§ 47-596.3. Dealer sales responsibility.  


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  • A.  All of the following conditions shall apply to the area of sales responsibility of a dealer included in a dealer agreement between a manufacturer and a dealer:

    1.  The manufacturer shall designate in the dealer agreement the area of sales responsibility exclusively assigned to the dealer;

    2.  The manufacturer shall not change the area of sales responsibility of a dealer or establish another dealer for the same line-make in that area during the term of the dealer agreement; and

    3.  The area of sales responsibility may not be reviewed or changed without the consent of both parties until one (1) year after the execution of the dealer agreement.

    B.  A dealer may not conduct sales activity or display for sale recreational vehicles outside of its designated area of sales responsibility.

    C.  A dealer may sell off-premise within the area of sales responsibility of the dealer under the following circumstances:

    1.  At sanctioned recreational vehicle shows where the sales event is held off-premise and at least sixty-seven percent (67%) of the recreational vehicle dealers that are located within a sixty-mile radius of the location of the show participate in the show.  A sanctioned recreational vehicle show may be held only under the following conditions:

    a.the sponsoring entity of the sales event shall obtain a permit from the OMVC at the rate of Two Hundred Dollars ($200.00) per event.  The permit shall be for a period not to exceed ten (10) consecutive days,

    b.dealer permits for a sanctioned recreational vehicle show described in this paragraph shall be obtained from the OMVC at a rate of Fifteen Dollars ($15.00) for each motor home per sanctioned recreational vehicle show,

    c.new recreational vehicle dealers whose manufacturer-approved area of responsibility includes the event location shall be eligible to participate in the sanctioned recreational vehicle show,

    d.new recreational vehicle dealers shall obtain written approval from the manufacturer or distributor to participate in the sanctioned recreational vehicle show, and

    e.the sanctioned recreational vehicle show shall be conducted within municipal, county, or state-owned or controlled facilities or within the grounds of any county, district, or state fair; and

    2.  At nonsanctioned recreational vehicle shows where one or more dealers may sell recreational vehicles off-premise under the following conditions:

    a.dealer permits for a nonsanctioned recreational vehicle show described in this paragraph shall be obtained from the OMVC at a rate of Fifteen Dollars ($15.00) for each recreational vehicle per nonsanctioned recreational vehicle show,

    b.the location of the nonsanctioned recreational vehicle show shall be within the manufacturer-approved area of responsibility,

    c.the nonsanctioned recreational vehicle show shall occur no more than five (5) consecutive days per event, excluding county, district, or state fairs,

    d.each dealer may participate in no more than eight nonsanctioned recreational vehicle shows per calendar year, and

    e.nonsanctioned recreational vehicle shows shall be held on privately owned property no closer than two and one-half (2 1/2) miles to any other nonparticipating recreational vehicle dealer; provided, however a nonsanctioned recreational vehicle show may be held on county or municipally owned property with no mileage barrier restriction.

    D.  A dealer may display a recreational vehicle within the designated area of responsibility of the dealer for promotional purposes.  At an off-premise display event, no sales activities shall be conducted including, but not limited to, negotiations, financing and accepting credit applications.  Sales or finance personnel shall not be permitted to participate at an off-premise display event.  A permit for the off-premise display event shall not be required.

    E.  A dealer agreement shall include a designated principal of the dealer.  A dealer agreement may identify a family member as the successor of the principal or include a succession plan of the dealer.  A dealer may at any time change a designation or succession plan made in the dealer agreement by providing written notice to the manufacturer.

Added by Laws 2011, c. 272, § 5, eff. Jan. 1, 2012.