Pub. 15 2016-2017 Issue 4

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 17 new jersey auto retailer W W W . N J C A R . O R G suffered by dealerships as a result of these widespread recalls. Franchise Practices Act Revisions A-1744- Revises the law concerning the rights and responsibilities of motor vehicle franchisees and franchisors. This Bill sets forth NJ CAR’s proposals for strengthening the provisions of the Franchises Practices Act to provide greater protections to New Jersey’s franchised dealers against unfair and abusive acts and practices by auto manu- facturers. The most important provisions of this proposal attack tiered pricing, which allows manufacturers to choose winners and losers, and allows them to effectively terminate franchises by ensuring they will not be competitive. It also prohibits manufacturers from forcing their insurance, warranty, service or repair plans on dealers, or using any means to disfavor the sale of third-party plans, and requires manufacturers to give 30-days-notice of any charge back, and “stays” the charge back if the dealership chal- lenges it in court or by arbitration. This proposal has been a major goal for NJ CAR for several years, but it has been stalled for some time as a result of strong opposition by manufacturers and legislative politics. Dealer Licensing Proposals A-2791- “Used Motor Vehicle Licensing Act.” This proposal would clarify and revise the licensing system for “Used Motor Vehicle Dealers.” The most significant changes would affect wholesalers, who are completely un- regulated under current law, but would be required to be licensed under this proposal. However, it imposes no new licensing require- ments on licensed new motor vehicle dealers. NJ CAR believes the impact of this proposal would be neutral or positive for the industry, so it is not being opposed. Passage is uncer- tain. Patrick Cox, Esq. is NJ CAR’s Director of Legal & Regulatory Affairs. He can be reached at 609.883.5056, ext. 350 or via email at pcox@njcar.org .