprove a claim within 30

 

days after receiving the claim, submitted on the form generally

 

used by the manufacturer or distributor and containing the usually

 

required information therein usually required in the form. Any

 

claim not specifically disapproved in writing within 30 days after

 

the receipt of the form shall be manufacturer receives the claim

 

form is considered to be approved, and payment shall be made the

 

manufacturer shall pay the claim within 30 days. A claim which has

 

been manufacturer shall not charge back to a dealer a claim that it

 

has approved and paid may not be charged back to the dealer unless

 

the manufacturer can show shows that the claim was fraudulent,

 

false, or unsubstantiated. , except that a charge back for false or


 

fraudulent claims shall not be made However, even if a manufacturer

 

shows that a claim is fraudulent, false, or unsubstantiated, the

 

manufacturer may not charge back the amount paid for a fraudulent

 

or false claim more than 2 years after payment , and a of the claim

 

or charge back for the amount paid for an unsubstantiated claims

 

shall not be made claim more than 15 months after payment of the

 

claim. A new motor vehicle dealer shall maintain all records of

 

warranty repairs, including the related time records of its

 

employees, for at least 2 years following payment of any warranty

 

claim.

 

     (5) A manufacturer or distributor shall compensate the a new

 

motor vehicle dealer for manufacturer or distributor sponsored any

 

sales or service promotion events, programs, or activities

 

sponsored by the manufacturer, in accordance with established

 

guidelines for such those events, programs, or activities.

 

     (6) All claims made by A manufacturer shall pay a claim for

 

compensation owed to a new motor vehicle dealer pursuant to under

 

subsection (5) for a promotion events, programs, or activities

 

shall be paid event, program, or activity within 10 days after

 

their its approval. All claims shall be either approved or

 

disapproved by the A manufacturer or distributor shall either

 

approve or disapprove a claim for compensation described in this

 

subsection within 30 days after their receipt on a proper receiving

 

the claim, submitted on the form generally used by the manufacturer

 

or distributor and containing the information usually required

 

information therein in the form. Any claim not specifically

 

disapproved for compensation the manufacturer does not specifically


 

disapprove in writing within 30 days after the receipt of the

 

receiving the claim form shall be is considered to be approved, and

 

payment shall be made the manufacturer shall pay the amount of the

 

claim within 30 days. The A manufacturer has the right to may only

 

charge back any a claim for compensation within 6 months after the

 

later of either the close of the promotion event, program, or

 

activity , or the date of the payment.

 

     (7) A manufacturer may conduct an audit of the records of a

 

new motor vehicle dealer relating to a warranty or promotion claim

 

submitted by a new motor vehicle dealer under this section at any

 

time within 12 months after the claim is received by the

 

manufacturer. A motor vehicle dealer may conduct an audit of the

 

records of a manufacturer relating to a warranty or promotion claim

 

submitted by the new motor vehicle dealer that the manufacturer

 

failed or refused to approve at any time within 12 months after the

 

claim is received by the manufacturer.

 

     Sec. 20. (1) If a manufacturer or distributor terminates,

 

cancels, fails to renew, or discontinues a dealer agreement, for

 

other than without good cause as defined described in this act, the

 

new motor vehicle dealer may bring an action against the

 

manufacturer or distributor to recover actual damages reasonably

 

incurred by the dealer as a result of the termination,

 

cancellation, failure, or discontinuance.

 

     (2) A manufacturer or distributor who that violates this act

 

is liable for all damages sustained by a new motor vehicle dealer

 

as a result of the violation.

 

     (3) A manufacturer or distributor or new motor vehicle dealer


 

may bring an action for declaratory judgment for determination of

 

any controversy arising pursuant to under this act.

 

     (4) A manufacturer or distributor who that violates this act

 

shall be liable for all court costs and reasonable attorney's fees

 

incurred by the dealer is responsible for the actual amount of

 

costs and expenses incurred by the dealer in connection with the

 

action, including, but not limited to, court costs, amounts paid

 

for depositions or transcripts, expert witness fees, and the

 

dealer's actual attorney fees, as determined by the court.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 6099(request no.

 

04830'09) of the 95th Legislature is enacted into law.