Senate Bill No. 355–Committee on Transportation

 

March 17, 2003

____________

 

Referred to Committee on Transportation

 

SUMMARY—Makes various changes concerning franchises for vehicles. (BDR 43‑1238)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to vehicles; extending under certain circumstances the coverage of provisions relating to franchises for motor vehicles to include recreational vehicles designed to be mounted upon or drawn by a motor vehicle; revising the provision regarding the compensation owed to a dealer upon the termination or discontinuance of a franchise; requiring the Director of the Department of Motor Vehicles under certain circumstances to award attorney’s fees and costs to dealers; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1.  Chapter 482 of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 and 3 of this act.

1-3  Sec. 2.  “Distributor” means a person, other than a

1-4  manufacturer, who is engaged in the business of selling new

1-5  vehicles to dealers.

1-6  Sec. 3.  “Vehicle” means a motor vehicle or a recreational

1-7  vehicle. The term includes a recreational vehicle designed to be

1-8  mounted upon or drawn by a motor vehicle.

1-9  Sec. 4.  NRS 482.028 is hereby amended to read as follows:

1-10      482.028  [“Distributor”] Except as otherwise provided in

1-11  section 2 of this act, “distributor” means a person, other than a

2-1  manufacturer, who is engaged in the business of selling new motor

2-2  vehicles to dealers.

2-3  Sec. 5.  NRS 482.043 is hereby amended to read as follows:

2-4  482.043  “Franchise” means a written agreement between a

2-5  manufacturer or distributor and a dealer by which:

2-6  1.  A commercial relationship of definite duration or continuing

2-7  indefinite duration is established.

2-8  2.  The dealer is granted the right to offer and sell at retail new

2-9  [motor] vehicles, other than mopeds, farm tractors or special mobile

2-10  equipment.

2-11      3.  The dealer constitutes a component of a distribution system

2-12  for new [motor] vehicles.

2-13      4.  The operation of the dealer’s business is substantially

2-14  associated with the trademark, trade name, advertising or other

2-15  commercial symbol designating a manufacturer or distributor.

2-16      5.  The operation of a portion of the dealer’s business is

2-17  substantially reliant on the manufacturer or distributor for a

2-18  continued supply of new [motor] vehicles, parts and accessories.

2-19      Sec. 5.5. (Deleted by amendment.)

2-20      Sec. 6.  NRS 482.135 is hereby amended to read as follows:

2-21      482.135  1.  [“Vehicle”] Except as otherwise provided in

2-22  section 3 of this act, “vehicle” means every device in, upon or by

2-23  which any person or property is or may be transported or drawn

2-24  upon a public highway, excepting devices moved by human power

2-25  or used exclusively upon stationary rails or tracks.

2-26      2.  The term does not include mobile homes or commercial

2-27  coaches as defined in chapter 489 of NRS.

2-28      Sec. 7.  NRS 482.36311 is hereby amended to read as follows:

2-29      482.36311  As used in NRS 482.36311 to 482.36425, inclusive,

2-30  and sections 2 and 3 of this act, unless the context otherwise

2-31  requires, the words and terms defined in NRS 482.36319 to

2-32  482.36345, inclusive, and section 2 and 3 of this act have the

2-33  meanings ascribed to them in those sections.

2-34      Sec. 8.  NRS 482.36319 is hereby amended to read as follows:

2-35      482.36319  “Distributor branch” means a branch office

2-36  maintained by a distributor for the sale of new [motor] vehicles to

2-37  dealers or which is maintained for directing and supervising

2-38  distributor branch representatives.

2-39      Sec. 9.  NRS 482.3632 is hereby amended to read as follows:

2-40      482.3632  “Factory branch” means a branch office maintained

2-41  by a manufacturer for the sale of new [motor] vehicles to

2-42  distributors or dealers or which is maintained for directing and

2-43  supervising manufacturers’ representatives.

 

3-1  Sec. 10.  NRS 482.36345 is hereby amended to read as

3-2  follows:

3-3  482.36345  “Representative” means any person regularly

3-4  employed by a manufacturer or distributor for the purpose of

3-5  negotiating or promoting the sale of the manufacturer’s or

3-6  distributor’s new [motor] vehicles to dealers or for regularly

3-7  supervising or communicating with dealers or prospective dealers in

3-8  this state for any purpose.

3-9  Sec. 11.  NRS 482.363521 is hereby amended to read as

3-10  follows:

3-11      482.363521  1.  Upon the termination or refusal to continue a

3-12  franchise, the manufacturer or distributor shall compensate the

3-13  dealer for:

3-14      (a) The dealer’s inventory of new vehicles, including new

3-15  vehicles not of the current model year [.] if delivered to the dealer

3-16  during the 18-month period immediately preceding the effective

3-17  date of the termination or refusal to continue the franchise. As

3-18  used in this paragraph, a “new vehicle” is one which has not been

3-19  damaged , [or] materially altered [and registers 50 miles or less on

3-20  its odometer.] or registered with the Department or with the

3-21  appropriate agency of authority of any other state, the District of

3-22  Columbia, any territory or possession of the United States or any

3-23  foreign state, province or country.

3-24      (b) The dealer’s inventory of parts and accessories which:

3-25          (1) Have been purchased by the dealer from the manufacturer

3-26  or distributor; and

3-27          (2) Are listed in a current parts catalog of the manufacturer

3-28  or distributor.

3-29      (c) Any special tools purchased by the dealer from the

3-30  manufacturer or distributor, less a reasonable allowance for

3-31  depreciation.

3-32      (d) Any equipment, furnishings or signs purchased by the dealer

3-33  from the manufacturer or distributor, less a reasonable allowance for

3-34  depreciation.

3-35      (e) Except as otherwise provided in subsection 4, the fair rental

3-36  value for 90 days, and any additional period allowed by the Director

3-37  after considering the difficulty of finding a new tenant for the

3-38  dealer’s premises affected, after the effective date of the termination

3-39  or refusal to continue of the portion of the dealer’s place of business

3-40  that was used by the dealer to sell or service [motor] vehicles or

3-41  other products of the manufacturer or distributor.

3-42      2.  Compensation paid pursuant to paragraphs (a) to (d),

3-43  inclusive, of subsection 1 must be paid in an amount at least equal to

3-44  the greater of:

4-1  (a) The amount actually paid by the dealer for the vehicles,

4-2  parts, tools and equipment; or

4-3  (b) The amount currently paid by other dealers in this state for

4-4  the vehicles, parts, tools and equipment.

4-5  3.  If compensation is paid pursuant to paragraph (e) of

4-6  subsection 1, the dealer shall allow the manufacturer or distributor

4-7  paying the compensation the use and possession of the premises

4-8  affected.

4-9  4.  The manufacturer or distributor is not required to pay

4-10  compensation pursuant to paragraph (e) of subsection 1 if the dealer

4-11  has been convicted of a crime involving fraud in connection with his

4-12  application for or operation of the franchise.

4-13      5.  This section does not relieve a dealer of his obligation to

4-14  mitigate damages resulting from the termination or refusal to

4-15  continue the franchise.

4-16      Sec. 12.  NRS 482.363523 is hereby amended to read as

4-17  follows:

4-18      482.363523  Upon the termination or refusal to continue a

4-19  franchise, the dealer:

4-20      1.  May not require reimbursement by the manufacturer or

4-21  distributor for any parts or services furnished by the dealer, after the

4-22  effective date of the termination or refusal to continue, to customers

4-23  pursuant to any warranties of the manufacturer or distributor;

4-24      2.  Shall deliver to the manufacturer or distributor any invoices

4-25  and money deposited by customers for [motor] vehicles or other

4-26  products of the manufacturer or distributor that were not delivered

4-27  to the customers before the effective date of the termination or

4-28  refusal to continue; and

4-29      3.  Shall furnish the manufacturer or distributor with copies of

4-30  all of his records concerning the servicing of any [motor] vehicle or

4-31  other product of the manufacturer or distributor. The manufacturer

4-32  or distributor shall reimburse the dealer for the reasonable cost of

4-33  compiling and copying the records and delivering the copies.

4-34      Sec. 13.  NRS 482.36358 is hereby amended to read as

4-35  follows:

4-36      482.36358  In determining whether good cause has been

4-37  established for preventing a manufacturer or distributor from

4-38  establishing an additional dealership or relocating an existing

4-39  dealership within the relevant market area of another dealer in the

4-40  same line and make of vehicles, the Director shall consider, without

4-41  limitation:

4-42      1.  The effect of the intended action on the business of selling

4-43  new [motor] vehicles at retail in the relevant market area.

4-44      2.  Whether the establishment of an additional dealership or the

4-45  relocation of an existing dealership for [motor] vehicles of

 

5-1  the particular line and make would be injurious to the welfare of the

5-2  public.

5-3  3.  Whether the dealers franchised to sell new [motor] vehicles

5-4  of the particular line and make in the relevant market area are

5-5  providing adequate competition, convenient customer service and

5-6  adequate personnel and facilities for sales of the vehicles to persons

5-7  in the area, as well as adequate equipment, spare parts and qualified

5-8  mechanics and other service personnel for repair and maintenance of

5-9  the vehicles.

5-10      4.  Whether the establishment of an additional dealership or the

5-11  relocation of an existing dealership would increase constructive

5-12  competition and therefore be in the public interest.

5-13      5.  Any other fact which the Director regards as relevant to the

5-14  decision required of him.

5-15      Sec. 14.  NRS 482.36366 is hereby amended to read as

5-16  follows:

5-17      482.36366  1.  Each witness, other than an officer or employee

5-18  of the State or of a political subdivision of the State [,] or an expert

5-19  witness, who appears by order of the Director in a hearing pursuant

5-20  to NRS 482.36311 to 482.36425, inclusive, and sections 2 and 3 of

5-21  this act, is entitled to receive for his attendance the same fees

5-22  allowed by law to witnesses in civil cases. [The] Except as

5-23  otherwise provided in subsection 2, the amount must be paid by the

5-24  party at whose request the witness is ordered to appear.

5-25      2.  The Director may assess other costs against the parties as he

5-26  deems appropriate. After any hearing on a protest filed pursuant to

5-27  NRS 482.36352, 482.36354 or 482.36357, if the Director

5-28  determines that the manufacturer or distributor has failed to

5-29  establish that there is good cause to terminate, refuse to continue,

5-30  modify or replace a franchise, or to establish an additional

5-31  dealership or relocate an existing dealership, the Director shall

5-32  award to the dealer his attorney’s fees and costs.

5-33      3.  For the purposes of this section, “costs” includes:

5-34      (a) Except as otherwise provided in paragraph (b), any

5-35  applicable cost set forth in NRS 18.005; and

5-36      (b) The actual amount of any fees paid by a dealer to an expert

5-37  witness in connection with the hearing.

5-38      Sec. 15.  NRS 482.3638 is hereby amended to read as follows:

5-39      482.3638  It is an unfair act or practice for any manufacturer,

5-40  distributor or factory branch, directly or through any representative,

5-41  to:

5-42      1.  Require a dealer to agree to a release, assignment, novation,

5-43  waiver or estoppel which purports to relieve any person from

5-44  liability imposed by this chapter, or require any controversy

5-45  between a dealer and a manufacturer, distributor or representative to

6-1  be referred to any person or agency except as set forth in this

6-2  chapter if that referral would be binding on the dealer, except that

6-3  this section does not prevent the parties from mutually agreeing to

6-4  arbitration pursuant to law.

6-5  2.  Require a dealer to agree to the jurisdiction, venue or

6-6  tribunal in which a controversy arising under the provisions of the

6-7  franchise agreement may or may not be submitted for resolution, or

6-8  prohibit a dealer from bringing an action in any forum allowed by

6-9  Nevada law.

6-10      3.  Require a dealer to waive a trial by jury in actions involving

6-11  the manufacturer, distributor or factory branch.

6-12      4.  Increase prices of new [motor] vehicles whichthe dealer had

6-13  ordered for private retail consumers before his receipt of the written

6-14  official notification of a price increase. A sales contract signed by a

6-15  retail consumer constitutes evidence of each order. Price changes

6-16  applicable to new [model] models or series [motor] of vehicles at

6-17  the time of the introduction of the new models or series shall not be

6-18  deemed a price increase. Price changes caused by:

6-19      (a) The addition to a [motor] vehicle of equipment formerly

6-20  optional as standard or required equipment pursuant to state or

6-21  federal law;

6-22      (b) Revaluation of the United States dollar in the case of

6-23  foreign-made vehicles; or

6-24      (c) Transportation cost increases,

6-25  are not subject to this subsection.

6-26      5.  Deny the principal owner the opportunity to designate his

6-27  spouse, a member of his family, a qualified manager, or a trust or

6-28  other artificial person controlled by any of them as entitled to

6-29  participate in the ownership of:

6-30      (a) The franchised dealership;

6-31      (b) A successor franchised dealership for 2 years or a longer

6-32  reasonable time after the incapacity of the principal owner; or

6-33      (c) A successor franchised dealership after the death of the

6-34  principal in accordance with NRS 482.36396 to 482.36414,

6-35  inclusive.

6-36      6.  Modify unilaterally, replace, enter into, relocate, terminate

6-37  or refuse to renew a franchise in violation of law.

6-38      7.  Terminate or refuse to approve a transfer of a franchise for a

6-39  dealership, or honor the right of succession set forth in a franchise

6-40  agreement or refuse to approve the transfer of a controlling interest

6-41  in a dealership because the dealer has, before October 1, 1997,

6-42  established an additional franchise to sell or service another line or

6-43  make of new vehicles in the same facility as the existing dealership.

6-44      8.  Prevent a dealer from establishing, on or after October 1,

6-45  1997, an additional franchise to sell or service another line or make

7-1  of new vehicles in the same facility as the existing dealership if the

7-2  dealer:

7-3  (a) Submits a written request for approval of the additional

7-4  franchise to the manufacturer, distributor or factory branch of the

7-5  existing dealership;

7-6  (b) Complies with the reasonable requirements for approval set

7-7  forth in the franchise of the existing dealership; and

7-8  (c) Obtains the approval of the manufacturer, distributor or

7-9  factory branch of the existing dealership.

7-10  The manufacturer, distributor or factory branch shall notify the

7-11  dealer in writing of its decision to approve or deny the request

7-12  within 90 days after receipt of the request. The manufacturer,

7-13  distributor or factory branch shall not unreasonably withhold its

7-14  approval. If the request is denied, the material reasons for the denial

7-15  must be stated. Failure to approve or deny the request, in writing,

7-16  within 90 days has the effect of approval.

7-17      Sec. 16.  NRS 482.36385 is hereby amended to read as

7-18  follows:

7-19      482.36385  It is an unfair act or practice for any manufacturer,

7-20  distributor or factory branch, directly or through any representative,

7-21  to:

7-22      1.  Compete with a dealer. A manufacturer or distributor shall

7-23  not be deemed to be competing when operating a previously

7-24  existing dealership temporarily for a reasonable period, or in a bona

7-25  fide retail operation which is for sale to any qualified person at a fair

7-26  and reasonable price, or in a bona fide relationship in which a

7-27  person has made a significant investment subject to loss in the

7-28  dealership and can reasonably expect to acquire full ownership of

7-29  the dealership on reasonable terms and conditions.

7-30      2.  Discriminate unfairly among its dealers, or fail without good

7-31  cause to comply with franchise agreements, with respect to warranty

7-32  reimbursement or authority granted to its dealers to make warranty

7-33  adjustments with retail customers.

7-34      3.  Fail to compensate a dealer fairly for the work and services

7-35  which he is required to perform in connection with the delivery and

7-36  preparation obligations under any franchise, or fail to compensate a

7-37  dealer fairly for labor, parts and other expenses incurred by him

7-38  under the manufacturer’s warranty agreements. The manufacturer

7-39  shall set forth in writing the respective obligations of a dealer and

7-40  the manufacturer in the preparation of a vehicle for delivery, and as

7-41  between them a dealer’s liability for a defective product is limited to

7-42  his obligation so set forth. Fair compensation includes diagnosis and

7-43  reasonable administrative and clerical costs. The dealer’s

7-44  compensation for parts and labor to satisfy a warranty must not be

7-45  less than the amount of money charged to its various retail

8-1  customers for parts and labor that are not covered by a warranty. If

8-2  parts are supplied by the manufacturer, including exchanged parts

8-3  and assembled components, the dealer is entitled with respect to

8-4  each part to an amount not less than his normal retail markup for the

8-5  part. This subsection does not apply to compensation for any part,

8-6  system, fixture, appliance, furnishing, accessory or feature of a

8-7  motor home or recreational vehicle that is designed, used and

8-8  maintained primarily for nonvehicular, residential purposes.

8-9  4.  Fail to pay all claims made by dealers for compensation for

8-10  delivery and preparation work, transportation claims, special

8-11  campaigns and work to satisfy warranties within 30 days after

8-12  approval, or fail to approve or disapprove such claims within 30

8-13  days after receipt, or disapprove any claim without notice to the

8-14  dealer in writing of the grounds for disapproval. Failure to approve

8-15  or disapprove or to pay within the specified time limits in an

8-16  individual case does not constitute a violation of this section if the

8-17  failure is because of reasons beyond the control of the manufacturer,

8-18  distributor or factory branch.

8-19      5.  Sell a new [motor] vehicle to a person who is not licensed as

8-20  a new [motor] vehicle dealer under the provisions of this chapter.

8-21      6.  Use false, deceptive or misleading advertising or engage in

8-22  deceptive acts in connection with the manufacturer’s or distributor’s

8-23  business.

8-24      7.  Perform an audit to confirm a warranty repair, sales

8-25  incentive or rebate more than 12 months after the date of the

8-26  transaction.

8-27      Sec. 17.  NRS 482.36386 is hereby amended to read as

8-28  follows:

8-29      482.36386  It is an unfair act or practice for a manufacturer or

8-30  distributor to:

8-31      1.  Sell or offer to sell a new [motor] vehicle to a dealer at a

8-32  lower actual price than the actual price offered to another dealer for

8-33  the same model similarly equipped or to use a promotion or other

8-34  device that results in a lower actual price. This subsection does not

8-35  apply to a sale to a governmental unit or to a dealer for resale to a

8-36  governmental unit, or to a sale to a dealer of a vehicle ultimately

8-37  sold, donated or used by the dealer or in a program of driver’s

8-38  education.

8-39      2.  Offer, sell or lease a new [motor] vehicle to any person,

8-40  except a distributor, at a lower actual price than the price offered or

8-41  charged a dealer for the same model similarly equipped, or use any

8-42  device that results in a lower actual price.

8-43      3.  Offer or sell parts or accessories to a dealer for his own use

8-44  in repairing or replacing the same or a comparable part or accessory

8-45  at a lower actual price than the actual price charged to another

9-1  dealer for his own similar use, but a lower price may be charged to a

9-2  dealer who buys as a distributor for resale to retail outlets than is

9-3  charged to a dealer who does not buy for that purpose.

9-4  Sec. 18.  NRS 482.36387 is hereby amended to read as

9-5  follows:

9-6  482.36387  A manufacturer or distributor, or an agent, officer,

9-7  parent, subsidiary or enterprise under common control with a

9-8  manufacturer or distributor shall not own or operate a facility for the

9-9  repair or maintenance of [motor] vehicles except:

9-10      1.  Vehicles owned or operated by the manufacturer, distributor

9-11  or a related person; or

9-12      2.  Service required to comply with a statute or regulation or the

9-13  order of a court.

9-14      Sec. 19.  NRS 482.36388 is hereby amended to read as

9-15  follows:

9-16      482.36388  A manufacturer, importer or distributor shall not:

9-17      1.  Adopt or put into effect a method for the allocation,

9-18  scheduling or delivery of new [motor] vehicles, parts or accessories

9-19  to its dealers that is not fair, reasonable and equitable or change an

9-20  existing method so as to be unfair, unreasonable or inequitable.

9-21  Upon the request of a dealer, a manufacturer, importer or distributor

9-22  shall disclose in writing to the dealer the method by which new

9-23  [motor] vehicles, parts and accessories are allocated, scheduled or

9-24  delivered to its dealers handling the same line or make of vehicles.

9-25      2.  Refuse or fail to deliver, in reasonable quantities and within

9-26  a reasonable time after receipt of an order, to a dealer holding a

9-27  franchise for a line or make of [motor] vehicle sold or distributed by

9-28  the manufacturer, importer or distributor any new vehicle sold under

9-29  the same name, trademark, service mark or brand, or parts or

9-30  accessories for the new vehicle, if the vehicle, parts or accessories

9-31  are being delivered to others or advertised as available for delivery,

9-32  or require a dealer to purchase unreasonable advertising displays or

9-33  other materials, or require a dealer to remodel or renovate his

9-34  existing facilities as a prerequisite to receiving a model or series of

9-35  vehicles. Compliance with this subsection is excused if prevented by

9-36  an act of God, strike or labor dispute, embargo or other cause

9-37  beyond the control of the manufacturer, importer or distributor.

9-38      Sec. 20.  NRS 482.36391 is hereby amended to read as

9-39  follows:

9-40      482.36391  No [motor vehicle] manufacturer, distributor,

9-41  factory branch or representative thereof may induce by means of

9-42  coercion, intimidation or discrimination any dealer to:

9-43      1.  Order or accept delivery of any [motor] vehicle, parts or

9-44  accessories therefor, or any other commodity which was not

9-45  voluntarily ordered by [such] the dealer.

10-1      2.  Order or accept delivery of any [motor] vehicle with special

10-2  features, appliances, accessories or equipment not included in the

10-3  list price of [such] the vehicle as publicly advertised by the

10-4  manufacturer thereof.

10-5      3.  Order from any person any parts, accessories, equipment,

10-6  machinery, tools, appliances or other commodity.

10-7      Sec. 21.  NRS 482.36395 is hereby amended to read as

10-8  follows:

10-9      482.36395  No [motor vehicle] manufacturer, distributor,

10-10  factory branch or representative thereof may:

10-11     1.  Encourage, aid or abet a dealer to sell or lease [motor]

10-12  vehicles through any false, deceptive or misleading sales or

10-13  financing practice.

10-14     2.  Refuse to deliver an order of a dealer within 60 days after

10-15  the order is received in writing unless the inability to deliver the

10-16  order is caused by shortage or curtailment of material, labor,

10-17  production capacity, transportation or utility services, or to any labor

10-18  or production difficulty, or to any cause beyond the reasonable

10-19  control of the [motor vehicle] manufacturer or distributor.

10-20     3.  Coerce, compel or otherwise require any dealer to pay over

10-21  or to repay any amount of money or other consideration which is in

10-22  substantiation of or repayment for any advertising, promotional

10-23  activity or scheme, or method of implementing the sale or lease of

10-24  [motor] vehicles.

10-25     4.  Demand or require, directly or indirectly, a dealer to pay any

10-26  amount of money which is projected or proposed for the

10-27  advertisement, display or promotion of any [motor] vehicle which is

10-28  being sold or leased pursuant to a franchise, unless the dealer has

10-29  agreed thereto in writing.

10-30     5.  Demand or require, directly or indirectly, a dealer to comply

10-31  with standards which exceed commonly accepted business practices

10-32  within the [automotive] vehicle industry relating to sales, leases or

10-33  service of [motor] vehicles.

10-34     6.  Based solely upon the results of a survey of a dealer’s

10-35  customers conducted by or on behalf of a [motor vehicle]

10-36  manufacturer which is intended or otherwise purports to measure the

10-37  performance of a dealer:

10-38     (a) Discriminate, directly or indirectly, against a dealer;

10-39     (b) Take any action to terminate a dealer’s franchise; or

10-40     (c) Refuse to consent to the designation of a successor, refuse to

10-41  honor a right of succession set forth in a franchise or refuse to

10-42  approve the transfer of a controlling interest in a dealership.

10-43  This subsection does not prohibit a [motor vehicle] manufacturer,

10-44  distributor, factory branch or representative thereof from conducting

10-45  a contest or other award program to recognize the performance of a

11-1  dealer based on reasonable criteria relating to sales, leases or service

11-2  of [motor] vehicles.

11-3      Sec. 22.  NRS 482.36423 is hereby amended to read as

11-4  follows:

11-5      482.36423  1.  Whenever it appears that a person has violated ,

11-6  [or] is violating or is threatening to violate any provision of NRS

11-7  482.36311 to 482.36425, inclusive, and sections 2 and 3 of this act,

11-8  any person aggrieved thereby may apply to the district court in the

11-9  county where the defendant resides, or in the county where the

11-10  violation or threat of violation occurs, for injunctive relief to restrain

11-11  the person from continuing the violation or threat of violation.

11-12     2.  In addition to any other judicial relief, any dealer or person

11-13  who assumes the operation of a franchise pursuant to NRS

11-14  482.36396 to 482.36414, inclusive, who is injured in his business or

11-15  property by reason of a violation of NRS 482.36311 to 482.36425,

11-16  inclusive, and sections 2 and 3 of this act may bring an action in

11-17  the district court in which the dealership is located, and may recover

11-18  three times the pecuniary loss sustained by him, and the cost of suit,

11-19  including a reasonable attorney’s fee. The amount of pecuniary loss

11-20  sustained by a dealer, pursuant to subsection 6 of NRS 482.3638, is

11-21  the fair market value of the franchised dealership at the time of

11-22  notification of termination, refusal to continue or unilateral

11-23  modification of a franchise.

11-24     3.  Any artificial person created and existing under the laws of

11-25  any other state, territory, foreign government or the government of

11-26  the United States, or any person residing outside the State, who

11-27  grants a franchise to any dealer in this state may be served with any

11-28  legal process in any action for injunctive relief or civil damages in

11-29  the following manner:

11-30     (a) By delivering a copy of the process to the Director; and

11-31     (b) By mailing to the last known address of the manufacturer or

11-32  distributor, by certified mail, return receipt requested, a copy of the

11-33  summons[,] and a copy of the complaint, together with copies of

11-34  any petition or order for injunctive relief.

11-35     4.  The defendant has 30 days, exclusive of the day of service,

11-36  within which to answer or plead.

11-37     5.  The method of service provided in this section is cumulative

11-38  and may be utilized with, after or independently of all other methods

11-39  of service.

11-40     Sec. 23.  NRS 482.36425 is hereby amended to read as

11-41  follows:

11-42     482.36425  1.  Any manufacturer or distributor who willfully

11-43  violates any provision of NRS 482.36311 to 482.36425, inclusive,

11-44  and sections 2 and 3 of this act is subject to a civil penalty of not

11-45  less than $50 nor more than $1,000 for each day of violation and for

11-46  each act of violation. All civil penalties recovered [shall] must be

11-47  paid to the State of Nevada.

11-48     2.  Whenever it appears that a manufacturer or distributor has

11-49  violated , [or] is violating or is threatening to violate any provision

11-50  of NRS 482.36311 to 482.36425, inclusive, and sections 2 and 3 of

11-51  this act, the Attorney General may institute a civil suit in any district

11-52  court of this state for injunctive relief to restrain the violation or

11-53  threat of violation, or if the violation or threat is willful, for the

11-54  assessment and recovery of the civil penalty, or both.

11-55     Sec. 24.  NRS 482.36331 is hereby repealed.

 

11-56  TEXT OF REPEALED SECTION

 

11-57     482.36331  “Manufacturer” defined. “Manufacturer” in-

11-58  cludes any person who assembles new motor vehicles.

 

11-59  H