LD 1294
pg. 3
Page 2 of 10 An Act To Amend the Motor Vehicle Franchise Law Page 4 of 10
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LR 1735
Item 1

 
reasonable line of credit for each franchise and the
franchisee remains in substantial compliance with
reasonable facilities requirements of the franchisor. The
reasonable facilities requirements may not include any
requirement that a franchisee establish or maintain
exclusive facilities, personnel or display space when the
requirements are unreasonable considering current economic
conditions and are not otherwise justified by reasonable
business considerations. The burden of proving that
current economic conditions or reasonable business
considerations justify exclusive facilities is on the
franchisor;

 
Sec. 7. 10 MRSA §1174, sub-§4, ¶E, as enacted by PL 1997, c. 521,
§22, is amended to read:

 
E. To fail to disclose in writing to a purchaser of a new
motor vehicle before entering into a sales contract that
the new motor vehicle has been damaged and repaired if the
dealer has knowledge of the damage or repair or and if the
damage calculated at the retail cost of repair to the new
motor vehicle exceeds 5% of the manufacturer's suggested
retail price, except that a new motor vehicle dealer is
not required to disclose to a purchaser that any glass,
bumpers, audio system, instrument panel, communication
system or tires were damaged at any time if the glass,
bumpers, audio system, instrument panel, communication
system or tires have been replaced with original or
comparable equipment.

 
Sec. 8. 10 MRSA §1174-C, sub-§1, ¶A, as amended by PL 1997, c. 521,
§23, is further amended to read:

 
A. A designated family member of a deceased or,
incapacitated or retiring new motor vehicle dealer, which
family member has been designated under the will of the
dealer or in writing to the manufacturer, distributor,
factory branch, factory representative or importer, may
succeed the dealer in the ownership or operation of the
dealership under the existing franchise or distribution
agreement if the designated family member gives the
manufacturer, distributor, factory branch, factory
representative or importer of new motor vehicles written
notice of the intention to succeed to the dealership
within 120 days of the dealer's death or, incapacity or
retirement and unless there exists good cause for refusal
to honor the succession on the part of the manufacturer,
factory branch, factory representative, distributor or
importer.

 
Sec. 9. 10 MRSA §1176, first ¶, as amended by PL 1995, c. 65, Pt. A,
§16 and affected by §153 and Pt. C, §15, is further amended to
read:


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