§ 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 costs and reasonable attorney’s fees of the new motor vehicle dealer, arising out of complaints, claims, or lawsuits including strict liability, negligence, misrepresentation, warranty (express or implied), or rescission of the sale as is defined in 9A V.S.A. § 2—608 of the Uniform Commercial Code, to the extent that the judgment or settlement relates to the alleged defective or negligent manufacture, assembly, or design of new motor vehicles, parts, or accessories or other functions by the manufacturer, beyond the control of the dealer. (Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982.)