§ 56-15-75 — Requiring dealer to refrain from acquiring another line of new motor vehicles.

It is unlawful for any manufacturer, distributor, factory branch, distributor branch, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to refrain from participation in the management of, investment in, or acquisition of any other make or line of new motor vehicles or related products if: (1) the requirements are unreasonable considering current economic conditions and are not otherwise justified by reasonable business considerations; (2) the motor vehicle dealer has maintained a reasonable line of credit for each make or line of a new motor vehicle; and (3) the motor vehicle dealer remains in compliance with reasonable capital standards and reasonable facilities requirements specified by the manufacturer. Reasonable facilities requirements shall not include any requirement that a motor vehicle dealer establish or maintain exclusive facilities, personnel, or display space, unless the manufacturer or distributor establishes by a preponderance of the evidence that such requirements are justified by current economic conditions or reasonable business considerations.

Legislative History

HISTORY: 2009 Act No. 52, SECTION 2, eff upon approval (became law without the Governor's signature on June 3, 2009).