(a) All franchise‑relatedform agreements, as defined in this subsection, offered to a motor vehicledealer in this State shall provide that all terms and conditions in theagreement inconsistent with any of the laws or rules of this State are of noforce and effect. For purposes of this section, the term "franchise‑relatedform agreements" means one or more contracts between a franchised motorvehicle dealer and a manufacturer, factory branch, distributor, or distributorbranch, including a written communication from a manufacturer or distributor inwhich a duty is imposed on the franchised motor vehicle dealer under which:
(1) The franchised motorvehicle dealer is granted the right to sell and service new motor vehiclesmanufactured or distributed by the manufacturer or distributor or only toservice motor vehicles under the contract and a manufacturer's warranty;
(2) The franchised motorvehicle dealer is a component of the manufacturer or distributor's distributionsystem as an independent business;
(3) The franchised motorvehicle dealer is substantially associated with the manufacturer ordistributor's trademark, trade name, and commercial symbol;
(4) The franchised motorvehicle dealer's business substantially relies on the manufacturer ordistributor for a continued supply of motor vehicles, parts, and accessories;or
(5) Any right, duty, orobligation granted or imposed by this Chapter is affected.
(b) Notwithstanding theterms of any franchise or agreement, it shall be unlawful for any manufacturer,factory branch, distributor, or distributor branch to offer to a dealer,revise, modify, or replace a franchise‑related form agreement, as definedabove in this section, which agreement, modification, or replacement mayadversely affect or alter the rights, obligations, or liability of a motorvehicle dealer or may adversely impair the sales, service obligations,investment, or profitability of any motor vehicle dealer located in this State,unless:
(1) The manufacturer,factory branch, distributor, or distributor branch provides prior writtennotice by registered or certified mail to each affected dealer, theCommissioner, and the North Carolina Automobile Dealers Association, Inc., ofthe modification or replacement in the form and within the time frame set forthwithin this section and in subsection (c) of this section; and
(2) If a protest isfiled under this section, the Commissioner approves the modification orreplacement.
(c) The notice requiredby subdivision (b)(1) of this section shall:
(1) Be given not laterthan the 60th day before the effective date of the modification or replacement;
(2) Contain on its firstpage a conspicuous statement that reads: "NOTICE TO DEALER: YOU MAY BEENTITLED TO FILE A PROTEST WITH THE COMMISSIONER OF THE NORTH CAROLINA DIVISIONOF MOTOR VEHICLES AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSEDINITIAL OFFERING, MODIFICATION, OR REPLACEMENT OF CERTAIN FRANCHISE‑RELATEDFORM AGREEMENTS UNDER THE TERMS OF THE MOTOR VEHICLE DEALERS AND MANUFACTURERSLICENSING LAW, IF YOU OPPOSE THIS ACTION"; and
(3) Contain a separateletter or statement that identifies all substantive modifications or revisionsand the principal reasons for each such modification or revision.
(d) A franchised dealermay file a protest with the Commissioner of the offering, modification, orreplacement pursuant to this section not later than the latter of:
(1) The 60th day afterthe date of the receipt of the notice; or
(2) The time specifiedin the notice.
(e) After a protest isfiled, the Commissioner shall determine whether the manufacturer, factorybranch, distributor, or distributor branch has established by a preponderanceof the evidence that there is good cause for the proposed offering, modification,or replacement. The prior franchise‑related form agreement, if any,continues in effect until the Commissioner resolves the protest.
(f) The Commissioneris authorized and directed to investigate and prevent violations of thissection, including inconsistencies of any franchise‑related formagreement with the provisions of this Article.
(g) Nothing containedin this section shall in any way limit a dealer's rights under any otherprovision of this Article or other applicable law. (1997‑319, s. 1; 2005‑409,s. 1.)
(a) All franchise‑relatedform agreements, as defined in this subsection, offered to a motor vehicledealer in this State shall provide that all terms and conditions in theagreement inconsistent with any of the laws or rules of this State are of noforce and effect. For purposes of this section, the term "franchise‑relatedform agreements" means one or more contracts between a franchised motorvehicle dealer and a manufacturer, factory branch, distributor, or distributorbranch, including a written communication from a manufacturer or distributor inwhich a duty is imposed on the franchised motor vehicle dealer under which:
(1) The franchised motorvehicle dealer is granted the right to sell and service new motor vehiclesmanufactured or distributed by the manufacturer or distributor or only toservice motor vehicles under the contract and a manufacturer's warranty;
(2) The franchised motorvehicle dealer is a component of the manufacturer or distributor's distributionsystem as an independent business;
(3) The franchised motorvehicle dealer is substantially associated with the manufacturer ordistributor's trademark, trade name, and commercial symbol;
(4) The franchised motorvehicle dealer's business substantially relies on the manufacturer ordistributor for a continued supply of motor vehicles, parts, and accessories;or
(5) Any right, duty, orobligation granted or imposed by this Chapter is affected.
(b) Notwithstanding theterms of any franchise or agreement, it shall be unlawful for any manufacturer,factory branch, distributor, or distributor branch to offer to a dealer,revise, modify, or replace a franchise‑related form agreement, as definedabove in this section, which agreement, modification, or replacement mayadversely affect or alter the rights, obligations, or liability of a motorvehicle dealer or may adversely impair the sales, service obligations,investment, or profitability of any motor vehicle dealer located in this State,unless:
(1) The manufacturer,factory branch, distributor, or distributor branch provides prior writtennotice by registered or certified mail to each affected dealer, theCommissioner, and the North Carolina Automobile Dealers Association, Inc., ofthe modification or replacement in the form and within the time frame set forthwithin this section and in subsection (c) of this section; and
(2) If a protest isfiled under this section, the Commissioner approves the modification orreplacement.
(c) The notice requiredby subdivision (b)(1) of this section shall:
(1) Be given not laterthan the 60th day before the effective date of the modification or replacement;
(2) Contain on its firstpage a conspicuous statement that reads: "NOTICE TO DEALER: YOU MAY BEENTITLED TO FILE A PROTEST WITH THE COMMISSIONER OF THE NORTH CAROLINA DIVISIONOF MOTOR VEHICLES AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSEDINITIAL OFFERING, MODIFICATION, OR REPLACEMENT OF CERTAIN FRANCHISE‑RELATEDFORM AGREEMENTS UNDER THE TERMS OF THE MOTOR VEHICLE DEALERS AND MANUFACTURERSLICENSING LAW, IF YOU OPPOSE THIS ACTION"; and
(3) Contain a separateletter or statement that identifies all substantive modifications or revisionsand the principal reasons for each such modification or revision.
(d) A franchised dealermay file a protest with the Commissioner of the offering, modification, orreplacement pursuant to this section not later than the latter of:
(1) The 60th day afterthe date of the receipt of the notice; or
(2) The time specifiedin the notice.
(e) After a protest isfiled, the Commissioner shall determine whether the manufacturer, factorybranch, distributor, or distributor branch has established by a preponderanceof the evidence that there is good cause for the proposed offering, modification,or replacement. The prior franchise‑related form agreement, if any,continues in effect until the Commissioner resolves the protest.
(f) The Commissioneris authorized and directed to investigate and prevent violations of thissection, including inconsistencies of any franchise‑related formagreement with the provisions of this Article.
(g) Nothing containedin this section shall in any way limit a dealer's rights under any otherprovision of this Article or other applicable law. (1997‑319, s. 1; 2005‑409,s. 1.)
(a) All franchise‑relatedform agreements, as defined in this subsection, offered to a motor vehicledealer in this State shall provide that all terms and conditions in theagreement inconsistent with any of the laws or rules of this State are of noforce and effect. For purposes of this section, the term "franchise‑relatedform agreements" means one or more contracts between a franchised motorvehicle dealer and a manufacturer, factory branch, distributor, or distributorbranch, including a written communication from a manufacturer or distributor inwhich a duty is imposed on the franchised motor vehicle dealer under which:
(1) The franchised motorvehicle dealer is granted the right to sell and service new motor vehiclesmanufactured or distributed by the manufacturer or distributor or only toservice motor vehicles under the contract and a manufacturer's warranty;
(2) The franchised motorvehicle dealer is a component of the manufacturer or distributor's distributionsystem as an independent business;
(3) The franchised motorvehicle dealer is substantially associated with the manufacturer ordistributor's trademark, trade name, and commercial symbol;
(4) The franchised motorvehicle dealer's business substantially relies on the manufacturer ordistributor for a continued supply of motor vehicles, parts, and accessories;or
(5) Any right, duty, orobligation granted or imposed by this Chapter is affected.
(b) Notwithstanding theterms of any franchise or agreement, it shall be unlawful for any manufacturer,factory branch, distributor, or distributor branch to offer to a dealer,revise, modify, or replace a franchise‑related form agreement, as definedabove in this section, which agreement, modification, or replacement mayadversely affect or alter the rights, obligations, or liability of a motorvehicle dealer or may adversely impair the sales, service obligations,investment, or profitability of any motor vehicle dealer located in this State,unless:
(1) The manufacturer,factory branch, distributor, or distributor branch provides prior writtennotice by registered or certified mail to each affected dealer, theCommissioner, and the North Carolina Automobile Dealers Association, Inc., ofthe modification or replacement in the form and within the time frame set forthwithin this section and in subsection (c) of this section; and
(2) If a protest isfiled under this section, the Commissioner approves the modification orreplacement.
(c) The notice requiredby subdivision (b)(1) of this section shall:
(1) Be given not laterthan the 60th day before the effective date of the modification or replacement;
(2) Contain on its firstpage a conspicuous statement that reads: "NOTICE TO DEALER: YOU MAY BEENTITLED TO FILE A PROTEST WITH THE COMMISSIONER OF THE NORTH CAROLINA DIVISIONOF MOTOR VEHICLES AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSEDINITIAL OFFERING, MODIFICATION, OR REPLACEMENT OF CERTAIN FRANCHISE‑RELATEDFORM AGREEMENTS UNDER THE TERMS OF THE MOTOR VEHICLE DEALERS AND MANUFACTURERSLICENSING LAW, IF YOU OPPOSE THIS ACTION"; and
(3) Contain a separateletter or statement that identifies all substantive modifications or revisionsand the principal reasons for each such modification or revision.
(d) A franchised dealermay file a protest with the Commissioner of the offering, modification, orreplacement pursuant to this section not later than the latter of:
(1) The 60th day afterthe date of the receipt of the notice; or
(2) The time specifiedin the notice.
(e) After a protest isfiled, the Commissioner shall determine whether the manufacturer, factorybranch, distributor, or distributor branch has established by a preponderanceof the evidence that there is good cause for the proposed offering, modification,or replacement. The prior franchise‑related form agreement, if any,continues in effect until the Commissioner resolves the protest.
(f) The Commissioneris authorized and directed to investigate and prevent violations of thissection, including inconsistencies of any franchise‑related formagreement with the provisions of this Article.
(g) Nothing containedin this section shall in any way limit a dealer's rights under any otherprovision of this Article or other applicable law. (1997‑319, s. 1; 2005‑409,s. 1.)
