(B) For sale as a used motor vehicle as a consumer trade-in, incident to the purchase of a new motor vehicle from the dealer after the stop-sale order or do-not-drive order was issues; or (C) For sale that is a line make of a used motor vehicle the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs. (c) (1) It is a violation of this section for a manufacturer to reduce the amount of compensation otherwise owed to a new motor vehicle dealer because the new motor vehicle dealer has submitted a claim for reimbursement under this section, including without limitation compensation owed through: (A) A chargeback; (B) Removal of the dealer from an incentive program; or (C) A reduction in the amount owed under an incentive program. (2) However, subdivision (c) (1) of this section does not apply to a reduction in the amount of compensation owed to a new motor vehicle dealer by a manufacturer if the reduction is applied uniformly to all new motor vehicle dealers of the same line make in the state. (d) A reimbursement claim made by a new motor vehicle dealer for a recall remedy or repair or for compensation when no part or repair is reasonably available and the motor vehicle is subject to a stop-sale order or do-not-drive order. (1) Is subject to the same limitations and requirements as a warranty reimbursement claim made under § 23-112-313; or (2) May be compensated to a franchised dealer by a manufacturer under a national recall compensation program if the compensation under the program is equal to or greater than the compensation under subsection (a) of this section or the manufacturer and dealer otherwise agree to the amount of compensation. (e) A manufacturer may direct the manner and method in which a dealer demonstrates the inventory status of an affected used motor vehicle to determine eligibility for compensation under this section if the manner and method are not unduly burdensome and do not require that the dealer provide information that may be unduly burdensome to obtain. (f) This section does not require that a manufacturer provide total compensation to a dealer that exceeds the total average trade-in value of the used motor vehicle. (g) If a recall remedy for a used motor vehicle is available under federal law or federal regulation, a dealer may choose to be compensated under the federal statute or under this section but may not combine the recall remedies. (h) The value of a used motor vehicle shall be the average trade-in value for used motor vehicles as indicated in an independent third-party guide for the year, make, and model of the affected used motor vehicle. History. Acts 2019, No. 924, §4. SUBCHAPTER 4. UNLAWFUL PRACTICES. SECTIONS. 23-112-401. [Repealed. Penalty.] 23-112-402. Dealer and Salesperson. 23-112-403. Manufacturers, distributors, second-stage manufacturers, importers, or converters. 23-112-304. Issuance of license-Change of location-Change of business or of location-Change of business or corporate name, structure, or DBA name-Dealers, manufacturers, distributors, etc. 23-112-404. Motor Vehicle Lessors. 23-112-405. [Repealed. Auto Auctions.] 23-112-406. Acting as Broker. 23-112-407. [Repealed.] 23-112-401. [Repealed. Penalty.] This section, concerning penalties, was repealed by Acts 2001, No. 1053, §14. The section was derived from Acts 1975, No. 388, § 8; 1977, No. 838, § 2; A.S.A. 1947, § 75-2308. 23-112-402. Dealer and salesperson. It shall be unlawful for a motor vehicle dealer or a motor vehicle salesperson: (1) (A) To require a purchaser of a motor vehicle, as a condition of sale and delivery thereof, to also purchase special features, appliances, equipment, parts, or accessories not desired or requested by the purchaser. (B) However, this prohibition under subdivision (1)(A) of this section does not apply as to special features, appliances, equipment, parts, or accessories which are already installed on the car when received by the dealer; (2) To represent and sell as a new motor vehicle any motor vehicle that is a used motor vehicle; or (3) To resort to or use any false or misleading advertisement in connection with his or her business as a motor vehicle dealer or motor vehicle salesperson. History. Acts 1975, No. 388, § 5; A.S.A. 1947, § 75-2305; Acts 2001, No. 1053, § 15; 2021, No. 1077, § 7. 23-112-403. Manufacturers, distributors, second-stage manufacturers, importers or converters. (a) It shall be unlawful: (1) For a manufacturer, distributor, second-stage manufacturer, importer, converter, distributor branch or division, or factory branch or division, or an officer, agent, or other representative thereof, to coerce or attempt to coerce any motor vehicle dealer: (A) To order or accept delivery of any motor vehicles, appliances, equipment, parts, or accessories therefore or any other commodities which shall not have been voluntarily ordered by the motor vehicle dealer; (B) To order or accept delivery of any motor vehicle with special features, appliances, accessories, or equipment not included in the list price of the motor vehicle as publicly advertised by the manufacturer thereof; (C) To order for any person any parts, accessories, equipment, machinery, tools, appliances, or any commodity whatsoever; (D) To contribute or pay money or anything of value into any cooperative or other advertising program or fund; or (E) To file for or to use a legal or “d/b/a” name or identification other than a name of choice by the dealer; (2) For a manufacturer, distributor, distributor branch or division, or factory branch or division, or an officer, agent, or other representative thereof: (A) (i) To fail or refuse to: (a) Deliver, in reasonable quantities and within a reasonable time after receipt of a dealer’s order to any licensed motor vehicle dealer having a franchise or contractual arrangement for the retail sale of new motor vehicles sold or distributed by the manufacturer, distributor, distributor branch or division, or factory branch or division, any motor vehicles that are covered by the franchise or contract specifically publicly advertised by the manufacturer, distributor, distributor branch or division, or factory branch or division to be available for immediate delivery; (b) Make available to each motor vehicle dealer an adequate supply of motor vehicles by series, product line, and model in a fair, reasonable, and equitable manner subject to subdivision (a)(2)(L) of this section; (c) Apply fair, reasonable, and equitable performance standards that take into consideration the number of motor vehicles allocated to a motor vehicle dealer when measuring the motor vehicle dealer’s sales or service performance under the terms of the franchise agreement; (d) Apply its allocation process equitably and not discriminate among motor vehicle dealers; and (e) Disclose in writing upon request by a motor vehicle dealer the allocation process or system used by the manufacturer, distributor, distributor branch or division, or factory branch or division. (ii) However, the failure to deliver any motor vehicle shall not be considered a violation of this chapter if the failure is due to forces of nature, work stoppages or delays due to strikes or labor difficulties, freight, embargoes, or other causes over which the manufacturer or distributor, or any agent thereof, has no control; (B) (i) To engage in any of the following: (a) To coerce or attempt to coerce any motor vehicle dealer to enter into any agreement with the manufacturer, Arkansas Automobile Dealers Association | 35 ARKANSAS MOTOR VEHICLE COMMISSION ACT
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