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Direct Sales Laws

Discussion in 'Wiki' started by Wiki, Feb 27, 2016.

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  1. Wiki

    Wiki Member

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    #1 Wiki, Feb 27, 2016
    Last edited by bhzmark: Apr 20, 2016
    STATEStatusStatutory textProposed Legislation Activity and other Notes
    TexasNo direct Sales"Except as provided by this section, a manufacturer or distributor may not directly or indirectly; (1) own an interest in a franchised or nonfranchised dealer or dealership;(2) operate or control a franchised or nonfranchised dealer or dealership; or (3) act in the capacity of a franchised or nonfranchised dealer. (Tex. Occ. Code Ann. § 2301.476)
    "A motor vehicle shall not be advertised for sale in any manner that creates the impression that it is being offered for sale by the manufacturer or distributor of the vehicle. An advertisement shall not contain terms such as “factory sale,” “fleet prices,” “wholesale prices,” “factory approved,” “factory sponsored,” “manufacturer sale,” use a manufacturer's name or abbreviation in any manner calculated or likely to create an impression that the vehicle is being offered for sale by the manufacturer or distributor, or use any other similar terms which indicate sales other than retail sales from the dealer" (43 Tex. Admin. Code § 215.261).

    MichiganNo direct SalesA manufacturer shall not do any of the following: . . . (h) Directly or indirectly own, operate, or control a new motor vehicle dealer, including, but not limited to, a new motor vehicle dealer engaged primarily in performing warranty repair services on motor vehicles under the manufacturer's warranty, or a used motor vehicle dealer. Mich. Comp. Laws Ann. § 445.1574 http://www.legislature.mi.gov/docume...-HEBS-5606.pdf. Michigan Car Dealers Slip One Over On Tesla, Ban Direct Sales: UPDATED.
    W. VirginiaNo direct sales(2) A manufacturer or distributor may not do any of the following:. . . (h) Establish a new motor vehicle dealership.
    (4) no manufacturer or franchisor may sell, directly or indirectly, any new motor vehicle to a consumer in this state, except through a new motor vehicle dealer holding a franchise for the line-make covering such new motor vehicle. W. Va. Code Ann. § 17A-6A-10

    New MexicoNo direct SalesIt is unlawful for a manufacturer, distributor or representative to:. . . V. be licensed as a dealer or perform warranty or other service or own an interest, directly or indirectly, in a person licensed as a dealer or performing warranty or other service; N.M. Stat. Ann. § 57-16-5








    S. Carolina
    [to come] [South Carolina allows dealers to hire an e-retailer to sell their products via the Internet. S.C. CODE ANN. § 56-15-85 (2014).
















    SELLING STATES (per Tesla website)


    Arizona


    California


    Colorado


    Conn.
    but ". . . no manufacturer or distributor shall: (16) Own, operate or control, either directly or indirectly, a facility for the performance of motor vehicle warranty service work." Conn. Gen. Stat. Ann. § 42-133cc
    Del.


    D.C.


    Florida


    Georgia


    Hawaii


    Illinois


    Indiana
    [to come] IND. CODE ANN. §§ 9-32-11-2(c), 9-32-11-17; [Indiana only allows online sales so long as they occur within the state and are picked up from the dealer marketing online.] IND. CODE ANN. §§ 9-32-11-2(c), 9-32-11-17.
    Maine
    Not restricted. Table of Contents for Chapter 204: BUSINESS PRACTICES BETWEEN MOTOR VEHICLE MANUFACTURERS, DISTRIBUTORS AND DEALERS

    Maryland


    Mass.


    Minn.


    Missouri


    Nevada


    N.J.


    New York


    N. Carolina

    recently rejected a dealer sponsored law change
    Ohio


    Oregon


    Penn.


    Tenn.


    Utah
    A franchisor may not in this state . . . (u) except as provided in Subsection (6), directly or indirectly: (i) own an interest in a new motor vehicle dealer or dealership; (ii) operate or control a new motor vehicle dealer or dealership; (iii) act in the capacity of a new motor vehicle dealer, as defined in Section 13-14-102; or (iv) operate a motor vehicle service facility; Utah Code Ann. § 13-14-201
    Virginia
    " It shall be unlawful for any motor vehicle manufacturer . . . to own, operate, or control any motor vehicle dealership in the Commonwealth. However, this section shall not prohibit:
    . . .
    4. The ownership, operation, or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof if the Commissioner determines, after a hearing at the request of any party, that there is no dealer independent of the manufacturer or distributor, factory branch or distributor branch, or subsidiary thereof available in the community or trade area to own and operate the franchise in a manner consistent with the public interest;" § 46.2-1572. Operation of dealership by manufacturer
    "It shall be unlawful for any motor vehicle manufacturer . . . to own, operate, or control, either directly or indirectly, any motor vehicle warranty or service facility located in the Commonwealth." § 46.2-1572.1. Ownership of service facilities
    § 46.2-1573. Hearings and other remedies; civil penalties (allowing for discovery by the parties at the hearing) Virginia Dealer Association suing Tesla to prevent new store openings Tesla seeking to open Richmond facility Virginia Hearing, 4/25 -- Represent!

    Washington










     
  2. bhzmark

    bhzmark Active Member

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  3. LastGas

    LastGas Member

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    Location:
    South Carolina
    Text for South Carolina from Section 56-15-45:

    (A) It is unlawful for a manufacturer or franchisor or any parent, affiliate, wholly or partially owned subsidiary, officer, or representative of a manufacturer or franchisor to own, operate, or control or to participate in the ownership, operation, or control of a new motor vehicle dealer in this State, to establish in this State an additional dealer or dealership in which that person or entity has an interest, or to own, operate, or control, directly or indirectly, an interest in a dealer or dealership in this State, excluding a passive interest in a publicly traded corporation held for investment purposes.​

    Code of Laws - Title 56 - Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers
     
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