Clarifying the relationship between manufacturers and new motor vehicle dealers by providing tools to resolve disparities including expanding compensation for recalled vehicles.
Summary
Requires motor vehicle manufacturers (manufacturers) to compensate their franchised new motor vehicle dealers (dealers) for all labor and parts required to perform recall repairs.
Requires manufacturers to compensate their dealers if parts or a remedy are not reasonably available to perform a recall service or repair on a used vehicle held for sale by the dealer in certain circumstances, at a rate tied to the average trade-in value of the vehicle.
Establishes requirements and procedures for submitting reimbursement claims to manufacturers and for when a claim must be paid.
Limits how manufacturers may modify their franchise agreements with dealers, and when a dealer's designated area of primary responsibility may include out-of-state areas.
Establishes a process for the Department of Licensing (DOL) to handle an alleged violation of the franchise law as an adjudicative proceeding, and gives a corporation or association of dealers standing to represent itself or individual dealers before the DOL and in court.
Modifies the relief that a dealer and a corporation or association of dealers may seek in court, and specifies that for a willful violation of the franchise law a court may increase an award by up to three times the actual damages sustained.
From the Engrossed Substitute House Bill Report (ESSB 6137), written by the Legislature's nonpartisan staff. Read the full report ↗
AN ACT Relating to clarifying the relationship between manufacturers and new motor vehicle dealers by providing tools to resolve disparities including expanding compensation for recalled vehicles;