New legislation helps local auto dealers survive the auto industry collapse.

Like all states, NH has an Auto Dealer Bill of Rights (DBR) to protect local franchise auto dealers from unfair trade practices by their manufacturers.

After the auto industry’s recent implosion, which caused the closure of at least 14 auto dealers in NH, the Legislature decided it was time to update NH’s DBR.

SB-153 makes sweeping changes to the DBR to protect dealers in these turbulent economic times.

Among other changes, the Bill prohibits unfair contractual clauses by manufacturers, including forcing dealers to spend thousands to millions of dollars to obtain a new vehicle model, forcing dealers to order unwanted inventory just to obtain a popular vehicle model, forcing dealers into pre-dispute binding arbitration or into waiving jury trials, charging NH dealers different prices for the same vehicles or using incentive programs that result in a price difference.

The Bill also requires manufacturers to repurchase certain items, such as parts and vehicles, when the factory closes its doors or ends production of a line make, and not just when the dealer’s franchise is terminated as in the past.

For more information, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

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