Senate Bill No. 372–Senator Townsend
CHAPTER........
AN ACT relating to motor vehicles; revising the rights of dealers in new vehicles as against
manufacturers, importers and distributors; and providing other matters properly
relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 482 of NRS is hereby amended by adding thereto
the provisions set forth as sections 2 to 8, inclusive, of this act.
Sec. 2.
1. In addition to other criteria provided for determiningwhether good cause exists for terminating, refusing to continue,
modifying or replacing a franchise, or for establishing an additional
dealership or relocating an existing dealership, the director shall
consider the lasting nature of each affected dealer’s investment. The
investment includes commitments of the owner to the dealership, the
value of time and effort devoted to building the business, and any real
property of the owner used by the dealership whether or not held in the
name of the dealership.
2. The sole fact that a manufacturer or distributor desires further
penetration of the market does not constitute good cause to take any of
the actions described in subsection 1.
Sec. 3.
The director shall adopt regulations for the conduct ofdiscovery preliminary to each hearing required pursuant to NRS
482.36352, 482.36354 or 482.36357. The practice so established must
conform insofar as practicable to the practice established for use in the
district courts pursuant to N.R.C.P. 26 to 37, inclusive.
Sec. 4.
A manufacturer or distributor, or an agent, officer, parent,subsidiary or enterprise under common control with a manufacturer or
distributor shall not own or operate a facility for the repair or
maintenance of motor vehicles except:
1. Vehicles owned or operated by the manufacturer, distributor or a
related person; or
2. Service required to comply with a statute or regulation or the order
of a court.
Sec. 5.
It is an unfair act or practice for a manufacturer ordistributor to:
Sec. 6.
A manufacturer, importer or distributor shall not:1. Adopt or put into effect a method for the allocation, scheduling or
delivery of new motor vehicles, parts or accessories to its dealers that is
not fair, reasonable and equitable or change an existing method so as to
be unfair, unreasonable or inequitable. Upon the request of a dealer, a
manufacturer, importer or distributor shall disclose in writing to the
dealer the method by which new motor vehicles, parts and accessories are
allocated, scheduled or delivered to its dealers handling the same line or
make of vehicles.
2. Refuse or fail to deliver, in reasonable quantities and within a
reasonable time after receipt of an order, to a dealer holding a franchise
for a line or make of motor vehicle sold or distributed by the
manufacturer, importer or distributor any new vehicle sold under the
same name, trade-mark, service mark or brand, or parts or accessories
for the new vehicle, if the vehicle, parts or accessories are being delivered
to others or advertised as available for delivery, or require a dealer to
purchase unreasonable advertising displays or other materials, or require
a dealer to remodel or renovate his existing facilities as a prerequisite to
receiving a model or series of vehicles. Compliance with this subsection
is excused if prevented by an act of God, strike or labor dispute, embargo
or other cause beyond the control of the manufacturer, importer or
distributor.
Sec. 7.
1. Except as otherwise provided in NRS 482.36396 to482.36414, inclusive, if a transfer of the entire, or substantially the
entire, ownership or of all, or substantially all, the assets of a dealership
is proposed, a manufacturer or distributor may exercise a contractual
right of first refusal only if all the following requirements are met:
(a) The transfer is not to the dealer’s spouse, a member of his family,
a qualified manager, or a trust or artificial person controlled by any of
them.
(b) The manufacturer or distributor notifies the dealer in writing,
within 60 days after receipt of the completed form and information
customarily used to review such transfers and a copy of all relevant
agreements, of its intent to exercise the right of first refusal or its
rejection of the proposed transfer. If the manufacturer or distributor fails
to notify the dealer within the 60-day period, the effect is to approve the
proposed transfer.
(c) The exercise of the right of first refusal provides to the dealer the
same compensation as or greater compensation than he had negotiated
to receive from the proposed transferee.
(d) The manufacturer or distributor agrees to pay the reasonable
expenses, including attorney’s fees that do not exceed the usual and
reasonable fees charged to other clients for similar work, incurred by the
proposed transferee before the exercise of the right of first refusal in
negotiating and putting into effect the proposed transfer.
2. A manufacturer or distributor shall not utilize a right of first
refusal to influence terms offered by a third person, or to influence a
third person to refrain from negotiating, for the acquisition of a
dealership.
Sec. 8.
A manufacturer shall not require a dealer to discloseinformation concerning a customer to the manufacturer or a third party
if the customer objects or the disclosure is otherwise unlawful.
Sec. 9. NRS 482.36311 is hereby amended to read as follows:
andSec. 10. NRS 482.36352 is hereby amended to read as follows:
1. [The permanency of the investment of each affected dealer.
Sec. 14. NRS 482.36361 is hereby amended to read as follows:
(b)
hearing on his protest; and
Sec. 15. NRS 482.36363 is hereby amended to read as follows:
Sec. 17. NRS 482.3638 is hereby amended to read as follows:
Sec. 18.
NRS 482.36385 is hereby amended to read as follows:Sec. 19. NRS 482.36395 is hereby amended to read as follows:
Sec. 20. NRS 482.36423 is hereby amended to read as follows:
Sec. 21. NRS 482.36375 is hereby repealed.