ARKANSAS MOTOR VEHICLE COMMISSION ACT (4) (A) For a manufacturer to unfairly compete with a motor vehicle dealer of the same line make, operating under a franchise, in the relevant market area. (B) “Unfairly compete”, as used in this section, includes, but is not limited to: (i) Internet solicitations; and (ii) Preferential treatment of manufacturer-operated dealerships in the supply of inventory, both as to quantity and availability of the latest models of that line make, supply of parts and payments for warranty and recall claims. (C) Ownership, operation, or control of a new motor vehicle dealer by a manufacturer under the conditions set forth in subdivisions (a)(3)(A)(i)-(iv) of this section shall not constitute a violation of this subdivision (a)(4). (5) (A) To unreasonably reduce a motor vehicle dealer’s area of sales effectiveness, trade area or similar designation without giving a notice of at least thirty (30) days of the proposed reduction. (B) The change shall not take effect if the dealer commences an administrative action to determine whether there is good cause for the change within the thirty-day notice period. (C) The burden of proof in an action under this subdivision (a) (5) shall be on the manufacturer, distributor, second-stage manufacturer, importer, converter, manufacturer branch or division, or distributor branch or division to prove that good cause exists to change the motor vehicle dealer’s area of sales effectiveness, trade area or similar designation. (b) (1) Notwithstanding the terms of any franchise except a settlement agreement voluntarily entered into, it shall be a violation for a motor vehicle franchiser to require a motor vehicle franchisee to agree to a term or condition in any franchise as a condition of the offer, grant, or renewal of the franchise or the approval of the sale, acquisition, or transfer of the assets of a new motor vehicle dealer, which: (A) Requires the motor vehicle franchisee to waive trial by jury in actions involving the motor vehicle franchiser; (B) Specifies the jurisdictions, venues, or tribunal in which disputes arising with respect to the franchise, lease, or agreement shall or shall not be submitted for resolution, or otherwise prohibits a motor vehicle franchisee from bringing an action in a particular forum otherwise available under federal or state law; (C) Requires a new motor vehicle dealer to pay the attorney’s fees of a manufacturer, importer, second-stage manufacturer, converter, or distributor; (D) Requires the motor vehicle franchisee to waive any remedy or defense available to the franchisee or other provision protecting the interests of the franchisee under this chapter; or (E) (i) Requires that disputes between the motor vehicle franchiser and motor vehicle franchisee be submitted to binding arbitration or to any other binding alternative dispute resolution procedure provided by the franchiser. (ii) However, any franchise, lease, or agreement may authorize the submission of a dispute to arbitration or to binding alternative dispute resolution if the motor vehicle franchiser and motor vehicle franchisee voluntarily agree to submit the dispute to binding arbitration or binding alternative dispute resolution after the dispute arises. (iii) If the franchiser and franchisee agree to binding arbitration, the arbitrator shall apply the provisions of this chapter in resolving the pertinent controversy and shall provide the parties to a contract with a written explanation of the factual and legal basis for the award. Either party may appeal to the commission a decision of an arbitrator on the ground that the arbitrator failed to apply this chapter. (2) For the purposes of this section, it shall be presumed that a motor vehicle franchisee has been required to agree to a term or condition in violation of this section as a condition of the offer, grant, or renewal of a franchise or of any lease or agreement ancillary or collateral to a franchise, if the motor vehicle franchisee, at the time of the offer, grant, or renewal of the franchise, lease, or agreement or the approval of the sale, acquisition, or transfer of the assets of a new motor vehicle dealer, is not offered the option of an identical franchise, lease, or agreement without the terms or conditions prescribed by this section. (c) Concerning any sale of a motor vehicle or vehicles to the State of Arkansas or to the several counties or municipalities thereof or to any other political subdivision thereof, no manufacturer or distributor shall offer any discounts, refunds, or any other similar type inducements to any dealer without making the same offers to all other of its dealers within the state. If the inducements are made, the manufacturer or distributor shall give simultaneous notice thereof to all of its dealers within the state. History. Acts 1975, No. 388, § 5; 1985, No. 1032, § 3; 1985, No. 1058, § 3; A.S.A. 1947, § 75-2305; Acts 1987, No. 663, § 1; 1989, No. 65, §§ 4, 5; 1991, No. 411, § 4; 1991, No. 730, § 1; 1997, No. 1154, § 13; 1999, No. 1042, § 9; 2001, No. 1053, § 16; 2007, No. 746, §§ 3, 4; 2009, No. 756, §§ 13-15; 2011, No. 800, § 1; 2011, No. 1005, §§ 10-16; 2013, No. 561, § 6; 2013, No. 1043 §§ 6-8; 2013, No. 1133 §§ 9, 10; 2015, No. 1055, § 7; 2019, No. 924, §§ 5-7; 2019, No. 391, § 15; 2021, No. 1077 §§ 8-12. 23-112-404. Motor Vehicle Lessors. It is unlawful for a motor vehicle lessor or any agent, employee, or representative thereof: (1) To represent and to offer for sale or to sell as a new motor vehicle a motor vehicle that has been used or was intended to be used and operated for leasing or rental purposes or which is otherwise a used motor vehicle; (2) To resort to, use, or employ any false, fraudulent, deceptive, or misleading advertising or representations in connection with the business of leasing or renting motor vehicles; or (3) To sell or offer to sell a motor vehicle from an unlicensed location. History. Acts 1975, No. 388, § 5; 1985, No. 1032, § 3; 1985, No. 1058, § 3; A.S.A. 1947, § 75-2305; Act 2009, No. 756, § 16. 23-112-405. [Repealed – Auto Auctions.] 23-112-406. Acting as a broker. (a) Notwithstanding any other statute, a person may not act as, offer to act as, or hold himself or herself out to be a broker of new motor vehicles. (b) (1) To effectuate this chapter, “arranges or offers to arrange a transaction” means soliciting or referring buyers for new motor vehicles for a fee, commission, or other valuable consideration. (2) “Arranges or offers to arrange a transaction” does not include advertising so long as the person’s business primarily includes the business of broadcasting, printing, publishing, or advertising for others in their own names. (c) Brokering New Motor Vehicles. (1) A buyer referral service, program, plan, club, or any other entity that accepts fees for arranging a transaction involving the sale of a new motor vehicle is a broker. The payment of a fee to such entity is aiding and abetting brokering. However, any service, plan, program, club, or other entity that forwards referrals to dealerships may lawfully operate if the following conditions are met: (A) There are no exclusive market areas offered to dealers by the program and all dealers are allowed to participate on equal terms; (B) (i) Participation by dealers in the program is not restricted by conditions such as limiting the number of franchise lines or discrimination by size of dealership or location. (ii) Total number of participants in the program may be restricted if the program is offered to all dealers at the same time with no regard to the franchise; (C) All participants pay the same fee for participation in the program and that shall be a weekly, monthly, or annual fee, regardless of the size, location, or line make of the dealership; (D) A person is not to be charged a fee on a per referral basis or any other basis that could be considered a transaction-related fee; (E) The program does not set or suggest to the dealer or customer any price of vehicles or trade-ins; and (F) The program does not advertise or promote its plan in the manner that implies that the buyer, as a customer of that program, receives a special discounted price that cannot be obtained unless the customer is referred through that program. (2) All programs must comply with Rule 3 of the Arkansas Motor Vehicle Commission Rules. (d) The provisions of this section do not apply to any person or entity which is exempt from this chapter. History. Acts 1975, No. 388, § 10; 1985, No. 1032, § 6; 1985, No. 1058, § 6 A.S.A. 1947,§ 75-2310; Acts 2001, No. 1053, § 17; 2009, No. 756, § 17. 23-112-407. [Repealed.] 40 | 2024 Membership Directory and Buyer’s Guide
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