Existing law prohibits a manufacturer, manufacturer branch, distributor, or distributor branch that is licensed under the Vehicle Code from engaging in certain conduct involving a dealer having a franchise for the sale of new vehicles or vehicle parts. A violation of the Vehicle Code is a crime.
For a dealer and manufacturer agreement involving recreational vehicles, this bill would additionally prohibit, upon mutual agreement of the parties to enter into a dealer agreement, a licensed manufacturer, manufacturer branch, distributor, or distributor branch from failing or refusing to provide a written dealer agreement that complies with statutory franchise requirements. The agreement would be required to include provisions regarding dealership transfer and termination, sales territory, and reimbursement for dealer
costs for work related to the manufacturer’s warranty for each line-make of recreational vehicle covered by the agreement.
Because a violation of this prohibition would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.