SUMMARY--Prohibits certain selective groupings of motor vehicle dealers by motor vehicle manufacturers, distributors, factory branches or their representatives to measure effectiveness or performance of individual dealers. (BDR 43-366)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to motor vehicles; prohibiting certain selective groupings of dealers by motor vehicle manufacturers, distributors, factory branches or their representatives to measure the effectiveness or performance of individual dealers with regard to sales; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 482.36395 is hereby amended to read as follows:
482.36395 No motor vehicle manufacturer, distributor, factory branch or representative thereof may:
1. Encourage, aid or abet a dealer to sell motor vehicles through any false, deceptive or misleading sales or financing practice.
2. Refuse to deliver an order of a dealer within 60 days after the order is received in writing unless the inability to deliver the order is caused by shortage or curtailment of material, labor, production capacity, transportation or utility services, or to any labor or production difficulty, or to any cause beyond the reasonable control of the motor vehicle manufacturer or distributor.
3. Coerce, compel or otherwise require any dealer to pay over or to repay any amount of money or other consideration which is in substantiation of or repayment for any advertising, promotion activity or scheme, or method of implementing the sale of motor vehicles.
4. Demand or require, directly or indirectly, a dealer to pay any amount of money which is projected or proposed for the advertisement, display or promotion of any motor vehicle which is being sold pursuant to a franchise, unless the dealer has agreed thereto in writing.
5. Demand or require, directly or indirectly, a dealer to comply with standards which exceed commonly accepted business practices within the automotive industry relating to sales or service of motor vehicles.
6. Based solely upon the results of a survey of a dealer's customers conducted by or on behalf of a motor vehicle manufacturer which is intended or otherwise purports to measure the performance of a dealer:
(a) Discriminate, directly or indirectly, against a dealer; or
(b) Take any action to terminate a dealer's franchise.
This subsection does not prohibit a motor vehicle manufacturer, distributor, factory branch or representative thereof from conducting a contest or other award program to recognize the performance of a dealer based on reasonable criteria relating to sales or service of motor vehicles.
7. Selectively group dealers together to measure the effectiveness or performance of individual dealers with regard to sales unless the grouping consists of dealers that are of a similar size, have similar actual annual retail sales, have a similar geographic area of responsibility and serve a similar size population.