§ 44-20-202 — Exclusive finance agreements void - when

It is unlawful for any
person who is engaged, either directly or indirectly, in the manufacture or
distribution of motor vehicles, to sell or enter into a contract to sell motor vehicles,
whether patented or unpatented, to any person who is engaged or intends to
engage in the business of selling the motor vehicles at retail in this state, on the
condition or with an agreement or understanding, either express or implied, that the
person so engaged in selling motor vehicles at retail in any manner shall finance the
purchase or sale of any one or number of motor vehicles only with or through a
designated person or class of persons or shall sell and assign the conditional sales
contracts, chattel mortgages, or leases arising from the sale of motor vehicles or
any one or number thereof only to a designated person or class of persons, when
the effect of the condition, agreement, or understanding so entered into may be to
lessen or eliminate competition, or create or tend to create a monopoly in the
person or class of persons who are designated, by virtue of the condition,
agreement, or understanding to finance the purchase or sale of motor vehicles or to
purchase conditional sales contracts, chattel mortgages, or leases. Any such
condition, agreement, or understanding is declared to be void and against the
public policy of this state.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 90, � 2, effective October 1.