New Florida Auto Dealer Law Protects Dealers from Exorbitant Manufacturer Demands
The recent passage of a bill by the Florida Legislature that the firm’s Alex Kurkin helped to draft as part of his work with the Florida Automobile Dealers Association is being well received by auto dealerships throughout the state.
The new law limits manufacturers’ ability to force auto dealers to upgrade their facilities. It also bolsters dealerships’ defenses against certain charge-backs and permits dealerships to recover its retail rate for parts and labor in warranty repairs.
As Kurkin points out in a report about the new law in a recent issue of Automotive News, the legislation “turns the tables and prevents manufacturers from using their 800-pound gorilla status against dealers.” He continues to explain in the article that the law requires automakers to pay retail-customer rates for warranty labor and parts, and manufacturers are prohibited from auditing warranty claims from dealers that demand retail payment or taking other punitive measures against them.
Firm partners Kurkin and Marc Brandes believe that the new law will prevent coercive actions by the manufacturers against dealerships.
The law stipulates that carmakers cannot:
Terminate a dealer's franchise or change or cut vehicle allocations for failure to upgrade a facility except under limited circumstances.
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Withhold incentives for facility renovation from dealers who already comply with program standards.
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Deny Florida dealers incentives offered elsewhere in the country.
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Punish dealers who sell vehicles that are later exported — without proof the dealer knew the vehicle was to be exported.
- Revoke a dealer's franchise for fraudulent action unless the dealer principal had full knowledge of the fraud.
Dealerships with questions about facets of the new law are encouraged to contact us at 305-929-8500 or via e-mail at info@kurkinbrandes.com.
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