Bill Text: IA HSB176 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill relating to the regulation of agreements between manufacturers or distributors, and dealers relating to the sale of recreational vehicles and including applicability provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-03-05 - Voted - Transportation. [HSB176 Detail]
Download: Iowa-2015-HSB176-Introduced.html
House
Study
Bill
176
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
TRANSPORTATION
BILL
BY
CHAIRPERSON
BYRNES)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
agreements
between
1
manufacturers
or
distributors,
and
dealers
relating
to
the
2
sale
of
recreational
vehicles
and
including
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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DIVISION
I
1
RECREATIONAL
VEHICLE
SALES
2
Section
1.
NEW
SECTION
.
322E.1
Definitions.
3
When
used
in
this
chapter,
unless
the
context
otherwise
4
requires:
5
1.
“Area
of
sales
responsibility”
means
the
geographical
6
area,
agreed
to
by
a
dealer
and
a
manufacturer
or
distributor
7
in
a
manufacturer
and
dealer
agreement,
within
which
area
8
the
dealer
has
the
exclusive
right
to
display
and
sell
the
9
manufacturer’s
or
distributor’s
new
recreational
vehicles
of
a
10
particular
line-make
to
a
consumer.
11
2.
“Consumer”
means
a
person
who
is
offered
or
purchases
a
12
new
recreational
vehicle
in
a
retail
transaction.
13
3.
“Dealer”
means
any
person,
firm,
corporation,
or
business
14
entity
licensed
or
required
to
be
licensed
as
a
motor
vehicle
15
dealer
pursuant
to
chapter
322
or
as
a
travel
trailer
dealer
16
pursuant
to
chapter
322C.
17
4.
“Distributor”
means
any
person,
firm,
corporation,
or
18
business
entity
that
purchases
new
recreational
vehicles
for
19
resale
to
a
dealer.
20
5.
“Factory
campaign”
means
an
effort
on
the
part
of
a
21
warrantor
to
contact
a
recreational
vehicle
owner
or
dealer
in
22
order
to
address
a
part
or
equipment
issue.
23
6.
“Family
member”
means
a
person
who
is
the
spouse,
child,
24
grandchild,
parent,
sibling,
niece,
or
nephew
of
a
recreational
25
vehicle
owner
or
the
spouse
of
such
a
person.
26
7.
“Fifth-wheel
trailer”
means
a
vehicle,
mounted
on
wheels,
27
designed
to
provide
temporary
living
quarters
for
recreational,
28
camping,
or
travel
use,
of
such
size
and
weight
as
to
not
29
require
a
special
highway
movement
permit
and
designed
to
be
30
towed
by
a
motorized
vehicle
that
contains
a
towing
mechanism
31
mounted
above
or
forward
of
the
tow
vehicle’s
rear
axle.
32
8.
“Folding
camping
trailer”
means
a
vehicle
mounted
on
33
wheels
and
constructed
with
collapsible
partial
side
walls
34
that
fold
for
towing
by
another
vehicle
and
unfold
to
provide
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temporary
living
quarters
for
recreational,
camping,
or
travel
1
use.
2
9.
“Line-make”
means
a
specific
series
of
recreational
3
vehicles
that
include
all
of
the
following:
4
a.
Are
identified
by
a
common
series
trade
name
or
5
trademark.
6
b.
Are
targeted
to
a
particular
market
segment,
as
7
determined
by
the
recreational
vehicle’s
decor,
features,
8
equipment,
size,
weight,
and
price
range.
9
c.
Have
lengths
and
interior
floor
plans
that
distinguish
10
the
recreational
vehicle
from
other
recreational
vehicles
11
with
substantially
the
same
decor,
features,
equipment,
size,
12
weight,
and
price
range.
13
d.
Belong
to
a
single,
distinct
classification
of
14
recreational
vehicle
product
type
having
a
substantial
degree
15
of
commonality
in
the
construction
of
the
chassis,
frame,
and
16
body,
and
in
price
range.
17
e.
Are
authorized
for
sale
by
a
dealer
pursuant
to
a
18
manufacturer
and
dealer
agreement.
19
10.
“Manufacturer”
means
any
person,
firm,
corporation,
20
or
business
entity
that
engages
in
the
manufacturing
of
21
recreational
vehicles.
22
11.
“Manufacturer
and
dealer
agreement”
means
a
written
23
agreement
or
contract
entered
into
between
a
manufacturer
24
or
distributor
and
a
dealer
that
fixes
the
rights
and
25
responsibilities
of
the
parties
and
pursuant
to
which
the
26
dealer
sells
new
recreational
vehicles.
27
12.
“Motor
home”
means
a
motorized
vehicle
which
is
either
28
self-propelled
or
towed
by
a
consumer-owned
vehicle,
and
29
is
primarily
designed
to
provide
temporary
living
quarters
30
for
recreational,
camping,
or
travel
use.
A
“motor
home”
31
contains
at
least
four
of
the
following
permanently
installed
32
independent
life-support
systems
which
meet
the
national
fire
33
protection
association
standard
for
recreational
vehicles:
34
a.
A
cooking
facility
with
an
on-board
fuel
source.
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b.
A
potable
water
supply
system
that
includes
at
least
1
a
sink,
a
faucet,
and
a
water
tank
with
an
exterior
service
2
supply
connection.
3
c.
A
toilet
with
exterior
evacuation.
4
d.
A
gas
or
electric
refrigerator.
5
e.
A
heating
or
air
conditioning
system
with
an
on-board
6
power
or
fuel
source
separate
from
the
vehicle
engine.
7
f.
A
one
hundred
ten
to
one
hundred
twenty
volt
power
8
supply.
9
13.
“Park
model
recreational
vehicle”
means
a
vehicle
that
10
is
all
of
the
following:
11
a.
Designed
and
marketed
primarily
not
for
use
as
a
12
permanent
dwelling
but
as
temporary
living
quarters
for
13
recreational,
camping,
travel,
or
seasonal
use.
14
b.
Between
three
hundred
twenty
and
four
hundred
square
15
feet
in
size
based
on
the
exterior
dimensions
of
the
vehicle
16
measured
at
the
largest
horizontal
projections
when
erected
on
17
site
including
all
space
which
has
a
ceiling
height
of
more
18
than
five
feet,
and
any
expandable
room,
slide-out,
tip-out,
19
or
tag-along
unit.
20
c.
Built
on
a
single
chassis
and
not
designed
to
accept
21
additional
structures,
add-ons,
or
other
additions
that
will
22
increase
the
area
as
determined
in
paragraph
“b”
in
excess
of
23
four
hundred
square
feet.
24
d.
Built
pursuant
to
a
third-party
inspection
and
25
certification
process.
26
e.
Built
to
the
American
national
standards
institute
A119.5
27
park
model
recreational
vehicle
standard.
28
14.
“Proprietary
part”
means
any
part
manufactured
by
or
for
29
and
sold
exclusively
by
a
manufacturer.
30
15.
“Recreational
vehicle”
means
a
vehicle
which
is
31
either
self-propelled
or
towed
by
a
consumer-owned
vehicle,
32
primarily
designed
to
provide
temporary
living
quarters
for
33
recreational,
camping,
or
travel
use
that
complies
with
all
34
applicable
federal
vehicle
regulations
and
does
not
require
a
35
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special
highway
movement
permit
to
legally
use
the
highways.
1
“Recreational
vehicle”
includes
a
“motor
home”
and
a
“travel
2
trailer”
.
3
16.
“Supplier”
means
any
person,
firm,
corporation,
or
4
business
entity
that
engages
in
the
manufacture
of
recreational
5
vehicle
parts,
accessories,
or
components.
6
17.
“Transient
consumer”
means
a
consumer
who
is
temporarily
7
traveling
through
a
dealer’s
area
of
sales
responsibility.
8
18.
“Travel
trailer”
means
a
vehicle,
mounted
on
wheels,
9
designed
to
provide
temporary
living
quarters
for
recreational,
10
camping,
or
travel
use
of
such
size
and
weight
as
to
not
11
require
a
special
highway
movement
permit
when
towed
by
a
12
motorized
vehicle.
“Travel
trailer”
includes
a
fifth-wheel
13
travel
trailer,
folding
camping
trailer,
truck
camper,
and
a
14
park
model
recreational
vehicle,
but
does
not
include
a
vehicle
15
that
is
so
designed
as
to
permit
it
to
be
towed
exclusively
by
16
a
motorcycle.
17
19.
“Truck
camper”
means
a
vehicle
designed
to
be
placed
in
18
the
bed
of
a
pickup
truck
to
provide
temporary
living
quarters
19
for
recreational,
camping,
or
travel
use.
20
20.
“Warrantor”
means
any
person,
firm,
corporation,
or
21
business
entity,
including
any
manufacturer
or
supplier,
that
22
provides
a
written
warranty
to
a
consumer
in
connection
with
23
a
new
recreational
vehicle
or
a
part,
accessory,
or
component
24
of
a
new
recreational
vehicle.
“Warrantor”
does
not
include
25
a
dealer,
supplier,
or
other
person,
firm,
corporation,
or
26
business
entity
not
controlled
by
a
manufacturer
that
provides
27
a
service
contract,
mechanical
or
other
insurance,
or
extended
28
warranties
sold
for
separate
consideration
to
a
consumer.
29
Sec.
2.
NEW
SECTION
.
322E.2
Manufacturer
and
dealer
30
agreements
——
area
of
sales
responsibility.
31
1.
A
manufacturer
or
distributor
shall
not
sell
a
new
32
recreational
vehicle
in
this
state
to
or
through
a
dealer
33
without
first
entering
into
a
written
manufacturer
and
dealer
34
agreement
with
the
dealer
that
has
been
signed
by
both
parties.
35
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A
dealer
shall
not
sell
a
new
recreational
vehicle
in
this
1
state
without
first
entering
into
a
written
manufacturer
and
2
dealer
agreement
with
a
manufacturer
or
distributor
that
has
3
been
signed
by
both
parties.
4
2.
A
manufacturer
and
dealer
agreement
shall
designate
the
5
area
of
sales
responsibility
exclusively
assigned
to
a
dealer
6
by
the
manufacturer
or
distributor
and
the
manufacturer
or
7
distributor
shall
not
change
that
area
or
contract
with
another
8
dealer
for
sale
of
the
same
line-make
in
the
designated
area
9
for
the
duration
of
the
agreement.
10
3.
If,
subsequent
to
entering
into
a
manufacturer
and
11
dealer
agreement,
a
dealer
enters
into
an
agreement
with
12
another
manufacturer
or
distributor
to
sell
recreational
13
vehicles,
or
enters
into
an
agreement
to
increase
the
dealer’s
14
preexisting
commitment
to
sell
recreational
vehicles
of
another
15
manufacturer
or
distributor,
the
manufacturer
or
distributor
16
may
revise
the
area
of
sales
responsibility
designated
in
the
17
manufacturer
and
dealer
agreement,
upon
a
determination
by
the
18
manufacturer
or
distributor
that
the
market
penetration
of
the
19
manufacturer’s
or
distributor’s
products
is
jeopardized
by
the
20
dealer’s
subsequent
agreement
to
sell
or
increase
the
sales
of
21
another
manufacturer’s
or
distributor’s
recreational
vehicles.
22
4.
Except
as
otherwise
provided
in
subsection
3,
the
area
of
23
sales
responsibility
designated
in
a
manufacturer
and
dealer
24
agreement
shall
not
be
reviewed
or
changed
until
at
least
one
25
year
after
execution
of
the
agreement
without
the
consent
of
26
both
parties
to
the
agreement.
27
Sec.
3.
NEW
SECTION
.
322E.3
Manufacturer
and
dealer
28
agreements
——
termination,
cancellation,
nonrenewal,
and
29
alteration.
30
1.
Termination
by
manufacturer
or
distributor.
A
31
manufacturer
or
distributor,
directly
or
through
any
authorized
32
officer,
agent,
or
employee,
may
terminate,
cancel,
or
fail
to
33
renew
a
manufacturer
and
dealer
agreement
with
or
without
good
34
cause
as
follows:
35
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a.
If
the
manufacturer
or
distributor
terminates,
cancels,
1
or
fails
to
renew
a
manufacturer
and
dealer
agreement
without
2
good
cause,
the
manufacturer
or
distributor
shall
comply
with
3
the
provisions
of
section
322E.4.
4
b.
If
the
manufacturer
or
distributor
terminates,
cancels,
5
or
fails
to
renew
a
manufacturer
and
dealer
agreement
with
6
good
cause,
the
manufacturer
or
distributor
is
not
required
to
7
comply
with
the
provisions
of
section
322E.4.
8
c.
The
manufacturer
or
distributor
has
the
burden
of
showing
9
good
cause
for
terminating,
canceling,
or
failing
to
renew
a
10
manufacturer
and
dealer
agreement.
For
purposes
of
determining
11
whether
good
cause
exists
for
such
termination,
cancellation,
12
or
nonrenewal
of
the
agreement,
any
of
the
following
factors
13
may
be
considered:
14
(1)
The
extent
of
the
affected
dealer’s
penetration
in
the
15
area
of
sales
responsibility.
16
(2)
The
nature
and
extent
of
the
dealer’s
investment
in
the
17
dealer’s
business.
18
(3)
The
adequacy
of
the
dealer’s
service
facilities,
19
equipment,
parts,
supplies,
and
personnel.
20
(4)
The
effect
of
the
proposed
termination,
cancellation,
21
or
nonrenewal
of
the
agreement
on
the
community.
22
(5)
The
extent
and
quality
of
the
dealer’s
service
under
the
23
warranties
of
the
recreational
vehicles
sold.
24
(6)
The
dealer’s
failure
to
follow
agreed
upon
procedures
or
25
standards
related
to
the
overall
operation
of
the
dealership.
26
(7)
The
dealer’s
performance
under
the
terms
of
the
27
manufacturer
and
dealer
agreement.
28
d.
(1)
Except
as
otherwise
provided
in
this
paragraph
29
“d”
,
a
manufacturer
or
distributor
shall
provide
a
dealer
with
30
at
least
ninety
days’
prior
written
notice
of
termination,
31
cancellation,
or
nonrenewal
of
the
manufacturer
and
dealer
32
agreement
if
the
agreement
is
being
terminated,
canceled,
or
33
nonrenewed
with
or
without
good
cause.
34
(2)
(a)
If
the
proposed
termination,
cancellation,
or
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nonrenewal
of
the
agreement
is
for
good
cause,
the
notice
shall
1
state
all
of
the
reasons
for
the
termination,
cancellation,
or
2
nonrenewal
and
shall
further
state
that
if,
within
thirty
days
3
following
receipt
of
the
notice,
the
dealer
provides
to
the
4
manufacturer
or
distributor
a
written
notice
of
intent
to
cure
5
all
claimed
deficiencies,
the
dealer
shall
then
have
ninety
6
days
following
receipt
of
the
notice
to
cure
the
deficiencies.
7
If
the
dealer
fails
to
provide
notice
of
intent
to
cure
the
8
deficiencies
within
thirty
days
following
receipt
of
the
9
notice,
the
termination,
cancellation,
or
nonrenewal
of
the
10
agreement
for
good
cause
takes
effect
thirty
days
following
the
11
dealer’s
receipt
of
the
notice.
12
(b)
If
the
dealer
provides
notice
of
intent
to
cure
the
13
deficiencies
stated
and
the
deficiencies
are
cured
by
the
14
dealer
within
ninety
days
following
receipt
of
the
notice,
15
the
manufacturer’s
or
distributor’s
notice
to
the
dealer
is
16
voided.
If
the
dealer
provides
notice
of
intent
to
cure
the
17
deficiencies
stated
and
fails
to
cure
the
deficiencies
within
18
ninety
days
following
receipt
of
the
notice,
the
termination,
19
cancellation,
or
nonrenewal
of
the
agreement
for
good
cause
20
takes
effect
ninety
days
following
the
dealer’s
receipt
of
the
21
notice.
22
(c)
If
the
dealer
has
new
and
untitled
inventory
of
23
recreational
vehicles
on
hand
at
the
time
the
termination,
24
cancellation,
or
nonrenewal
of
the
agreement
takes
effect
for
25
good
cause,
the
inventory
may
be
sold
by
the
dealer
as
provided
26
in
section
322E.4,
subsection
2,
paragraph
“b”
.
27
e.
Notwithstanding
paragraph
“d”
,
the
notice
period
for
28
termination,
cancellation,
or
nonrenewal
of
a
manufacturer
29
and
dealer
agreement
for
good
cause
may
be
reduced
to
thirty
30
days
if
the
grounds
for
such
termination,
cancellation,
or
31
nonrenewal
are
due
to
any
of
the
following
factors:
32
(1)
The
dealer
or
one
of
the
dealer’s
owners
has
been
33
convicted
of
or
has
entered
a
plea
of
nolo
contendere
to
a
34
felony.
35
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av/nh
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26
H.F.
_____
(2)
The
dealer
has
abandoned
or
closed
the
dealer’s
business
1
operations
for
ten
consecutive
business
days,
unless
the
2
closing
is
due
to
an
act
of
God,
a
strike,
a
labor
difficulty,
3
or
other
cause
over
which
the
dealer
has
no
control.
4
(3)
The
dealer
has
made
a
significant
misrepresentation
5
that
materially
affects
the
business
relationship
of
the
6
manufacturer
or
distributor
and
the
dealer.
7
(4)
The
dealer’s
license
has
been
suspended,
revoked,
8
denied,
or
not
renewed.
9
(5)
The
dealer
has
committed
a
material
violation
of
this
10
chapter
which
is
not
cured
within
thirty
days
after
receipt
of
11
written
notice
of
the
violation.
12
f.
Notwithstanding
paragraphs
“d”
and
“e”
,
the
manufacturer
13
and
dealer
agreement
may
be
terminated,
canceled,
or
nonrenewed
14
for
good
cause
at
any
time
if
the
reason
for
the
termination,
15
cancellation,
or
nonrenewal
is
the
dealer’s
insolvency,
the
16
dealer’s
declaration
of
an
assignment
for
the
benefit
of
17
creditors,
or
the
dealer’s
declaration
of
bankruptcy.
18
2.
Termination
by
dealer.
A
dealer
may
terminate,
cancel,
19
or
fail
to
renew
a
manufacturer
and
dealer
agreement
with
or
20
without
good
cause
as
follows:
21
a.
If
the
dealer
terminates,
cancels,
or
fails
to
renew
22
a
manufacturer
and
dealer
agreement
without
good
cause,
the
23
dealer
shall
comply
with
the
provisions
of
section
322E.4.
24
b.
If
the
dealer
terminates,
cancels,
or
fails
to
renew
a
25
manufacturer
and
dealer
agreement
with
good
cause,
the
dealer
26
is
not
required
to
comply
with
the
provisions
of
section
27
322E.4.
28
c.
(1)
Except
as
otherwise
provided
in
this
paragraph
“c”
,
29
a
dealer
shall
provide
a
manufacturer
or
distributor
with
at
30
least
ninety
days’
notice
of
termination,
cancellation,
or
31
nonrenewal
of
the
manufacturer
and
dealer
agreement
if
the
32
agreement
is
being
terminated,
canceled,
or
nonrenewed
with
or
33
without
good
cause.
34
(2)
(a)
If
the
termination,
cancellation,
or
nonrenewal
35
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26
H.F.
_____
of
the
agreement
is
for
good
cause,
the
dealer
has
the
burden
1
of
showing
good
cause
and
the
notice
shall
state
all
of
2
the
reasons
for
the
proposed
termination,
cancellation,
or
3
nonrenewal.
The
notice
shall
further
state
that
if,
within
4
thirty
days
following
receipt
of
the
notice,
the
manufacturer
5
or
distributor
provides
to
the
dealer
a
written
notice
of
6
intent
to
cure
all
claimed
deficiencies,
the
manufacturer
or
7
distributor
shall
then
have
ninety
days
following
receipt
of
8
the
notice
to
cure
the
deficiencies.
If
the
manufacturer
or
9
distributor
fails
to
provide
notice
of
intent
to
cure
the
10
deficiencies
to
the
dealer
within
thirty
days
following
receipt
11
of
the
notice,
the
termination,
cancellation,
or
nonrenewal
of
12
the
agreement
for
good
cause
takes
effect
thirty
days
following
13
the
manufacturer’s
or
distributor’s
receipt
of
the
notice.
14
(b)
If
the
deficiencies
stated
in
the
notice
are
cured
by
15
the
manufacturer
or
distributor
within
ninety
days
following
16
receipt
of
the
notice,
the
dealer’s
notice
to
the
manufacturer
17
or
distributor
is
voided.
If
the
manufacturer
or
distributor
18
provides
notice
of
intent
to
cure
the
deficiencies
stated
and
19
fails
to
cure
the
deficiencies
within
ninety
days
following
20
receipt
of
the
notice,
the
termination,
cancellation,
or
21
nonrenewal
of
the
agreement
for
good
cause
takes
effect
ninety
22
days
following
the
manufacturer’s
or
distributor’s
receipt
of
23
the
notice.
24
d.
Notwithstanding
paragraph
“c”
,
the
notice
period
for
25
termination,
cancellation,
or
nonrenewal
of
a
manufacturer
and
26
dealer
agreement
by
a
dealer
may
be
reduced
to
thirty
days
if
27
there
is
good
cause
for
such
termination,
cancellation,
or
28
nonrenewal
due
to
any
of
the
following
factors:
29
(1)
The
manufacturer
or
distributor
has
been
convicted
of
or
30
has
entered
a
plea
of
nolo
contendere
to
a
felony.
31
(2)
The
business
operations
of
the
manufacturer
or
32
distributor
have
been
abandoned
or
closed
for
ten
consecutive
33
business
days,
unless
the
closing
is
due
to
an
act
of
God,
34
a
strike,
a
labor
difficulty,
or
other
cause
over
which
the
35
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2019HC
(5)
86
av/nh
9/
26
H.F.
_____
manufacturer
or
distributor
has
no
control.
1
(3)
The
manufacturer
or
distributor
has
made
a
significant
2
misrepresentation
that
materially
affects
the
business
3
relationship
of
the
manufacturer
or
distributor
and
the
dealer.
4
(4)
The
manufacturer
or
distributor
has
committed
a
5
material
violation
of
this
chapter
which
is
not
cured
within
6
thirty
days
after
receipt
of
written
notice
of
the
violation.
7
(5)
The
manufacturer
or
distributor
has
declared
bankruptcy
8
or
insolvency,
or
an
assignment
for
the
benefit
of
creditors
or
9
bankruptcy
has
occurred.
10
Sec.
4.
NEW
SECTION
.
322E.4
Repurchase
or
sale
of
11
inventory.
12
1.
If
the
manufacturer
and
dealer
agreement
is
terminated,
13
canceled,
or
not
renewed
by
the
manufacturer
or
distributor
14
without
good
cause
as
provided
in
section
322E.3,
subsection
15
1,
or
if
the
dealer
terminates,
cancels,
or
does
not
renew
16
the
manufacturer
and
dealer
agreement
with
good
cause
as
17
provided
in
section
322E.3,
subsection
2,
and
the
manufacturer
18
or
distributor
fails
to
provide
notice
of
intent
to
cure
the
19
claimed
deficiencies
or
fails
to
cure
the
claimed
deficiencies
20
as
provided
in
section
322E.3,
subsection
2,
the
manufacturer
21
or
distributor
shall,
at
the
dealer’s
option,
and
within
22
forty-five
days
after
termination,
cancellation,
or
nonrenewal
23
of
the
agreement,
repurchase
all
of
the
following:
24
a.
(1)
All
new,
untitled
recreational
vehicles
that
25
were
acquired
from
the
manufacturer
or
distributor
within
26
twelve
months
prior
to
the
effective
date
of
the
notice
of
27
termination,
cancellation,
or
nonrenewal
of
the
agreement,
that
28
have
not
been
used
except
for
demonstration
purposes,
and
that
29
have
not
been
altered
or
damaged,
at
one
hundred
percent
of
the
30
net
invoice
cost,
including
transportation,
less
applicable
31
rebates
and
discounts
to
the
dealer.
32
(2)
In
the
event
that
any
of
the
recreational
vehicles
33
repurchased
pursuant
to
this
paragraph
“a”
are
damaged,
but
34
do
not
trigger
a
consumer
disclosure
requirement,
the
amount
35
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26
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_____
due
to
the
dealer
shall
be
reduced
by
the
cost
to
repair
the
1
vehicle.
Damage
incurred
prior
to
delivery
to
the
dealer
that
2
was
disclosed
at
the
time
of
delivery
does
not
disqualify
3
repurchase
pursuant
to
this
paragraph
“a”
.
4
b.
All
undamaged
accessories
and
proprietary
parts
sold
5
to
the
dealer
for
resale
within
twelve
months
prior
to
the
6
effective
date
of
termination,
cancellation,
or
nonrenewal
7
of
the
agreement,
if
accompanied
by
the
original
invoice,
at
8
one
hundred
five
percent
of
the
original
net
price
paid
to
the
9
manufacturer
or
distributor,
to
compensate
the
dealer
for
the
10
cost
of
handling,
packing,
and
shipping
the
parts
for
return
to
11
the
manufacturer
or
distributor.
12
c.
All
properly
functioning
diagnostic
equipment,
special
13
tools,
current
signage,
or
other
equipment
and
machinery
14
that
was
purchased
by
the
dealer
upon
the
request
of
the
15
manufacturer
or
distributor
within
five
years
prior
to
the
16
effective
date
of
the
termination,
cancellation,
or
nonrenewal
17
of
the
agreement,
and
that
can
no
longer
be
used
in
the
normal
18
course
of
the
dealer’s
ongoing
business.
19
2.
a.
A
dealer
is
not
prohibited
from
selling
the
remaining
20
inventory
of
a
particular
line-make
that
is
in
stock
after
21
a
dealer
and
manufacturer
agreement
has
been
terminated,
22
canceled,
or
nonrenewed
by
a
manufacturer
or
distributor
23
without
good
cause
as
provided
in
section
322E.3,
subsection
1.
24
b.
If
recreational
vehicles
of
a
particular
line-make
25
are
not
returned
or
required
to
be
returned
by
the
dealer
to
26
the
manufacturer
or
distributor
pursuant
to
the
terminated,
27
canceled,
or
nonrenewed
manufacturer
and
dealer
agreement,
the
28
dealer
may
continue
to
sell
all
line-makes
that
were
subject
to
29
the
agreement
and
are
currently
in
stock
until
those
line-makes
30
are
no
longer
in
the
dealer’s
inventory.
31
Sec.
5.
NEW
SECTION
.
322E.5
Transfer
of
ownership
——
family
32
succession
——
objections.
33
1.
a.
If
a
dealer
desires
to
make
a
change
in
ownership
34
of
a
dealership
by
sale
of
the
business
assets,
a
stock
35
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26
H.F.
_____
transfer,
or
otherwise,
the
dealer
shall
give
the
manufacturer
1
or
distributor
that
is
a
party
to
a
manufacturer
and
dealer
2
agreement
written
notice
of
the
proposed
change
at
least
3
fifteen
business
days
before
the
change
is
effective,
including
4
all
supporting
documentation
as
may
be
reasonably
required
by
5
the
manufacturer
or
distributor
to
determine
whether
to
make
an
6
objection
to
the
sale,
transfer,
or
other
change
in
ownership.
7
In
the
absence
of
a
breach
by
the
dealer
of
the
manufacturer
8
and
dealer
agreement
or
a
violation
of
this
chapter,
the
9
manufacturer
or
distributor
shall
not
object
to
the
proposed
10
change
in
ownership
unless
the
objection
to
the
prospective
11
transferee
is
due
to
any
of
the
following
factors:
12
(1)
The
transferee
has
previously
been
a
party
to
a
13
manufacturer
and
dealer
agreement
with
the
manufacturer
or
14
distributor
that
was
terminated,
canceled,
or
nonrenewed
by
the
15
manufacturer
or
distributor
for
good
cause.
16
(2)
The
transferee
has
been
convicted
of
a
felony
or
any
17
crime
of
fraud,
deceit,
or
moral
turpitude.
18
(3)
The
transferee
lacks
any
license
required
by
law.
19
(4)
The
transferee
does
not
have
an
active
line
of
credit
20
sufficient
to
purchase
the
manufacturer’s
or
distributor’s
21
products.
22
(5)
The
transferee
has
undergone
bankruptcy,
insolvency,
23
a
general
assignment
for
the
benefit
of
creditors,
or
the
24
appointment
of
a
receiver,
trustee,
or
conservator
to
take
25
possession
of
the
transferee’s
business
or
property
within
the
26
previous
ten
years.
27
b.
If
a
manufacturer
or
distributor
objects
to
a
proposed
28
change
in
ownership
of
a
dealership,
the
manufacturer
or
29
distributor
shall
give
written
notice
of
its
reasons
for
the
30
objection
to
the
dealer
within
ten
business
days
after
receipt
31
of
the
dealer’s
notification
and
supporting
documentation
of
32
the
proposed
change.
The
manufacturer
or
distributor
has
33
the
burden
of
proof
to
show
that
its
objection
complies
with
34
the
requirements
of
this
subsection.
If
the
manufacturer
or
35
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26
H.F.
_____
distributor
does
not
give
the
dealer
timely
notice
of
its
1
objection,
the
proposed
change
in
ownership
of
the
dealership
2
shall
be
deemed
approved.
3
2.
a.
It
is
unlawful
for
a
manufacturer
or
distributor
to
4
fail
to
provide
a
dealer
with
the
opportunity
to
designate,
5
in
writing,
a
family
member
as
a
successor
to
ownership
of
6
the
dealership
in
the
event
of
the
death,
incapacity,
or
7
retirement
of
the
dealer.
If
a
dealer
desires
to
designate
8
a
family
member
as
a
successor
to
a
dealership,
the
dealer
9
shall
give
the
manufacturer
or
distributor
that
is
a
party
10
to
the
manufacturer
and
dealer
agreement
with
the
dealer
11
written
notice
of
the
proposed
designation
or
modification
of
12
a
previous
designation
at
least
fifteen
business
days
before
13
the
designation
or
proposed
modification
of
a
designation
is
14
effective,
including
all
supporting
documentation
as
may
be
15
reasonably
required
by
the
manufacturer
or
distributor
to
16
determine
whether
to
make
an
objection
to
the
succession
plan.
17
In
the
absence
of
a
breach
by
the
dealer
of
the
manufacturer
18
and
dealer
agreement
or
a
violation
of
this
chapter,
the
19
manufacturer
or
distributor
shall
not
object
to
the
designated
20
successor
unless
the
objection
is
due
to
any
of
the
following
21
factors:
22
(1)
The
designated
successor
has
previously
been
a
party
to
23
a
manufacturer
and
dealer
agreement
with
the
manufacturer
or
24
distributor
that
was
terminated,
canceled,
or
nonrenewed
by
the
25
manufacturer
or
distributor
for
good
cause.
26
(2)
The
designated
successor
has
been
convicted
of
a
felony
27
or
any
crime
of
fraud,
deceit,
or
moral
turpitude.
28
(3)
The
designated
successor
lacks
any
license
required
by
29
law
at
the
time
of
succession.
30
(4)
The
designated
successor
does
not
have
an
active
31
line
of
credit
sufficient
to
purchase
the
manufacturer’s
or
32
distributor’s
products
at
the
time
of
succession.
33
(5)
The
designated
successor
has
undergone
bankruptcy,
34
insolvency,
a
general
assignment
for
the
benefit
of
creditors,
35
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(5)
86
av/nh
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26
H.F.
_____
or
the
appointment
of
a
receiver,
trustee,
or
conservator
to
1
take
possession
of
the
designated
successor’s
business
or
2
property
within
the
previous
ten
years.
3
b.
It
is
unlawful
for
a
manufacturer
or
distributor
to
4
prevent
or
refuse
to
honor
the
succession
of
a
designated
5
family
member
to
ownership
of
a
dealership
when
the
dealer
6
is
deceased,
incapacitated,
or
has
retired,
unless
the
7
manufacturer
or
distributor
has
provided
to
the
dealer
written
8
notice
of
the
manufacturer’s
or
distributor’s
objections
to
9
the
succession
within
ten
days
after
receipt
of
the
dealer’s
10
designation
of
a
successor
or
modification
of
the
dealer’s
11
succession
plan.
If
a
manufacturer
or
distributor
objects
12
to
the
proposed
succession
of
a
designated
family
member
of
13
the
dealer
to
the
dealership,
the
manufacturer
or
distributor
14
shall
give
written
notice
of
its
reasons
for
the
objection
15
to
the
dealer
within
ten
business
days
after
receipt
of
the
16
dealer’s
notification
and
supporting
documentation
of
the
17
proposed
succession
or
modification
of
the
succession
plan.
18
The
manufacturer
or
distributor
has
the
burden
of
proof
to
19
show
that
the
objection
complies
with
the
requirements
of
20
this
subsection.
If
the
manufacturer
or
distributor
does
not
21
give
the
dealer
timely
notice
of
its
objection,
the
proposed
22
succession
plan
for
ownership
of
the
dealership
shall
be
23
deemed
approved.
However,
a
family
member
of
the
dealer
may
24
not
succeed
to
ownership
of
the
dealership
if
the
succession
25
involves,
without
the
manufacturer’s
or
distributor’s
consent,
26
a
relocation
of
the
dealership
or
alteration
of
the
terms
and
27
conditions
of
the
manufacturer
and
dealer
agreement.
28
Sec.
6.
NEW
SECTION
.
322E.6
Warranty
obligations.
29
1.
A
warrantor
shall
do
all
of
the
following:
30
a.
Specify
in
writing
to
each
dealer
what
obligations
31
the
dealer
has,
if
any,
for
preparation
and
delivery
of,
and
32
warranty
services
on,
the
warrantor’s
products.
33
b.
Compensate
the
dealer
for
warranty
services
required
of
34
the
dealer
by
the
warrantor.
35
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H.F.
_____
c.
Provide
the
dealer
with
a
schedule
of
compensation
and
1
time
allowances
for
the
performance
of
warranty
services.
The
2
schedule
of
compensation
shall
include
reasonable
compensation
3
for
diagnostic
services
performed
as
well
as
warranty
services.
4
2.
Time
allowances
for
the
diagnosis
and
performance
of
5
warranty
services
shall
be
reasonable
for
the
service
to
6
be
performed.
In
determining
what
constitutes
reasonable
7
compensation
under
this
section,
the
principle
factors
to
be
8
given
consideration
are
the
actual
wage
rates
being
paid
by
the
9
dealer
and
the
actual
retail
wage
rates
being
charged
by
other
10
dealers
in
the
community
in
which
the
dealer
is
doing
business.
11
The
compensation
of
a
dealer
for
warranty
services
shall
not
be
12
less
than
the
lowest
actual
retail
wage
rates
charged
by
the
13
dealer
for
like
nonwarranty
services
as
long
as
such
actual
14
wage
rates
are
reasonable.
15
3.
A
warrantor
shall
reimburse
a
dealer
for
any
warranty
16
part,
accessory,
or
complete
component
at
actual
wholesale
cost
17
plus
a
minimum
of
a
thirty
percent
handling
charge,
up
to
a
18
maximum
of
one
hundred
fifty
dollars
and
the
cost,
if
any,
of
19
freight
to
return
such
part,
component,
or
accessory
to
the
20
warrantor.
21
4.
Warranty
audits
of
dealer
records
may
be
conducted
by
a
22
warrantor
on
a
reasonable
basis,
and
dealer
claims
for
warranty
23
compensation
shall
not
be
denied
except
for
cause,
such
as
24
performance
of
nonwarranty
repairs,
material
noncompliance
with
25
the
warrantor’s
published
policies
and
procedures,
lack
of
26
material
documentation,
fraud,
or
misrepresentation.
27
5.
A
dealer
shall
submit
claims
for
compensation
for
the
28
performance
of
warranty
services
to
the
warrantor
within
29
forty-five
days
after
completion
of
the
warranty
services.
30
6.
A
dealer
shall
immediately
notify
a
warrantor
verbally
31
or
in
writing
if
the
dealer
is
unable
to
perform
diagnostic
32
services
and
warranty
services
within
ten
days
of
receipt
of
a
33
verbal
or
written
complaint
from
a
consumer.
34
7.
A
warrantor
shall
disapprove
a
claim
submitted
by
35
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26
H.F.
_____
a
dealer
for
compensation
for
the
performance
of
warranty
1
services,
in
writing,
within
forty-five
days
after
submission
2
of
the
claim
in
the
manner
and
form
prescribed
by
the
3
warrantor.
A
claim
not
specifically
disapproved
as
required
4
by
this
subsection
shall
be
deemed
approved
and
shall
be
paid
5
within
sixty
days
of
submission
of
the
claim.
6
8.
A
warrantor
shall
not
do
any
of
the
following:
7
a.
Fail
to
perform
any
of
the
warrantor’s
obligations
with
8
respect
to
its
warranted
products.
9
b.
Fail
to
include,
in
written
notices
of
a
factory
campaign
10
to
recreational
vehicle
owners
and
dealers,
the
expected
date
11
by
which
necessary
parts
and
equipment,
including
tires
and
12
chassis
or
chassis
parts,
will
be
available
to
dealers
to
13
perform
the
factory
campaign
work.
The
warrantor
may
ship
14
parts
to
a
dealer
to
effect
factory
campaign
work,
and,
if
such
15
parts
are
in
excess
of
the
dealer’s
requirements,
the
dealer
16
may
return
unused
parts
to
the
warrantor
for
credit
after
17
completion
of
the
factory
campaign.
18
c.
Fail
to
compensate
the
warrantor’s
dealers
for
authorized
19
repairs
effected
by
the
dealer
on
merchandise
damaged
in
20
manufacture
or
in
transit
to
the
dealer
by
a
carrier
designated
21
by
the
warrantor,
factory
branch,
distributor,
or
distributor
22
branch.
23
d.
Fail
to
compensate
the
warrantor’s
dealers
in
accordance
24
with
the
schedule
of
compensation
provided
to
the
dealer
25
pursuant
to
this
section
if
the
warranty
services
for
which
26
compensation
is
claimed
are
performed
in
a
timely
and
competent
27
manner
as
required
in
this
section.
28
e.
Intentionally
misrepresent
in
any
way
to
consumers
that
29
warranties
with
respect
to
the
manufacture,
performance,
or
30
design
of
recreational
vehicles
are
made
by
the
dealer
as
31
warrantor
or
co-warrantor.
32
f.
Require
the
warrantor’s
dealers
to
make
warranties
to
a
33
consumer
that
are
in
any
manner
related
to
the
manufacture
of
34
the
recreational
vehicle.
35
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26
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_____
9.
A
dealer
shall
not
do
any
of
the
following:
1
a.
Fail
to
perform
predelivery
inspection
functions
in
a
2
competent
and
timely
manner,
as
specified
by
the
warrantor.
3
b.
Fail
to
perform
warranty
services
authorized
by
the
4
warrantor
in
a
competent
and
timely
manner
on
any
transient
5
consumer’s
recreational
vehicle
of
a
line-make
sold
or
serviced
6
by
that
dealer.
7
c.
Fail
to
accurately
document
the
time
spent
completing
8
each
repair,
the
total
number
of
repair
attempts
conducted
on
9
a
single
unit,
and
the
number
of
repair
attempts
for
the
same
10
repair
conducted
on
a
single
recreational
vehicle.
11
d.
Fail
to
notify
the
warrantor
within
ten
days
of
a
second
12
repair
attempt
on
a
recreational
vehicle
which
impairs
the
use,
13
value,
or
safety
of
the
vehicle.
14
e.
Fail
to
maintain
written
records,
including
a
consumer’s
15
signature,
regarding
the
amount
of
time
a
unit
is
stored
for
16
the
consumer’s
convenience
during
a
repair.
17
f.
Make
fraudulent
warranty
claims
or
misrepresent
the
terms
18
of
any
warranty.
19
Sec.
7.
NEW
SECTION
.
322E.7
Indemnification.
20
1.
a.
Notwithstanding
the
terms
of
a
manufacturer
and
21
dealer
agreement,
a
warrantor
shall
indemnify
and
hold
harmless
22
the
warrantor’s
dealer
against
any
losses
or
damages
to
the
23
extent
that
the
losses
or
damages
are
caused
by
the
negligence
24
or
willful
misconduct
of
the
warrantor.
25
b.
A
dealer
shall
not
be
denied
indemnification
for
failure
26
to
discover,
disclose,
or
remedy
a
defect
in
the
design
or
27
manufacturing
of
a
new
recreational
vehicle.
A
dealer
may
28
be
denied
indemnification
if
the
dealer
fails
to
remedy
a
29
known
and
announced
defect
in
accordance
with
the
written
30
instructions
of
the
warrantor
for
whom
the
dealer
is
obligated
31
to
perform
warranty
services.
32
c.
A
dealer
shall
provide
to
the
warrantor
a
copy
of
any
33
pending
lawsuit
in
which
allegations
are
made
that
are
covered
34
by
the
provisions
of
this
subsection
within
ten
days
after
35
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(5)
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av/nh
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26
H.F.
_____
receiving
notice
of
such
lawsuit.
1
d.
Notwithstanding
any
provision
to
the
contrary,
this
2
subsection
continues
to
apply
even
after
a
new
recreational
3
vehicle
is
titled.
4
2.
a.
Notwithstanding
the
terms
of
a
manufacturer
and
5
dealer
agreement,
a
dealer
shall
indemnify
and
hold
harmless
6
the
dealer’s
warrantor
against
any
losses
or
damages
to
the
7
extent
that
the
losses
or
damages
are
caused
by
the
negligence
8
or
willful
misconduct
of
the
dealer.
9
b.
A
warrantor
shall
provide
to
the
dealer
a
copy
of
any
10
pending
lawsuit
in
which
allegations
are
made
that
are
covered
11
by
the
provisions
of
this
subsection
within
ten
days
after
12
receiving
notice
of
such
lawsuit.
13
c.
Notwithstanding
any
provision
to
the
contrary,
this
14
subsection
continues
to
apply
even
after
a
new
recreational
15
vehicle
is
titled.
16
Sec.
8.
NEW
SECTION
.
322E.8
Inspection
and
rejection
by
17
dealer.
18
1.
Whenever
a
new
recreational
vehicle
is
damaged
prior
19
to
transit
or
is
damaged
in
transit
to
the
dealer
and
the
20
carrier
or
means
of
transportation
has
been
selected
by
the
21
manufacturer
or
distributor,
the
dealer
shall
notify
the
22
manufacturer
or
distributor
of
the
damage
within
the
time
frame
23
specified
in
the
manufacturer
and
dealer
agreement
and
shall
do
24
either
of
the
following:
25
a.
Request
from
the
manufacturer
or
distributor
26
authorization
to
replace
the
components,
parts,
or
accessories
27
damaged
or
otherwise
repair
the
vehicle.
28
b.
Reject
the
vehicle
within
the
time
frame
set
forth
in
29
subsection
4.
30
2.
If
the
manufacturer
or
distributor
refuses
to
authorize
31
repair
of
the
damage
within
ten
days
after
receipt
of
32
notification,
or
if
the
dealer
rejects
the
new
recreational
33
vehicle
because
of
damage,
ownership
of
the
vehicle
shall
34
revert
to
the
manufacturer
or
distributor.
35
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av/nh
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26
H.F.
_____
3.
The
dealer
shall
exercise
due
care
when
in
custody
of
a
1
damaged
new
recreational
vehicle,
but
the
dealer
shall
have
no
2
other
obligations,
financial
or
otherwise,
with
respect
to
that
3
vehicle.
4
4.
The
time
frame
for
inspection
and
rejection
of
a
damaged
5
new
recreational
vehicle
by
a
dealer
shall
be
included
in
the
6
manufacturer
and
dealer
agreement
and
shall
not
be
less
than
7
two
business
days
after
the
physical
delivery
of
the
vehicle
8
to
the
dealer.
9
5.
Any
new
recreational
vehicle
that
has,
at
the
time
of
10
delivery
to
the
dealer,
an
unreasonable
amount
of
miles
on
the
11
vehicle’s
odometer,
as
determined
by
the
dealer,
may
be
subject
12
to
rejection
by
the
dealer
and
ownership
of
the
vehicle
shall
13
revert
to
the
manufacturer
or
distributor.
In
no
instance
14
shall
a
dealer
deem
an
amount
less
than
the
distance
between
15
the
dealer
and
the
manufacturer’s
factory
or
between
the
dealer
16
and
the
distributor’s
point
of
distribution,
plus
one
hundred
17
miles,
as
an
unreasonable
amount
of
miles.
18
Sec.
9.
NEW
SECTION
.
322E.9
Civil
actions
——
mediation.
19
1.
A
dealer,
manufacturer,
distributor,
or
warrantor
20
injured
by
another
party’s
violation
of
this
chapter
may
bring
21
a
civil
action
in
district
court
to
recover
actual
damages
22
resulting
from
such
violation.
The
court
shall
award
attorney
23
fees
and
costs
to
the
prevailing
party
in
such
an
action.
24
Venue
for
a
civil
action
authorized
by
this
section
shall
be
25
exclusively
in
the
county
in
which
the
dealer’s
business
is
26
located.
In
an
action
involving
more
than
one
dealer,
venue
27
may
be
in
any
county
in
which
any
dealer
that
is
a
party
to
the
28
action
is
located.
29
2.
Prior
to
bringing
suit
under
this
section,
the
party
30
alleging
a
violation
of
this
chapter
shall
serve
a
written
31
demand
for
mediation
upon
the
alleged
offending
party.
32
a.
The
demand
for
mediation
shall
be
served
upon
the
alleged
33
offending
party
via
certified
mail
at
the
address
stated
in
the
34
manufacturer
and
dealer
agreement
between
the
parties.
35
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_____
b.
The
demand
for
mediation
shall
contain
a
brief
statement
1
of
the
dispute
or
violation
alleged
and
relief
sought
by
the
2
party
filing
the
demand.
3
c.
Within
twenty
days
after
service
of
a
demand
for
4
mediation,
the
parties
shall
mutually
select
an
independent
5
certified
mediator
and
shall
meet
with
that
mediator
for
6
the
purpose
of
attempting
to
resolve
the
dispute
or
alleged
7
violation.
The
meeting
place
for
the
mediation
shall
be
8
in
this
state
at
a
location
selected
by
the
mediator.
The
9
mediator
may
extend
the
date
for
the
meeting
for
good
cause
10
shown
by
either
party
or
upon
stipulation
of
both
parties.
11
d.
The
service
of
a
demand
for
mediation
under
this
12
section
shall
toll
the
time
for
the
filing
of
any
complaint,
13
petition,
protest,
or
other
action
under
this
chapter
until
14
representatives
of
both
parties
have
met
with
the
mutually
15
selected
mediator
for
the
purpose
of
attempting
to
resolve
16
the
dispute
or
alleged
violation.
If
a
complaint,
petition,
17
protest,
or
other
action
has
been
filed
before
that
meeting,
18
the
court
shall
enter
an
order
suspending
any
proceeding
or
19
action
on
such
complaint,
petition,
protest,
or
other
action
20
until
the
mediation
meeting
has
occurred
and
may,
upon
written
21
stipulation
of
all
parties
to
the
proceeding
or
action
that
22
they
wish
to
continue
mediation
under
this
section,
enter
an
23
order
suspending
the
proceeding
or
action
for
as
long
a
period
24
of
time
as
the
court
considers
appropriate.
25
e.
Each
party
to
the
mediation
shall
bear
their
own
costs
26
for
attorney
fees
and
shall
divide
equally
among
them
the
cost
27
of
the
mediator.
28
3.
In
addition
to
the
remedies
provided
in
this
section,
29
and
notwithstanding
the
existence
of
any
additional
remedy
at
30
law,
a
manufacturer,
distributor,
warrantor,
or
dealer
may
31
apply
to
the
district
court
for
the
grant,
upon
a
hearing
and
32
for
cause
shown,
of
a
temporary
or
permanent
injunction,
or
33
both,
restraining
any
person
from
acting
as
a
dealer
without
34
being
properly
licensed,
from
violating
or
continuing
to
35
-20-
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2019HC
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av/nh
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26
H.F.
_____
violate
any
of
the
provisions
of
this
chapter,
or
from
failing
1
or
refusing
to
comply
with
the
requirements
of
this
chapter.
2
Such
injunction
shall
be
issued
without
bond.
A
single
act
in
3
violation
of
the
provisions
of
this
chapter
shall
be
sufficient
4
cause
to
authorize
the
issuance
of
an
injunction
pursuant
to
5
this
subsection.
6
DIVISION
II
7
COORDINATING
AMENDMENTS
8
Sec.
10.
Section
321.1,
subsection
36C,
paragraphs
b
and
c,
9
Code
2015,
are
amended
to
read
as
follows:
10
b.
“Travel
trailer”
means
a
vehicle
without
motive
power
11
used,
manufactured,
or
constructed
to
permit
its
use
as
a
12
conveyance
upon
the
public
streets
and
highways
and
designed
13
to
permit
its
use
as
a
place
of
human
habitation
by
one
or
more
14
persons.
The
vehicle
may
be
up
to
eight
feet
six
inches
in
15
width
and
its
overall
length
shall
not
exceed
forty
forty-five
16
feet.
The
vehicle
shall
be
customarily
or
ordinarily
used
for
17
vacation
or
recreational
purposes
and
not
used
as
a
place
of
18
permanent
habitation.
If
the
vehicle
is
used
in
this
state
as
19
a
place
of
human
habitation
for
more
than
ninety
consecutive
20
days
in
one
location
it
shall
be
classed
as
a
manufactured
or
21
mobile
home
regardless
of
the
size
limitations
provided
in
this
22
paragraph.
23
c.
“Fifth-wheel
travel
trailer”
means
a
type
of
travel
24
trailer
which
is
towed
by
a
pickup
by
a
connecting
device
known
25
as
a
fifth
wheel.
However,
this
type
of
travel
trailer
may
26
have
an
overall
length
which
shall
not
exceed
forty
forty-five
27
feet.
28
Sec.
11.
Section
322.2,
subsection
13,
Code
2015,
is
amended
29
to
read
as
follows:
30
13.
“Motor
vehicle”
means
any
self-propelled
vehicle
subject
31
to
registration
under
chapter
321
,
including
a
motor
home
as
32
defined
in
section
322E.1
.
33
Sec.
12.
Section
322.3,
subsection
1,
Code
2015,
is
amended
34
to
read
as
follows:
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1.
A
person
shall
not
engage
in
this
state
in
the
business
1
of
selling
at
retail
new
motor
vehicles
of
any
make
or
2
represent
or
advertise
that
the
person
is
engaged
or
intends
3
to
engage
in
such
business
in
this
state
unless
the
person
4
is
authorized
to
do
so
by
a
contract
in
writing
with
the
5
manufacturer
or
distributor
of
such
make
of
new
motor
vehicles
6
and
unless
the
department
has
licensed
the
person
as
a
motor
7
vehicle
dealer
in
this
state
in
motor
vehicles
of
such
make
8
and
has
issued
to
the
person
a
license
in
writing
as
provided
9
in
this
chapter
.
A
person
shall
not
engage
in
this
state
in
10
the
business
of
selling
at
retail
new
motor
vehicles
that
are
11
recreational
vehicles
as
defined
in
section
322E.1,
unless
the
12
person
is
authorized
to
do
so
by
a
manufacturer
and
dealer
13
agreement
as
provided
in
chapter
322E.
14
Sec.
13.
Section
322A.1,
subsection
8,
Code
2015,
is
amended
15
to
read
as
follows:
16
8.
“Motor
vehicle”
means
“motor
vehicles”
as
defined
in
17
chapter
321
which
are
subject
to
registration
pursuant
to
the
18
provisions
thereof
,
except
those
motor
vehicles
defined
as
19
recreational
vehicles
in
section
322E.1
.
20
Sec.
14.
Section
322C.2,
subsection
4,
Code
2015,
is
amended
21
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
22
following:
23
4.
“Fifth-wheel
trailer”
means
the
same
as
defined
in
24
section
322E.1.
25
Sec.
15.
Section
322C.2,
Code
2015,
is
amended
by
adding
the
26
following
new
subsections:
27
NEW
SUBSECTION
.
4A.
“
Folding
camping
trailer”
means
the
28
same
as
defined
in
section
322E.1.
29
NEW
SUBSECTION
.
6A.
“Park
model
recreational
vehicle”
means
30
the
same
as
defined
in
section
322E.1.
31
Sec.
16.
Section
322C.2,
subsection
10,
Code
2015,
is
32
amended
by
striking
the
subsection
and
inserting
in
lieu
33
thereof
the
following:
34
10.
“Travel
trailer”
means
the
same
as
defined
in
section
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322E.1.
1
Sec.
17.
Section
322C.3,
subsection
1,
Code
2015,
is
amended
2
to
read
as
follows:
3
1.
A
person
shall
not
engage
in
this
state
in
the
business
4
of
selling
at
retail
new
travel
trailers
of
any
make,
or
5
represent
or
advertise
that
the
person
is
engaged
or
intends
6
to
engage
in
such
business
in
this
state,
unless
the
person
is
7
authorized
by
a
contract
in
writing
between
that
person
and
the
8
manufacturer
or
distributor
of
that
make
of
new
travel
trailers
9
to
sell
the
trailers
in
this
state
as
provided
in
chapter
322E
,
10
and
unless
the
department
has
issued
to
the
person
a
license
as
11
a
travel
trailer
dealer
for
the
same
make
of
travel
trailer.
12
Sec.
18.
Section
322C.3,
subsections
5
and
7,
Code
2015,
are
13
amended
by
striking
the
subsections.
14
DIVISION
III
15
APPLICABILITY
16
Sec.
19.
APPLICABILITY.
The
provisions
of
this
Act
apply
17
to
manufacturer
and
dealer
agreements
that
are
entered
into
or
18
renewed
on
or
after
July
1,
2016.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
regulates
agreements
between
manufacturers
or
23
distributors,
and
dealers
relating
to
the
sale
of
recreational
24
vehicles
and
includes
coordinating
amendments
and
applicability
25
provisions.
26
DIVISION
I.
New
Code
chapter
322E
regulates
manufacturer
27
and
dealer
agreements
fixing
the
rights
and
responsibilities
of
28
each
party
pertaining
to
the
sale
of
new
recreational
vehicles
29
in
the
state.
A
“recreational
vehicle”
is
a
vehicle
that
is
30
either
self-propelled
or
towed
by
a
consumer-owned
tow
vehicle
31
and
is
primarily
designed
to
provide
temporary
living
quarters
32
for
recreational,
camping,
or
travel
use.
A
“recreational
33
vehicle”
includes
a
“motor
home”
which
is
a
motorized
vehicle,
34
and
a
“travel
trailer”
such
as
a
fifth-wheel
trailer,
folding
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camping
trailer,
truck
camper,
or
a
park
model
recreational
1
vehicle,
which
is
nonmotorized
and
towable.
2
A
manufacturer
or
distributor,
and
a
dealer
are
required
3
to
enter
into
a
written
manufacturer
and
dealer
agreement
4
before
selling
new
recreational
vehicles
in
the
state.
The
5
agreement
must
designate
the
dealer’s
exclusive
area
of
sales
6
responsibility.
A
manufacturer
or
distributor,
or
a
dealer
7
may
terminate,
cancel,
or
fail
to
renew
the
agreement
with
or
8
without
cause
and
the
bill
specifies
notification
requirements,
9
what
factors
may
be
considered
in
determining
whether
good
10
cause
exists,
and
requirements
concerning
repurchase
or
sale
of
11
remaining
inventory
of
recreational
vehicles
and
outstanding
12
financial
obligations
between
the
parties
to
the
agreement.
13
The
party
that
terminates,
cancels,
or
fails
to
renew
the
14
agreement
for
good
cause
has
the
burden
of
showing
cause.
15
The
bill
requires
that
a
dealer
that
desires
to
make
a
change
16
in
ownership
of
the
dealership
give
notice
to
the
manufacturer
17
or
distributor
of
the
proposed
change.
The
manufacturer
or
18
distributor
is
not
allowed
to
object
to
the
proposal
unless
the
19
objection
is
due
to
factors
specified
in
the
bill
concerning
20
the
proposed
transferee.
The
manufacturer
must
make
a
written
21
objection
and
has
the
burden
of
proving
that
the
objection
22
complies
with
the
bill’s
requirements.
23
A
manufacturer
or
distributor
is
prohibited
from
failing
to
24
provide
a
dealer
with
the
opportunity
to
designate
a
family
25
member
as
a
successor
to
the
dealership
in
the
event
of
the
26
dealer’s
death,
incapacity,
or
retirement
so
long
as
the
27
dealer
gives
written
notice
of
the
designation
before
it
takes
28
effect.
The
manufacturer
or
distributor
cannot
object
to
the
29
designation
unless
the
dealer
is
in
breach
of
the
manufacturer
30
and
dealer
agreement
or
in
violation
of
the
provisions
of
new
31
Code
chapter
322E
or
the
objection
is
due
to
other
specified
32
factors.
A
manufacturer
or
distributor
is
prohibited
from
33
refusing
to
honor
the
succession
of
the
designated
family
34
member
unless
the
manufacturer
or
distributor
has
provided
the
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dealer
with
written
notice
of
an
objection
to
the
dealer’s
1
designation
after
receiving
notice
of
the
designation.
2
In
regards
to
warranty
obligations
on
new
recreational
3
vehicles,
the
bill
requires
the
warrantor,
that
person
4
providing
a
written
warranty
on
the
vehicles,
to
specify
the
5
dealer’s
obligations
for
preparation,
delivery,
and
warranty
6
services
on
the
warrantor’s
products
and
how
the
dealer
will
7
be
compensated
for
provision
of
those
services.
The
bill
8
specifies
the
warrantor’s
and
dealer’s
obligations
to
each
9
other
concerning
warranties.
10
The
bill
provides
that
both
the
warrantor
and
the
dealer
have
11
duties
to
indemnify
and
hold
each
other
harmless
to
the
extent
12
that
losses
or
damages
are
caused
by
the
negligence
or
willful
13
misconduct
of
the
other.
These
duties
continue
even
after
a
14
new
recreational
vehicle
is
titled.
15
The
bill
specifies
the
rights
and
obligations
of
a
dealer
and
16
a
manufacturer
or
distributor
when
a
new
recreational
vehicle
17
is
damaged
in
transit.
The
bill
specifies
a
time
frame
for
a
18
dealer
to
inspect
a
delivered
vehicle
and
to
either
reject
or
19
request
to
repair
the
damaged
vehicle.
20
A
dealer,
manufacturer,
distributor,
or
warrantor
injured
21
by
another
party’s
violation
of
the
provisions
of
new
Code
22
chapter
322E
may
bring
a
civil
action
in
district
court
to
23
recover
actual
damages
and
the
prevailing
party
in
the
action
24
is
entitled
to
attorney
fees
and
costs.
However,
prior
to
25
bringing
suit,
the
party
alleging
the
violation
is
required
26
to
serve
a
demand
for
mediation
upon
the
alleged
offending
27
party.
The
parties
must
mutually
select
and
share
the
cost
of
28
retaining
an
independent
mediator
to
attempt
to
resolve
the
29
dispute
or
alleged
violation.
Service
of
the
mediation
demand
30
tolls
the
time
for
filing
any
other
proceeding
or
action
and
31
the
district
court
is
required
to
suspend
any
proceeding
or
32
action
until
the
mediation
meeting
occurs.
In
addition
to
any
33
other
remedy,
either
party
may
apply
to
the
district
court
for
34
a
temporary
or
permanent
injunction.
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DIVISION
II.
Division
II
of
the
bill
includes
coordinating
1
amendments.
2
Code
chapter
321
(motor
vehicles
and
law
of
the
road)
is
3
amended
to
provide
that
travel
trailers
and
fifth-wheel
travel
4
trailers
shall
not
exceed
45
feet,
instead
of
40
feet
in
5
length.
6
Code
chapter
322
(motor
vehicle
manufacturers,
distributors,
7
wholesalers,
and
dealers)
is
amended
to
provide
that
“motor
8
vehicle”
includes
a
“motor
home”
as
defined
in
new
Code
chapter
9
322E.
Code
section
322.3(1)
is
amended
to
prohibit
a
person
10
from
selling
a
motor
vehicle
that
also
meets
the
definition
11
of
a
“recreational
vehicle”
pursuant
to
new
Code
chapter
12
322E,
unless
the
person
is
authorized
to
do
so
pursuant
to
a
13
manufacturer
and
dealer
agreement
that
meets
the
requirements
14
of
new
Code
chapter
322E.
15
Code
chapter
322A
(motor
vehicle
franchisors)
is
amended
16
to
provide
that
Code
chapter
322A
does
not
apply
to
a
motor
17
vehicle
that
is
defined
as
a
“recreational
vehicle”
pursuant
to
18
new
Code
chapter
322E.
19
Code
chapter
322C
(travel
trailer
dealers,
manufacturers,
20
and
distributors)
is
amended
to
include
definitions
of
21
recreational
vehicles
that
are
consistent
with
the
definitions
22
in
new
Code
chapter
322E.
Code
section
322C.3(1)
is
amended
23
to
provide
that
the
required
manufacturer
or
distributor
and
24
dealer
agreement
must
be
made
in
accordance
with
the
provisions
25
of
new
Code
chapter
322E.
Code
section
322C.3
is
amended
to
26
strike
two
provisions
concerning
manufacturers
or
distributors,
27
and
dealers
of
travel
trailers
that
are
inconsistent
with
28
provisions
contained
in
new
Code
chapter
322E.
29
DIVISION
III.
The
provisions
of
the
bill
apply
to
30
manufacturer
and
dealer
agreements
pertaining
to
the
sale
of
31
new
recreational
vehicles
that
are
entered
into
or
renewed
on
32
or
after
July
1,
2016.
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