ARKANSAS MOTOR VEHICLE COMMISSION ACT dealer, proposed new motor vehicle dealer, or owner of an interest in the dealership facility to enter into a site control agreement or exclusive use agreement: (1) Awarding a franchise to a prospective new motor vehicle dealer; (2) Adding a line make or franchise to an existing motor vehicle dealer; (3) Renewing a franchise of an existing motor vehicle dealer; (4) Approving the relocation of an existing motor vehicle dealer’s facility; or (5) Approving the sale or transfer of the ownership of a franchise. (b) This subdivision does not apply to a site control agreement or an exclusive use agreement if the site control agreement or an exclusive use agreement: (1) Is voluntarily entered into by the motor vehicle dealer or the motor vehicle dealer’s lessor; (2) Clearly and conspicuously discloses that the site control agreement or an exclusive use agreement is voluntary; and (3) Provides for separate and valuable consideration to the motor vehicle dealer or motor vehicle dealer’s lessor. (iii) Any provision contained in any agreement that is inconsistent with this subchapter is voidable at the election of the affected motor vehicle dealer or owner of an interest in the dealership facility. (iv) Subdivisions (a)(2)(T)(i)-(iii) of this section do not apply to motor vehicle dealers, manufacturers, or distributors of motor homes; or (U) To do any of the following: (i) Fail to offer to all of its franchisees of the same line make any consumer rebates, dealer incentives, price or interest rate reduction, or finance terms that the franchisor offers or advertises; (ii) Offer rebates, cash incentives, or other promotional items for the sale of a vehicle by its franchisees unless the same rebate, cash incentive, or promotion is offered to all of its franchisees of the same line make, and any rebate, cash incentive or promotion that is based on the sale of an individual vehicle is not increased for meeting a performance standard; (iii) Unreasonably discriminate among its franchisees in any program that provides assistance to its franchisees, including Internet listings, sales leads, warranty policy adjustments, marketing programs, or dealer recognition programs; (iv) Fail to offer rebates, cash incentives, or other promotional incentive programs on a fair and equitable or proportionally equivalent basis to its franchisees of the same line make. (v) Require a motor vehicle dealer to improve the dealer’s facilities, including signs, or to replace factory required and approved facility improvements completed within the last ten (10) years in order to qualify for a new vehicle sales incentive program; (vi) Fail to allow a motor vehicle dealer to maintain and control the vehicle inventory and service provider for the motor vehicle dealer’s digital platforms; or (vii) (a) Exercise control over a motor vehicle dealer’s digital platforms without the motor vehicle dealer’s permission, including without limitation control over the: (1) Price paid by the motor vehicle dealer to utilize the digital platforms, except as provided in a marketing program in which the motor vehicle dealer participates or in a minimum advertised price policy; (2) Content exhibited on the digital platforms; and (3) Data feed that syndicates inventory to digital platforms. (b) This section does not prevent a manufacturer or distributor from requiring that a motor vehicle dealer ensure that the digital platforms and all information exhibited on or contained within the digital platforms do not: (1) Infringe upon or impair the manufacturer’s or distributor’s intellectual property rights, usage policies, or security requirements; and (2) Disclose the manufacturer or distributor’s confidential information. (c) This section does not: (1) Require a manufacturer’s or distributor to consider, evaluate, or include a digital platform or digital platform provider in the manufacturer’s or distributor’s list of approved digital platforms or digital providers; (2) Prohibit a manufacturer or distributor from establishing digital platform requirements under a voluntary program available to a motor vehicle dealer; or (3) Prohibit minimum advertised pricing; (viii) (a) When providing a new motor vehicle to a motor vehicle dealer for offer or sale to the public, fail to provide to the motor vehicle dealer a written disclosure that may be provided to a potential buyer of a new motor vehicle of each accessory or function of the new motor vehicle that may be initiated, updated, changed, or maintained by the manufacturer or distributor through over-the-air or remote means, and the charge to the new motor vehicle buyer at the time of the new motor vehicle sale for the initiation, update, change, or maintenance. (b) A manufacturer or distributor may comply with this subdivision (a)(2)(U)(viii) by notifying the motor vehicle dealer that the information contained in the written disclosure under subdivision (a)(2)(U)(viii)(a) of this section is available on a website or through other digital means; or (ix) Fail to provide a motor vehicle dealer the option to purchase, rather than lease, items related to a factory required and approved facility improvement other than signage that bears a trademark, trade name, or commercial symbol used or claimed by the manufacturer, distributor, distributor branch or division, or factory branch or division. (3) (A) For a manufacturer, distributor, distributor branch or division, or factory branch or division, or an officer, agent, or other representative thereof to own, operate, or control any motor vehicle dealer or to directly lease a motor vehicle at retail leasing In this state. (B) Subdivision (a)(3)(A) of this section does not prohibit: (i) The operation by a manufacturer of a motor vehicle dealer for a temporary period, not to exceed one (1) year, during the transition from one (1) owner or operator to another, provided that the commission may extend the one (1) year period if the transition is not complete; (ii) The ownership or control of a motor vehicle dealer by a manufacturer during a period in which the motor vehicle dealer is being sold under a bona fide contract or purchase option to the operator of the dealership; (iii) The ownership, operation, or control of a motor vehicle dealer by a manufacturer, if: (a) The manufacturer has been engaged in the retail sale of new motor vehicles at the location for a continuous period of five (5) years prior to January 1, 1999; and (b) The commission determines after a hearing on the matter at the request of any party that there is no prospective new motor vehicle dealer available to own and operate the franchise in a manner consistent with the public interest; or (iv) The ownership, operation, or control of a motor vehicle dealer by a manufacturer, If the manufacturer is: (a) A manufacturer of specialty vehicles, such as unassembled kits, and does not sell more than ten (10) assembled vehicles annually; or (b) A custom motorcycle builder and does not sell more than five (5) assembled motorcycles annually; or Arkansas Automobile Dealers Association | 39
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