(a) Notwithstanding theterms of any contract, franchise, novation, or agreement, it shall be unlawfulfor any manufacturer, factory branch, distributor, or distributor branch tocharge or assess one of its franchised motor vehicle dealers located in thisState, or to charge or debit the account of the franchised motor vehicle dealerfor merchandise, tools, or equipment, other than the published cost of new motorvehicles, and merchandise, tools, or equipment specifically ordered by thefranchised motor vehicle dealer, unless the franchised motor vehicle dealerreceives a detailed itemized description of the nature and amount of eachcharge in writing at least 10 days prior to the date the charge or accountdebit is to become effective or due. For purposes of this subsection, priorwritten notice is required for the following charges or debits: advertising oradvertising materials; advertising or showroom displays; customer informationalmaterials; computer or communications hardware or software; special tools;equipment; dealership operation guides; Internet programs; and any additionalcharges or surcharges made or proposed for merchandise, tools, or equipment previouslycharged to the dealer.
(b) Any franchised newmotor vehicle dealer who seeks to challenge an actual or proposed charge,debit, payment, reimbursement, or credit to the franchised new motor vehicledealer or to the franchised new motor vehicle dealer's account in an amountless than or equal to ten thousand dollars ($10,000) and that is in violationof this Article or contrary to the terms of the franchise may, prior to filinga formal petition before the Commissioner as provided in G.S. 20‑301(b)or a civil action in any court of competent jurisdiction under G.S. 20‑308.1,request and obtain a mediated settlement conference as provided in thissubsection. Unless objection to the timeliness of the franchised new motorvehicle dealer's request for mediation under this subsection is waived inwriting by the affected manufacturer, factory branch, distributor, ordistributor branch, a franchised new motor vehicle dealer's request to mediatemust be sent to the Commissioner within 75 days after the franchised new motorvehicle dealer's receipt of written notice from a manufacturer, factory branch,distributor, or distributor branch of the charges, debits, payments,reimbursements, or credits challenged by the franchised new motor vehicledealer. If the franchised new motor vehicle dealer has requested in writingthat the manufacturer, factory branch, distributor, or distributor branchreview the questioned charges, debits, payments, reimbursements, or credits, afranchised new motor vehicle dealer's request to mediate must be sent to theCommissioner within 30 days after the franchised new motor vehicle dealer'sreceipt of the final written determination on the issue from the manufacturer,factory branch, distributor, or distributor branch.
(1) It is the policy andpurpose of this subsection to implement a system of settlement events that aredesigned to reduce the cost of litigation under this Article to the generalpublic and the parties, to focus the parties' attention on settlement ratherthan on trial preparation, and to provide a structured opportunity forsettlement negotiations to take place.
(2) The franchised newmotor vehicle dealer shall send a letter to the Commissioner by certified orregistered mail, return receipt requested, identifying the actual or proposedcharges the franchised new motor vehicle dealer seeks to challenge and thereason or basis for the challenge. The charges, debits, payments,reimbursements, or credits challenged by the franchised new motor vehicledealer need not be related, and multiple issues may be resolved in a singleproceeding. The franchised new motor vehicle dealer shall send a copy of theletter to the affected manufacturer, factory branch, distributor, ordistributor branch, addressed to the current district, zone, or regionalmanager in charge of overseeing the dealer's operations, or the registeredagent for acceptance of legal process in this State. Upon the mailing of aletter to the Commissioner and the manufacturer, factory branch, distributor,or distributor branch pursuant to this subsection, any chargeback to or anypayment required of a franchised new motor vehicle dealer by a manufacturer,factory branch, distributor, or distributor branch shall be stayed during thependency of the mediation. Upon the mailing of a letter to the Commissioner andmanufacturer, factory branch, distributor, or distributor branch pursuant tothis subsection, any statute of limitation or other time limitation for filinga petition before the Commissioner or civil action shall be tolled during thependency of the mediation.
(3) Upon receipt of thewritten request of the franchised new motor vehicle dealer, the Commissionershall appoint a mediator and send notice of that appointment to the parties. Aperson is qualified to serve as mediator as provided by this subdivision if theperson is certified to serve as a mediator under Rule 8 of the North CarolinaRules Implementing Statewide Mediated Settlement Conferences in Superior CourtCivil Actions and does not represent motor vehicle dealers or manufacturers,factory branches, distributors, or distributor branches. A mediator actingpursuant to this subdivision shall have judicial immunity in the same mannerand to the same extent as a judge of the General Court of Justice.
(4) The parties shall bywritten agreement select a venue and schedule for the mediated settlementconference conducted under this subsection. If the parties are unable to agreeon a venue and schedule, the mediator shall select a venue and schedule. Exceptby written agreement of all parties, a mediation proceeding and mediatedsettlement conference under this subsection shall be held in North Carolina.
(5) In this subsection,"mediation" means a nonbinding forum in which an impartial person,the mediator, facilitates communication between parties to promotereconciliation, settlement, or understanding among them. A mediator may notimpose his or her own judgment on the issues for that of the parties.
(6) At least 10 daysprior to the mediated settlement conference, the affected manufacturer, factorybranch, distributor, or distributor branch shall, by certified or registeredmail, return receipt requested, send the mediator and the franchised new motorvehicle dealer a detailed response to the allegations raised in the franchisednew motor vehicle dealer's written request. The mediation may be conducted byofficers or employees of the parties themselves without the appearance of legalcounsel. However, at least 10 days prior to the mediated settlement conference,either party may give notice to the other and to the mediator of its intentionto appear at the mediation with legal counsel, in which event either party mayappear at the mediation with legal counsel.
(7) A mediationproceeding conducted pursuant to this subsection shall be complete not laterthan the sixtieth day after the date of the Commissioner's notice of theappointment of the mediator; this deadline may be extended by written agreementof the parties. The parties shall be solely responsible for the compensationand expenses of the mediator on a 50/50 basis. The Commissioner is not liablefor the compensation paid or to be paid a mediator employed pursuant to thissubsection.
(8) A party may attend amediated settlement conference telephonically in lieu of personal appearance.If a party or other person required to attend a mediated settlement conferencefails to attend without good cause, the Commissioner may impose upon the partyor person any appropriate monetary sanction, including the payment of fines,attorneys' fees, mediator fees, expenses, and loss of earnings incurred bypersons attending the conference.
(9) If the mediationfails to result in a resolution of the dispute, the franchised new motorvehicle dealer may proceed as provided in G.S. 20‑301(b) and G.S. 20‑308.1.Upon the filing of a petition pursuant to G.S. 20‑301(b) or a civilaction pursuant to G.S. 20‑308.1, the affected manufacturer, factorybranch, distributor, or distributor branch shall not require payment from thedealer, or debit or charge the dealer's account, unless and until a finaljudgment supporting the payment or charge has been rendered by the Commissioneror court. All communications made during a mediation proceeding, including, butnot limited to, those communications made during a mediated settlementconference are presumed to be made in compromise negotiation and shall begoverned by Rule 408 of the North Carolina Rules of Evidence. (2001‑510, s. 1.)
(a) Notwithstanding theterms of any contract, franchise, novation, or agreement, it shall be unlawfulfor any manufacturer, factory branch, distributor, or distributor branch tocharge or assess one of its franchised motor vehicle dealers located in thisState, or to charge or debit the account of the franchised motor vehicle dealerfor merchandise, tools, or equipment, other than the published cost of new motorvehicles, and merchandise, tools, or equipment specifically ordered by thefranchised motor vehicle dealer, unless the franchised motor vehicle dealerreceives a detailed itemized description of the nature and amount of eachcharge in writing at least 10 days prior to the date the charge or accountdebit is to become effective or due. For purposes of this subsection, priorwritten notice is required for the following charges or debits: advertising oradvertising materials; advertising or showroom displays; customer informationalmaterials; computer or communications hardware or software; special tools;equipment; dealership operation guides; Internet programs; and any additionalcharges or surcharges made or proposed for merchandise, tools, or equipment previouslycharged to the dealer.
(b) Any franchised newmotor vehicle dealer who seeks to challenge an actual or proposed charge,debit, payment, reimbursement, or credit to the franchised new motor vehicledealer or to the franchised new motor vehicle dealer's account in an amountless than or equal to ten thousand dollars ($10,000) and that is in violationof this Article or contrary to the terms of the franchise may, prior to filinga formal petition before the Commissioner as provided in G.S. 20‑301(b)or a civil action in any court of competent jurisdiction under G.S. 20‑308.1,request and obtain a mediated settlement conference as provided in thissubsection. Unless objection to the timeliness of the franchised new motorvehicle dealer's request for mediation under this subsection is waived inwriting by the affected manufacturer, factory branch, distributor, ordistributor branch, a franchised new motor vehicle dealer's request to mediatemust be sent to the Commissioner within 75 days after the franchised new motorvehicle dealer's receipt of written notice from a manufacturer, factory branch,distributor, or distributor branch of the charges, debits, payments,reimbursements, or credits challenged by the franchised new motor vehicledealer. If the franchised new motor vehicle dealer has requested in writingthat the manufacturer, factory branch, distributor, or distributor branchreview the questioned charges, debits, payments, reimbursements, or credits, afranchised new motor vehicle dealer's request to mediate must be sent to theCommissioner within 30 days after the franchised new motor vehicle dealer'sreceipt of the final written determination on the issue from the manufacturer,factory branch, distributor, or distributor branch.
(1) It is the policy andpurpose of this subsection to implement a system of settlement events that aredesigned to reduce the cost of litigation under this Article to the generalpublic and the parties, to focus the parties' attention on settlement ratherthan on trial preparation, and to provide a structured opportunity forsettlement negotiations to take place.
(2) The franchised newmotor vehicle dealer shall send a letter to the Commissioner by certified orregistered mail, return receipt requested, identifying the actual or proposedcharges the franchised new motor vehicle dealer seeks to challenge and thereason or basis for the challenge. The charges, debits, payments,reimbursements, or credits challenged by the franchised new motor vehicledealer need not be related, and multiple issues may be resolved in a singleproceeding. The franchised new motor vehicle dealer shall send a copy of theletter to the affected manufacturer, factory branch, distributor, ordistributor branch, addressed to the current district, zone, or regionalmanager in charge of overseeing the dealer's operations, or the registeredagent for acceptance of legal process in this State. Upon the mailing of aletter to the Commissioner and the manufacturer, factory branch, distributor,or distributor branch pursuant to this subsection, any chargeback to or anypayment required of a franchised new motor vehicle dealer by a manufacturer,factory branch, distributor, or distributor branch shall be stayed during thependency of the mediation. Upon the mailing of a letter to the Commissioner andmanufacturer, factory branch, distributor, or distributor branch pursuant tothis subsection, any statute of limitation or other time limitation for filinga petition before the Commissioner or civil action shall be tolled during thependency of the mediation.
(3) Upon receipt of thewritten request of the franchised new motor vehicle dealer, the Commissionershall appoint a mediator and send notice of that appointment to the parties. Aperson is qualified to serve as mediator as provided by this subdivision if theperson is certified to serve as a mediator under Rule 8 of the North CarolinaRules Implementing Statewide Mediated Settlement Conferences in Superior CourtCivil Actions and does not represent motor vehicle dealers or manufacturers,factory branches, distributors, or distributor branches. A mediator actingpursuant to this subdivision shall have judicial immunity in the same mannerand to the same extent as a judge of the General Court of Justice.
(4) The parties shall bywritten agreement select a venue and schedule for the mediated settlementconference conducted under this subsection. If the parties are unable to agreeon a venue and schedule, the mediator shall select a venue and schedule. Exceptby written agreement of all parties, a mediation proceeding and mediatedsettlement conference under this subsection shall be held in North Carolina.
(5) In this subsection,"mediation" means a nonbinding forum in which an impartial person,the mediator, facilitates communication between parties to promotereconciliation, settlement, or understanding among them. A mediator may notimpose his or her own judgment on the issues for that of the parties.
(6) At least 10 daysprior to the mediated settlement conference, the affected manufacturer, factorybranch, distributor, or distributor branch shall, by certified or registeredmail, return receipt requested, send the mediator and the franchised new motorvehicle dealer a detailed response to the allegations raised in the franchisednew motor vehicle dealer's written request. The mediation may be conducted byofficers or employees of the parties themselves without the appearance of legalcounsel. However, at least 10 days prior to the mediated settlement conference,either party may give notice to the other and to the mediator of its intentionto appear at the mediation with legal counsel, in which event either party mayappear at the mediation with legal counsel.
(7) A mediationproceeding conducted pursuant to this subsection shall be complete not laterthan the sixtieth day after the date of the Commissioner's notice of theappointment of the mediator; this deadline may be extended by written agreementof the parties. The parties shall be solely responsible for the compensationand expenses of the mediator on a 50/50 basis. The Commissioner is not liablefor the compensation paid or to be paid a mediator employed pursuant to thissubsection.
(8) A party may attend amediated settlement conference telephonically in lieu of personal appearance.If a party or other person required to attend a mediated settlement conferencefails to attend without good cause, the Commissioner may impose upon the partyor person any appropriate monetary sanction, including the payment of fines,attorneys' fees, mediator fees, expenses, and loss of earnings incurred bypersons attending the conference.
(9) If the mediationfails to result in a resolution of the dispute, the franchised new motorvehicle dealer may proceed as provided in G.S. 20‑301(b) and G.S. 20‑308.1.Upon the filing of a petition pursuant to G.S. 20‑301(b) or a civilaction pursuant to G.S. 20‑308.1, the affected manufacturer, factorybranch, distributor, or distributor branch shall not require payment from thedealer, or debit or charge the dealer's account, unless and until a finaljudgment supporting the payment or charge has been rendered by the Commissioneror court. All communications made during a mediation proceeding, including, butnot limited to, those communications made during a mediated settlementconference are presumed to be made in compromise negotiation and shall begoverned by Rule 408 of the North Carolina Rules of Evidence. (2001‑510, s. 1.)
(a) Notwithstanding theterms of any contract, franchise, novation, or agreement, it shall be unlawfulfor any manufacturer, factory branch, distributor, or distributor branch tocharge or assess one of its franchised motor vehicle dealers located in thisState, or to charge or debit the account of the franchised motor vehicle dealerfor merchandise, tools, or equipment, other than the published cost of new motorvehicles, and merchandise, tools, or equipment specifically ordered by thefranchised motor vehicle dealer, unless the franchised motor vehicle dealerreceives a detailed itemized description of the nature and amount of eachcharge in writing at least 10 days prior to the date the charge or accountdebit is to become effective or due. For purposes of this subsection, priorwritten notice is required for the following charges or debits: advertising oradvertising materials; advertising or showroom displays; customer informationalmaterials; computer or communications hardware or software; special tools;equipment; dealership operation guides; Internet programs; and any additionalcharges or surcharges made or proposed for merchandise, tools, or equipment previouslycharged to the dealer.
(b) Any franchised newmotor vehicle dealer who seeks to challenge an actual or proposed charge,debit, payment, reimbursement, or credit to the franchised new motor vehicledealer or to the franchised new motor vehicle dealer's account in an amountless than or equal to ten thousand dollars ($10,000) and that is in violationof this Article or contrary to the terms of the franchise may, prior to filinga formal petition before the Commissioner as provided in G.S. 20‑301(b)or a civil action in any court of competent jurisdiction under G.S. 20‑308.1,request and obtain a mediated settlement conference as provided in thissubsection. Unless objection to the timeliness of the franchised new motorvehicle dealer's request for mediation under this subsection is waived inwriting by the affected manufacturer, factory branch, distributor, ordistributor branch, a franchised new motor vehicle dealer's request to mediatemust be sent to the Commissioner within 75 days after the franchised new motorvehicle dealer's receipt of written notice from a manufacturer, factory branch,distributor, or distributor branch of the charges, debits, payments,reimbursements, or credits challenged by the franchised new motor vehicledealer. If the franchised new motor vehicle dealer has requested in writingthat the manufacturer, factory branch, distributor, or distributor branchreview the questioned charges, debits, payments, reimbursements, or credits, afranchised new motor vehicle dealer's request to mediate must be sent to theCommissioner within 30 days after the franchised new motor vehicle dealer'sreceipt of the final written determination on the issue from the manufacturer,factory branch, distributor, or distributor branch.
(1) It is the policy andpurpose of this subsection to implement a system of settlement events that aredesigned to reduce the cost of litigation under this Article to the generalpublic and the parties, to focus the parties' attention on settlement ratherthan on trial preparation, and to provide a structured opportunity forsettlement negotiations to take place.
(2) The franchised newmotor vehicle dealer shall send a letter to the Commissioner by certified orregistered mail, return receipt requested, identifying the actual or proposedcharges the franchised new motor vehicle dealer seeks to challenge and thereason or basis for the challenge. The charges, debits, payments,reimbursements, or credits challenged by the franchised new motor vehicledealer need not be related, and multiple issues may be resolved in a singleproceeding. The franchised new motor vehicle dealer shall send a copy of theletter to the affected manufacturer, factory branch, distributor, ordistributor branch, addressed to the current district, zone, or regionalmanager in charge of overseeing the dealer's operations, or the registeredagent for acceptance of legal process in this State. Upon the mailing of aletter to the Commissioner and the manufacturer, factory branch, distributor,or distributor branch pursuant to this subsection, any chargeback to or anypayment required of a franchised new motor vehicle dealer by a manufacturer,factory branch, distributor, or distributor branch shall be stayed during thependency of the mediation. Upon the mailing of a letter to the Commissioner andmanufacturer, factory branch, distributor, or distributor branch pursuant tothis subsection, any statute of limitation or other time limitation for filinga petition before the Commissioner or civil action shall be tolled during thependency of the mediation.
(3) Upon receipt of thewritten request of the franchised new motor vehicle dealer, the Commissionershall appoint a mediator and send notice of that appointment to the parties. Aperson is qualified to serve as mediator as provided by this subdivision if theperson is certified to serve as a mediator under Rule 8 of the North CarolinaRules Implementing Statewide Mediated Settlement Conferences in Superior CourtCivil Actions and does not represent motor vehicle dealers or manufacturers,factory branches, distributors, or distributor branches. A mediator actingpursuant to this subdivision shall have judicial immunity in the same mannerand to the same extent as a judge of the General Court of Justice.
(4) The parties shall bywritten agreement select a venue and schedule for the mediated settlementconference conducted under this subsection. If the parties are unable to agreeon a venue and schedule, the mediator shall select a venue and schedule. Exceptby written agreement of all parties, a mediation proceeding and mediatedsettlement conference under this subsection shall be held in North Carolina.
(5) In this subsection,"mediation" means a nonbinding forum in which an impartial person,the mediator, facilitates communication between parties to promotereconciliation, settlement, or understanding among them. A mediator may notimpose his or her own judgment on the issues for that of the parties.
(6) At least 10 daysprior to the mediated settlement conference, the affected manufacturer, factorybranch, distributor, or distributor branch shall, by certified or registeredmail, return receipt requested, send the mediator and the franchised new motorvehicle dealer a detailed response to the allegations raised in the franchisednew motor vehicle dealer's written request. The mediation may be conducted byofficers or employees of the parties themselves without the appearance of legalcounsel. However, at least 10 days prior to the mediated settlement conference,either party may give notice to the other and to the mediator of its intentionto appear at the mediation with legal counsel, in which event either party mayappear at the mediation with legal counsel.
(7) A mediationproceeding conducted pursuant to this subsection shall be complete not laterthan the sixtieth day after the date of the Commissioner's notice of theappointment of the mediator; this deadline may be extended by written agreementof the parties. The parties shall be solely responsible for the compensationand expenses of the mediator on a 50/50 basis. The Commissioner is not liablefor the compensation paid or to be paid a mediator employed pursuant to thissubsection.
(8) A party may attend amediated settlement conference telephonically in lieu of personal appearance.If a party or other person required to attend a mediated settlement conferencefails to attend without good cause, the Commissioner may impose upon the partyor person any appropriate monetary sanction, including the payment of fines,attorneys' fees, mediator fees, expenses, and loss of earnings incurred bypersons attending the conference.
(9) If the mediationfails to result in a resolution of the dispute, the franchised new motorvehicle dealer may proceed as provided in G.S. 20‑301(b) and G.S. 20‑308.1.Upon the filing of a petition pursuant to G.S. 20‑301(b) or a civilaction pursuant to G.S. 20‑308.1, the affected manufacturer, factorybranch, distributor, or distributor branch shall not require payment from thedealer, or debit or charge the dealer's account, unless and until a finaljudgment supporting the payment or charge has been rendered by the Commissioneror court. All communications made during a mediation proceeding, including, butnot limited to, those communications made during a mediated settlementconference are presumed to be made in compromise negotiation and shall begoverned by Rule 408 of the North Carolina Rules of Evidence. (2001‑510, s. 1.)
