GA Motor Vehicle Franchise Practices Act classifications, standards or qualifications which directly relate to the prospective transferee’s business experience, moral character, and financial qualifications. A franchisor may not disapprove or withhold approval of a change or sale if the new management, owner, or transferee is an owner of a dealership in the State of Georgia which sells the same line-make motor vehicle as the dealership being transferred unless such management, owner, or transferee is not in substantial compliance with its existing franchise agreement relating to performance in the areas of customer satisfaction or sales or unless such management, owner, or transferee does not meet the franchisor’s prior written, reasonable, objective, and uniformly applied standards or qualifications relating to its financial qualifications or moral character. Where the franchisor rejects a proposed change or sale, the franchisor shall give written notice of his reasons to the new motor vehicle dealer within 60 days. If no such notice is given to the new motor vehicle dealer, the change or sale shall be deemed approved. 10-1-654. Applicability of part. Reserved. Part 5: Motor Vehicle Fair Practices 10-1-660. Short title. This part shall be known and may be cited as the ‘Motor Vehicle Fair Practices Act.’ 10-1-661. Franchisors prohibited from requiring or coercing dealers to take or refrain from taking certain acts. (a) For purposes of this Code section, the term “coerce” means to compel or attempt to compel by threat or use of force or to fail to act in good faith in performing or complying with any term or provision of a franchise or dealer agreement. (b) No franchisor shall require, attempt to require, coerce, or attempt to coerce any dealer in this state: (1) To order or accept delivery of any new motor vehicle, part, or accessory thereof, equipment, or any other commodity not required by law which shall not have been voluntarily ordered by the dealer, except that this paragraph does not affect any terms or provisions of a franchise requiring dealers to market a representative line of those motor vehicles which the franchisor is publicly advertising; (2) To order or accept delivery of any new motor vehicle with special features, accessories, or equipment not included in the list price of such new motor vehicle as publicly advertised by the franchisor; (3) To refrain from participation in the management of, investment in, or the acquisition of any other line of new motor vehicle or related products. However, this paragraph does not apply unless the dealer maintains a reasonable line of credit for each make or line of new motor vehicle, the dealer remains in compliance with any reasonable facilities requirements of the franchisor, the dealer provides acceptable sales performance, and no change is made in the principal management of the dealer; (4) To expand, construct, or significantly modify facilities without assurances that the franchisor will provide a reasonable supply of new motor vehicles within a reasonable time so as to justify such an expansion in light of the market and economic conditions; (5) To sell, assign, or transfer any retail installment sales contract obtained by such dealer in connection with the sale by such dealer in this state of new motor vehicles to a specified finance company or class of such companies or to any other specified persons; (6) To provide warranty or other services for the account of franchisor, except as provided in Part 3 of this article, the “Motor Vehicle Warranty Practices Act”; (7) To acquire any line make of motor vehicle or to give up, sell, or transfer any line make of motor vehicle which has been acquired in accordance with this article once such dealer has notified the franchisor that it does not desire to acquire, give up, sell, or transfer such line make or to retaliate or take any adverse action against a dealer based on such desire. (8) To construct, renovate or maintain exclusive facilities, personnel, or showroom area dedicated to a particular line make if the imposition of such a requirement would be unreasonable in light of the existing circumstances, including the franchisor’s reasonable business considerations, present economic and market conditions, and WWW.GADA.COM | 75
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