ARKANSAS MOTOR VEHICLE COMMISSION ACT a bona fide contract for the line make covering the new motor vehicle or as may otherwise be provided in subdivision (a)(3) of this section. (ii) This subdivision (a)(2)(M) does not apply to manufacturer sales of new motor vehicles to the federal government, charitable organizations, or employees of the manufacturer; (N) To prohibit or require a dealer to enter into a franchise or sales agreement with third parties, regardless of the location of the dealership or proposed dealership; (O) (i) To require, coerce, or attempt to coerce any franchisee in this state to refrain from or to terminate, cancel, or refuse to continue any franchise based upon participation by the franchisee in the management of, investment in, or the acquisition of a franchise for the sale of any other line of new motor vehicle or related products in the same or separate facilities as those of the franchiser. (ii) This subdivision (a)(2)(O) does not apply unless: (a) The franchisee maintains a reasonable line of credit for each make or line of new motor vehicle; (b) The franchisee remains in compliance with the franchise and any reasonable facilities requirement of the franchiser; and (c) No change is made in the principal management of the franchisee. (iii) The reasonable facilities requirement shall not include any requirement that the franchisee establish or maintain exclusive facilities, personnel, or display space when such requirements would not otherwise be justified by reasonable business considerations. (iv) (a) Before the addition of a line make to the dealership facilities, the franchisee must first request consent of the franchiser, if required by the franchise agreement. (b) Any decision of the franchiser with regard to dualing of two (2) or more franchises shall be granted or denied within sixty (60) days after a written request from the new motor vehicle dealer. The franchiser’s failure to respond timely to a dualing request shall be deemed to be approval of the franchisee’s request; (P) (i) To fail to continue in full force and operation a motor vehicle dealer franchise agreement, notwithstanding a change, in whole or in part, of an established plan or system of distribution or ownership of the manufacturer of the motor vehicles offered for sale under the franchise agreement. (ii) The appointment of a new importer or distributor for motor vehicles offered for sale under a franchise agreement described in subdivision (a)(2)(P)(i) of this section shall be deemed to be a change of an established plan or system of distribution; (Q) (i) (a) Unless the manufacturer’s, distributor’s, secondstage manufacturer’s, importer’s, converter’s, manufacturer’s branch or division, or distributor’s branch or division requirements are reasonable and justifiable in light of the current and reasonably foreseeable projections of economic conditions, financial expectations, and the motor vehicle dealer’s market and notwithstanding the terms of a franchise agreement or sales and service agreement, to require, coerce, or attempt to coerce any new motor vehicle dealer by program, policy, standard, or otherwise to: (1) Change location of the dealership; (2) Make any substantial changes, alterations, or remodeling to a motor vehicle dealer’s sales or service facilities; or (3) Replace a motor vehicle dealer’s sales or service facilities. (b) A manufacturer, distributor, second-stage manufacturer, importer, converter, manufacturer branch or division, or distributor branch or division shall have the burden of proving that changes, alterations, remodeling, or replacement to a motor vehicle dealer’s sales or service facilities are reasonable and justifiable under this subchapter. (ii) (a) However, a manufacturer, distributor, second-stage manufacturer, importer, convertor, manufacturer branch or division, or distributor branch or division, consistent with its allocation obligations at law and to its other same line make motor vehicle dealers, may provide to a motor vehicle dealer a commitment to supply additional vehicles or provide a loan or grant of money as an inducement for the motor vehicle dealer to expand, improve, remodel, alter, or renovate its facilities if the provisions of the commitment are contained in a writing voluntarily agreed to by the dealer and are made available, on substantially similar terms, to any of the licensee’s other same line make dealers who voluntarily agree to make a substantially similar facility expansion, improvement, remodeling, alteration, or renovation. (b) Subdivisions (a)(2)(Q)(i) and (ii)(a) of this section do not require a manufacturer, distributor, second-stage manufacturer, importer, convertor, manufacturer branch or division, or distributor branch or division to provide financial support for or contribution to the purchase sale of the assets of or equity in a motor vehicle dealer or a relocation of a motor vehicle dealer because such support has been provided to other purchases, sales, or relocations. (c) A manufacturer, distributor, second-stage manufacturer, importer, convertor, manufacturer branch or division, or distributor branch or division shall not take or threaten to take any action that is unfair or adverse to a dealer who does not enter into an agreement pursuant to subdivisions (a)(2)(Q)(i) and (ii)(a) of this section. (d) This subdivision does not affect any contract between a licensee and any of its dealers regarding relocation, expansion, improvement, remodeling, renovation or alteration which exists on July 27, 2011. (iii) Subdivisions (a)(2)(Q)(i) and (ii) of this section do not apply to motor vehicle dealers, manufacturers, or distributors of motor homes; (R) To unreasonably withhold approval for a new motor vehicle dealer to purchase goods and services of substantially similar quality, design, and functionality related to facility changes, alterations, remodels, equipment, or digital platforms that do not contain or utilize a manufacturer’s or distributor’s Intellectual property or proprietary design from vendors the motor vehicle dealer chooses. (S) To require as a prerequisite to receiving a model or a series of vehicles a motor vehicle dealer to: (i) Pay an extra fee or remodel, renovate, or recondition the motor vehicle dealer’s existing facilities unless justified by the technological requirements for the sale or service of a vehicle; (ii) Purchase unreasonable advertising displays, training, tools, or other materials; (iii) Establish exclusive facilities; (iv) Establish dedicated personnel; (v) Utilize certain digital platforms; or (vi) Enroll in a service loaner or demonstration program. (T) (i) (a) To use any written instrument, agreement, or waiver, to attempt to nullify or modify any provision of this chapter or prevent a new motor vehicle dealer from bringing an action in a particular forum otherwise available under law. (b) An instrument contrary to this subdivision (a)(2)(T) (i) is void. (c) However, this subdivision shall not apply to: (1) Voluntary agreements in which separate and valuable consideration has been offered and accepted; or (2) Settlement agreements entered into as a result of a dispute. (ii) (a) Except as provided in subdivision (a)(2)(Q)(ii)(b) of this section, a manufacturer, distributor, or factory branch shall not directly or indirectly condition any of the following on the willingness of a motor vehicle 38 | 2024 Membership Directory and Buyer’s Guide
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