LD 1294
pg. 4
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LR 1735
Item 1

 
Sec. 7. 10 MRSA §1174, sub-§3, ¶M, as amended by PL 1997, c. 521, §14, is
further amended to read:

 
M. To require, coerce or attempt to coerce a franchisee to
refrain from participation in the management of, investment
in or the acquisition of any other line of new motor vehicle
or related products as long as the franchisee maintains a
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. 8. 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. 9. 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


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