Summary of the Truly Agreed Version of the Bill

CCS SS SCS HCS HB 1288 -- MANUFACTURERS' CONTRACTUAL AGREEMENTS

This bill changes the laws regarding contractual agreements
between manufacturers and other merchants.

Out-of-state recreational vehicle dealers who wish to participate
in a vehicle show or exhibition are required to notify the
Department of Revenue at least 30 days prior to the event.  The
department must then determine if the dealer complies with
Missouri's laws.  If the dealer does not comply, the department
must notify the dealer at least 15 days prior to the event of its
inability to participate.  The department may assess a fine up to
$1,000 for any violation.

Regulations for compensation agreements between franchisors and
franchisees of motorcycles and all-terrain vehicles are
established.  These franchisors are required to specify in
writing the franchisee's obligation for preparation, delivery,
and warranty service on its products and provide the franchisee
with a schedule of compensation to be paid for parts, work,
service, and the time allowance for the performance of the work
and services.  Motorcycle and all-terrain franchisors will be
prohibited from failing to perform any warranty obligation;
failing to provide a written notice of franchisor recalls to the
owner of new motorcycles and all-terrain vehicles; and failing to
compensate franchisees for the cost of repairs effected by
recalls.

Claims made by a franchisee for labor and parts must be paid
within 30 days after approval.  Franchisors must compensate
franchisees for franchisor-sponsored sales or service promotion
events, programs, or activities.  All claims must be approved or
disapproved by the franchisor within 30 days after receipt of an
approved form containing the required information.

A marine manufacturer is prohibited from canceling a dealership
agreement without good cause; the circumstances constituting good
cause are specified.  A marine manufacturer is required to
provide written notification to the marine dealership at least 90
days before the termination of any cancellation or nonrenewal of
the dealership agreement.  The notice must provide the reasons
for the change and allow the dealer 90 days to rectify any
problems that led to the decision.  If the issues are dealt with,
the notice will be void.  If the problems are not dealt with, the
change will take effect 60 days after the receipt of the
manufacturer's notice.  A dealer can terminate the dealership
agreement at any time if they give written notice to the
manufacturer at least 90 days prior to the change.  The burden of
proof lies with the manufacturer, and the 90-day requirement can
be reduced to 60 days for specified reasons.

A change in ownership must also follow the notification
requirements; a dealer must provide a 90-day written notice prior
to the closing.  Manufacturers cannot refuse a change in
ownership unless it can show that the decision is based on
reasonable criteria.  Manufacturers cannot refuse succession of
ownership to a family member unless it can show the decision was
based on the business experience, moral character, financial
qualification, or criminal record of the designated family
member.  If the manufacturer refuses any change in ownership,
they must provide a written notification of its reasons to the
dealer within 60 days after receipt of the notification and final
determination.  If no notice is provided, the change will be
deemed approved.

The bill also provides for the repurchase of certain marine
vessels when the dealer agreement is terminated by the
manufacturer at the option of the dealer.

Copyright (c) Missouri House of Representatives

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Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am