• Requires automakers to provide the New Jersey Motor Vehicle Commission (NJMVC) with a list of all New Jersey-registered vehicles under recall for six (6) months or more (that have yet to be repaired) and, in cooperation with the NJMVC, to send notice to those registered vehicle owners with unresolved recalls. • Requires automakers to compensate their franchisees for specified costs associated with a “stop sale” or “do not drive” order. • Defines the dealers’ recall costs more clearly and requires automakers to compensate dealers 1.75% per month of the book value of any used vehicle subject to a stop-sale recall. • Clarifies provisions in existing law, which require an automaker to pay dealers a fair retail rate of reimbursement on parts and labor to repair vehicles under recall. • Protects auto retailers from being subject to financial or other penalties levied by an automaker in the event they bring a claim for reimbursement of recall costs. • Prohibits manufacturers from recovering their cost of compliance with state law and requires retail reimbursement to the dealer for parts and services provided for warranty and safety recalls. • Prohibits manufacturers from arbitrarily and unilaterally reducing the retail price of parts required for warranty and safety recall services immediately preceding or during a recall campaign to avoid paying dealers fair compensation for warranty and safety recall work. The amendments also address an issue that is at the heart of the complicated franchisor/franchisee relationship. Franchisees are often reluctant to challenge their franchisors, even when the franchisor violates the provisions of the Franchised Practices Act (and the dealerships’ rights), because litigation is too expensive or they fear retaliation. NJ CAR IS PREPARING LEGISLATION THAT WOULD ADDRESS SEVERAL OUTSTANDING ISSUES IMPACTING DEALERS. In these situations, dealers often turn to their advocates, like NJ CAR, to file legal challenges that individual dealers cannot file on their own. Unfortunately, two recent lawsuits brought by NJ CAR, on behalf of its Lincoln and Mazda dealers, were dismissed after a trial court found the statute doesn’t explicitly grant standing to sue for relief under the law to anyone other than an actual franchisee. The proposed amendment to the Franchise Practices Act would specifically grant standing to sue for a trade association that meets the U.S. Supreme Court criteria for associational standing. We focus on your energy strategy so yo focus on what matters most - your cust Create customized energy plans Achieve budget certainty Lock in low rates Natural Gas | Electricity pjagodzinski@spragueenergy.com Peter Jagodzinski | 732-440-0038 For over a decade, Sprague has been the exclusive energy partner for NJ CAR Sprague works with NJ CAR members to: Call Today Visit us online at spragueenergy.com/njcar continued from page 22 24 NEW JERSEY auto retailer
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