House of Representatives

HB 2279

motor vehicle dealer franchises

Sponsors: Representatives Leff, Avelar, Senator Verkamp: Representative Marsh et al

 

DP

Committee on Commerce and Economic Development

DP

Caucus and COW

DP 

Third Read

 

DP

As Passed the House

X

As Transmitted to Governor
 
HB 2279 makes numerous changes to the Arizona motor vehicle dealer franchise law.

 

History

Laws 2000, Chapter 102, HB 2101, made various changes to Arizona's franchise laws to prohibit a manufacturer, franchiser, distributor or importer of motor vehicles (factory) from engaging in unfair discrimination or competition among its franchisees (dealers).  Prior to the effective date, the Alliance of Automobile Manufacturers and the Association of International Automobile Manufacturers filed a lawsuit challenging the constitutionality of some of its provisions.  The State of Arizona was assisted by the Arizona Automobile Dealers' Association to defend the provisions of the legislation passed in the Year 2000.  HB 2279 is the result of more than a year of negotiations and compromise by all concerned parties and serves as the settlement agreement of the 2000 litigation.

 

Provisions

·          Clarifies the definition of a retail consumer who is considered a lead and outlines pertinent requirements.

·          Specifies the financial information that must remain confidential and outlines exceptions.

·          Prescribes the services that may be offered (by the factory) to the retail purchaser such as providing emergency roadside services or factory-sponsored extended service contracts if all requirements in the bill are met.  In addition, there is clarification regarding the process involved in the extension of a lease or the sale of a lease vehicle.

·          Stipulates that a factory may approve a customer's credit application for financing or leasing a vehicle provided that the final transaction takes place through a licensed dealer and the factory does not establish an interest rate.

·          For promotions involving sales, leases or financing of reasonable and limited duration, clarifies that programs lasting up to a year are presumed to be reasonable and limited.

·          Modifies the definition of factory, expands and clarifies the definition of parts.

·          Provides a definition of financing and outlines the exclusions.

·          Establishes a definition of service.

 

 

 

 

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45th Legislature                       

Second Regular Session            2          May 13, 2002

 

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