§ 466 — Unreasonable restrictions

New York § 466

• Jurisdiction: New York
• Law VAT: Vehicle & Traffic
• Title 4: Registration of Vehicles
• Art. 17-A: Franchised Motor Vehicle Dealer Act

Text

§ 466. Unreasonable restrictions. 1. It shall be unlawful for a\nfranchisor directly or indirectly to impose unreasonable restrictions on\nthe franchised motor vehicle dealer relative to transfer, sale, right to\nrenew or termination of a franchise, discipline, noncompetition\ncovenants, site-control (whether by sublease, collateral pledge of lease\nor otherwise), right of first refusal to purchase, option to purchase,\ncompliance with subjective standards and assertion of legal or equitable\nrights with respect to its franchise or dealership.\n 2. It shall be deemed an unreasonable restriction upon the sale or\ntransfer of a dealership for a franchisor (i) directly or indirectly to\nprevent or attempt to prevent a franchised motor vehicle dealer from\nobtaining the fair value of the franchise or the fair value of the\ndealership business as a going concern; or (ii) to refuse to approve the\nsale or transfer of a dealership due to the fact that the franchised\nmotor vehicle dealer owns, has an investment in, participates in the\nmanagement of or holds a franchise for the sale or service of another\nline make of new motor vehicles, or that the franchised motor vehicle\ndealer has established another franchise in the same dealership\nfacilities for the sale or service of another line make of new motor\nvehicles prior to the effective date of this paragraph, or the other\nfranchise has been approved in writing by the franchisor.\n