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Home » US Law » 2022 Vermont Statutes » Title 9 - Commerce and Trade » Chapter 108 - Motor Vehicle Manufacturers, Distributors, and Dealers Franchising

§ 4083. Title of chapter

§ 4083. Title of chapter This chapter may be known and cited as the “Motor Vehicle Manufacturers, Distributors, and Dealers Franchising Practices Act.” (Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4084. Legislative findings

§ 4084. Legislative findings (a) The Legislature finds and declares that the distribution and sale of vehicles within this State vitally affects the general economy of the State and the public interest and the public welfare, and that in order to promote the public interest and the public welfare, and in the exercise of its […]

§ 4085. Definitions

§ 4085. Definitions The following words, terms, and phrases when used in this chapter shall have the meanings respectively ascribed to them in this section, except where the context clearly indicates a different meaning: (1) “Board” means the Transportation Board as established in 19 V.S.A. § 3. (2) “Coerce” means the failure to act in […]

§ 4086. Warranty and predelivery obligations to new motor vehicle dealers

§ 4086. Warranty and predelivery obligations to new motor vehicle dealers (a) Each new motor vehicle manufacturer shall specify in writing to each of its new motor vehicle dealers licensed in this State the dealer’s obligations for predelivery preparation and warranty service on its products, shall compensate the new motor vehicle dealer for such service […]

§ 4087. Transportation damages

§ 4087. Transportation damages (a) Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the manufacturer is liable for all damages to motor vehicles before delivery to a carrier or transporter. (b) If a new motor vehicle dealer determines the method of transportation, the risk of loss passes to the dealer upon delivery […]

§ 4088. Product liability indemnification

§ 4088. Product liability indemnification Notwithstanding the terms of any franchise agreement, it shall be a violation of this law for any new motor vehicle manufacturer to fail to indemnify and hold harmless its franchised dealers against any judgment or settlement for damages, after reasonable notice of the proposed settlement to the manufacturer, including court […]

§ 4089. Termination; cancellation or nonrenewal

§ 4089. Termination; cancellation or nonrenewal (a) Notwithstanding the terms, provisions, or conditions of any franchise or notwithstanding the terms or provisions of any waiver, no manufacturer shall cancel, terminate, or fail to renew any franchise with a licensed new motor vehicle dealer unless: (1) the manufacturer: (A) has satisfied the notice requirement of section […]

§ 4090. Notification of termination; cancellation and nonrenewal

§ 4090. Notification of termination; cancellation and nonrenewal (a) Notwithstanding the terms, provisions, or conditions of any franchise prior to the termination, cancellation, or nonrenewal of any franchise, the manufacturer shall furnish notification of such termination, cancellation, or nonrenewal to the new motor vehicle dealer as follows: (1) in the manner described in subsection (b) […]

§ 4091. Payments

§ 4091. Payments (a) Within 90 days of the termination, nonrenewal, or cancellation of any franchise by the manufacturer, pursuant to section 4089 or subdivision 4090(a)(2)(B) of this title or to the termination, nonrenewal, or cancellation of a franchise by the franchisee, the new motor vehicle dealer shall be paid by the manufacturer for the: […]

§ 4092. Dealership facilities assistance upon termination, cancellation, or nonrenewal

§ 4092. Dealership facilities assistance upon termination, cancellation, or nonrenewal (a) In the event of a termination, cancellation, or nonrenewal under this chapter; and (1) the new motor vehicle dealer is leasing the dealership facilities from a lessor other than the manufacturer, the manufacturer shall pay the new motor vehicle dealer a sum equivalent to […]

§ 4093. Right of designated family member to succeed in ownership

§ 4093. Right of designated family member to succeed in ownership (a) Any owner of a new motor vehicle dealer may appoint by will, or any other written instrument, a designated family member to succeed in the ownership interest of the new motor vehicle dealer. (b) Unless there exists good cause for refusal to honor […]

§ 4094. Refusal to honor succession to ownership; notice required

§ 4094. Refusal to honor succession to ownership; notice required (a) If a manufacturer or distributor believes that good cause exists for refusing to honor the succession to the ownership of a new motor vehicle dealer by a family member of a deceased or incapacitated owner of a new motor vehicle dealer under the existing […]

§ 4095. Burden of proof

§ 4095. Burden of proof In determining whether good cause for the refusal to honor the succession exists, the manufacturer, distributor, factory branch, or importer has the burden of proving that the successor is a person who is not of good moral character or does not meet the franchisor’s existing and reasonable standards and, considering […]

§ 4096. Unlawful acts by manufacturers or distributors

§ 4096. Unlawful acts by manufacturers or distributors It shall be a violation of this chapter for any manufacturer, as defined under this chapter, to require, attempt to require, coerce, or attempt to coerce any new motor vehicle dealer in this State: (1) To order or accept delivery of any new motor vehicle, part or […]

§ 4097. Manufacturer violations

§ 4097. Manufacturer violations It shall be a violation of this chapter for any manufacturer defined under this chapter: (1) To delay, refuse, or fail to deliver new motor vehicles or new motor vehicle parts or accessories in a reasonable time, and in reasonable quantity relative to the new motor vehicle dealer’s facilities and sales […]

§ 4098. Limitations on establishing or relocating dealers

§ 4098. Limitations on establishing or relocating dealers (a) In the event that a manufacturer seeks to enter into a franchise establishing an additional new motor vehicle dealer or relocating an existing new motor vehicle dealer within or into a relevant market area where the same line-make is then represented, the manufacturer shall in writing […]

§ 4099. Civil actions for violations

§ 4099. Civil actions for violations Notwithstanding the terms, provisions, or conditions of any agreement or franchise or the terms or provisions of any waiver, any consumer who is injured by a violation of this chapter, or any party to a franchise who is so injured in his or her business or property by a […]

§ 4100. Applicability

§ 4100. Applicability The provisions of this chapter shall apply to the conduct of all persons affected by the presumptions of this chapter situated in this State. Any person who engages directly or indirectly in purposeful contacts within this State in connection with the offering or advertising for sale of, or has business dealings with […]

§ 4100a. Agreements governed

§ 4100a. Agreements governed (a) All written agreements between a manufacturer or distributor and a new motor vehicle dealer shall be subject to the provisions of this chapter, and provisions of such agreements that are inconsistent with this chapter shall be void as against public policy and unenforceable in court or with the Board. (b) […]

§ 4100b. Enforcement; Transportation Board

§ 4100b. Enforcement; Transportation Board (a) The Transportation Board established in 19 V.S.A. § 3 shall enforce the provisions of this chapter. (b) The Board shall adopt rules to implement the provisions of this chapter. (c) Except for civil actions filed in Superior Court pursuant to section 4099 of this title, the Board shall have […]