State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter60 > 60-1437

60-1437. Manufacturer or distributor; prohibitedacts with respect to new motor vehicles.In addition to therestrictions imposed by section 60-1436, a manufacturer or distributor shallnot:(1) Fail to deliver new motor vehicles or new motor vehicle parts oraccessories within a reasonable time and in reasonable quantities relativeto the new motor vehicle dealer's market area and facilities, unless the failureis caused by acts or occurrences beyond the control of the manufacturer ordistributor or unless the failure results from an order by the new motor vehicledealer in excess of quantities reasonably and fairly allocated by the manufactureror distributor;(2) Refuse to disclose to a new motor vehicle dealer the method andmanner of distribution of new motor vehicles by the manufacturer or distributor;(3) Refuse to disclose to a new motor vehicle dealer the total numberof new motor vehicles of a given model which the manufacturer or distributorhas sold during the current model year within the dealer's marketing district,zone, or region, whichever geographical area is the smallest;(4) Increase the price of any new motor vehicle which the new motorvehicle dealer had ordered and delivered to the same retail consumer for whomthe vehicle was ordered, if the order was made prior to the dealer's receiptof the written official price increase notification. A sales contract signedby a private retail consumer and binding on the dealer shall constitute evidenceof such order. In the event of manufacturer or distributor price reductionor cash rebate, the amount of any reduction or rebate received by a dealershall be passed on to the private retail consumer by the dealer. Any pricereduction in excess of five dollars shall apply to all vehicles in the dealer'sinventory which were subject to the price reduction. A price difference applicableto a new model or series of motor vehicles at the time of the introductionof the new model or series shall not be considered a price increase or pricedecrease. This subdivision shall not apply to price changes caused by thefollowing:(a) The addition to a motor vehicle of required or optional equipmentpursuant to state or federal law;(b) In the case of foreign-made vehicles or components, revaluationof the United States dollar; or(c) Any increase in transportation charges due to an increase in ratescharged by a common carrier or other transporter;(5) Fail or refuse to sell or offer to sell to all franchised new motorvehicle dealers in a line-make every new motor vehicle sold or offered forsale to any franchised new motor vehicle dealer of the same line-make. However,the failure to deliver any such new motor vehicle shall not be considereda violation of this section if the failure is due to a lack of manufacturingcapacity or to a strike or labor difficulty, a shortage of materials, a freightembargo, or any other cause over which the franchisor has no control. A manufactureror distributor shall not require that any of its new motor vehicle dealerslocated in this state pay any extra fee, purchase unreasonable or unnecessaryquantities of advertising displays or other materials, or remodel, renovate,or recondition the new motor vehicle dealer's existing facilities in orderto receive any particular model or series of vehicles manufactured or distributedby the manufacturer for which the dealers have a valid franchise. Notwithstandingthe provisions of this subdivision, nothing contained in this section shallbe deemed to prohibit or prevent a manufacturer from requiring that its franchiseddealers located in this state purchase special tools or equipment, stock reasonablequantities of certain parts, or participate in training programs which arereasonably necessary for those dealers to sell or service any model or seriesof new motor vehicles. This subdivision shall not apply to manufacturers ofrecreational vehicles;(6) Fail to offer dealersof a specific line-make a new franchise agreement containing substantiallysimilar terms and conditions for sales of the line-make if the ownership ofthe manufacturer or distributor changes or there is a change in the plan orsystem of distribution;(7)Take an adverse action against a dealer because the dealer sells or leasesa motor vehicle that is later exported to a location outside the United States.A franchise provision that allows a manufacturer or distributor to take adverseaction against a dealer because the dealer sells or leases a motor vehiclethat is later exported to a location outside the United States is enforceableonly if, at the time of the original sale or lease, the dealer knew or reasonablyshould have known that the motor vehicle would be exported to a location outsidethe United States. A dealer is presumed to have no knowledge that a motorvehicle the dealer sells or leases will be exported to a location outsidethe United States if, under the laws of a state of the United States (a) themotor vehicle is titled, (b) the motor vehicle is registered, and (c) applicablestate and local taxes are paid for the motor vehicle. Such presumption maybe rebutted by direct, clear, and convincing evidence that the dealer knewor reasonably should have known at the time of the original sale or leasethat the motor vehicle would be exported to a location outside the UnitedStates. Except as otherwise permitted by subdivision (7) of this section,a franchise provision that allows a manufacturer or distributor to take adverseaction against a dealer because the dealer sells or leases a motor vehiclethat is later exported to a location outside the United States is void andunenforceable;(8)Discriminate against a dealer holding a franchise for a line-make of the manufactureror distributor in favor of other dealers of the same line-make in this stateby:(a)Selling or offering to sell a new motor vehicle to a dealer at a lower actualprice, including the price for vehicle transportation, than the actual priceat which the same model similarly equipped is offered to or is available toanother dealer in this state during a similar time period; or(b) Using a promotionalprogram or device or an incentive, payment, or other benefit, whether paidat the time of the sale of the new motor vehicle to the dealer or later, thatresults in the sale or offer to sell a new motor vehicle to a dealer at alower price, including the price for vehicle transportation, than the priceat which the same model similarly equipped is offered or is available to anotherdealer in this state during a similar time period. This subdivision shallnot prohibit a promotional or incentive program that is functionally availableto competing dealers of the same line-make in this state on substantiallycomparable terms; or(9)Make any express or implied statement or representation directly or indirectlythat the dealer is under any obligation whatsoever to offer to sell or sellany extended service contract or extended maintenance plan offered, sold,backed by, or sponsored by the manufacturer or distributor or to sell, assign,or transfer any of the dealer's retail sales contracts or leases in this stateon motor vehicles manufactured or sold by the manufacturer or distributorto a finance company or class of finance companies, leasing company or classof leasing companies, or other specified person, because of any relationshipor affiliation between the manufacturer or distributor and the finance companyor companies, leasing company or leasing companies, or the specified personor persons.Anysuch statements, threats, promises, acts, contracts, or offers of contracts,when their effect may be to lessen or eliminate competition or tend to createa monopoly, are declared unfair trade practices and unfair methods of competitionand are prohibited. SourceLaws 1984, LB 825, § 20; Laws 1999, LB 632, § 8; Laws 2010, LB816, § 82.