Occupational Licensing Industry News OLIN 2007-11
Franchise Agreement Between RV Dealers & ManufacturersPDF Version
New Legislation
Effective January 1, 2008, a licensed manufacturer, manufacturer branch, distributor, or distributor branch is required to provide a recreational vehicle (RV) dealer a written dealer agreement that complies with statutory franchise requirements.
The agreement shall include, but not be limited to:
- Provisions regarding dealership transfer
- Dealership termination
- Sales territory, and
- Reimbursement for costs incurred by the dealer for work related to the manufacturer’s warranty for each line-make of recreational vehicle covered by the agreement.
Background
Assembly Bill No. 1092, amended California Vehicle Code §11713.22, making it unlawful for a manufacturer or distributor to refuse to provide a recreational vehicle dealer with a written agreement.
Distribution
Notification that this memo is available online at www.dmv.ca.gov/pubs/olin/olin.htm was made via e-mail alert in December 2007 to the following:
- Dealers.
- Manufacturers.
- Distributors.
Contact
Direct questions regarding mediation between dealers, distributors, and manufacturers to the New Motor Vehicle Board at (916) 445-1888.
Direct all other questions to the Occupational Licensing Compliance Unit at (916) 229-3154.
MARY GARCIA, Chief
Occupational Licensing