HB-4782, As Passed House, April 23, 2009

HOUSE BILL No. 4782

April 2, 2009, Introduced by Rep. Sheltrown and referred to the Committee on Tourism, Outdoor Recreation and Natural Resources.

A bill to regulate recreational vehicle dealers,

manufacturers, wholesalers, warrantors, and their representatives;

to regulate dealings between recreational vehicle manufacturers,

wholesalers, warrantors, and dealers; to regulate dealings between

consumers and recreational vehicle manufacturers, wholesalers,

warrantors, and dealers; to prohibit certain trade practices; to

provide for the powers and duties of certain state and local

governmental officers and entities; and to provide remedies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"recreational vehicle franchise act".

Sec. 3. As used in this act:

(a) "Area of sales responsibility" means a geographical area

agreed to by a dealer and the manufacturer in a dealer agreement in

which the dealer has the exclusive right to display or sell the

manufacturer's new recreational vehicles of a particular line‑make

to the public.

(b) "Dealer" means a person that is a dealer, as that term is

defined in section 11 of the Michigan vehicle code, 1949 PA 300,

MCL 257.11, and is licensed as a dealer of recreational vehicles

under that act.

entered into between a manufacturer and a dealer that establishes

the legal rights and obligations of the parties to that agreement

or contract and pursuant to which the dealer is authorized to sell

new recreational vehicles manufactured or distributed by the

manufacturer.

(d) "Department" means the department of state.

(e) "Factory campaign" means an effort by a warrantor to

contact recreational vehicle owners or dealers in order to address

an issue concerning a problem or defective part or equipment.

(f) "Family member" means any of the following:

(i) A spouse of an individual.

(ii) A child, grandchild, parent, sibling, niece, or nephew of

an individual.

(iii) The spouse of a child, grandchild, parent, sibling, niece,

or nephew of an individual.

(g) "Line-make" means a specific series of recreational

vehicle products that meet all of the following:

(i) Are identified by a common series trade name or trademark.

(ii) Are targeted to a particular market segment based on their

decor, features, equipment, size, weight, and price range.

(iii) Have dimensions and interior floor plans that distinguish

the recreational vehicles from recreational vehicles that have

substantially the same decor, features, equipment, weight, and

price.

(iv) Belong to a single, distinct classification of

recreational vehicle product type that has a substantial degree of

commonality in the construction of the chassis, frame, and body.

(v) Are authorized for sale by the dealer in the dealer

agreement.

(h) "Manufacturer" means a person that manufactures or

wholesales recreational vehicles or that distributes or wholesales

recreational vehicles to dealers.

(i) "Park model trailer" means that term as defined in section

38a of the Michigan vehicle code, 1949 PA 300, MCL 257.38a.

(j) "Person" means an individual, partnership, corporation,

limited liability company, association, trust, estate, or other

legal entity.

(k) "Proprietary part" means a recreational vehicle part

manufactured by or for and sold exclusively by a manufacturer.

(l) "Public vehicle show" means a recreational vehicle show

that meets the requirements of section 248(10) of the Michigan

vehicle code, 1949 PA 300, MCL 257.248.

(m) "Recreational vehicle" means that term as defined in

section 49a of the Michigan vehicle code, 1949 PA 300, MCL 257.49a,

except a park model trailer.

(n) "Transient customer" means a person who owns a

recreational vehicle, is temporarily traveling through a dealer's

area of sales responsibility, and engages the dealer to perform

service work on that recreational vehicle.

(o) "Warrantor" means a manufacturer or any other person that

provides a warranty to the consumer in connection with a new

recreational vehicle or parts, accessories, or components of a new

recreational vehicle. The term does not include a person that

provides a service contract, mechanical or other insurance, or an

extended warranty sold for separate consideration by a dealer or

other person not controlled by a manufacturer.

Sec. 5. (1) A manufacturer shall not sell a recreational

vehicle in the state to or through a dealer unless the manufacturer

has a dealer agreement with the dealer that meets the requirements

of this act and is signed by both parties.

(2) Except as provided in subsection (4), a dealer shall not

sell a new recreational vehicle in this state unless the dealer has

a dealer agreement with a manufacturer of that recreational vehicle

that meets the requirements of this act and is signed by both

parties.

(3) All of the following apply to a dealer's area of sales

responsibility included in a dealer agreement between a

manufacturer and a dealer:

(a) The manufacturer shall designate in the dealer agreement

the area of sales responsibility exclusively assigned to the

dealer.

(b) The manufacturer shall not change the dealer's area of

sales responsibility or establish another dealer for the same line-

make in that area during the term of the dealer agreement.

recreational vehicles that compete with the recreational vehicles

included in the dealer agreement, or enters into an agreement to

increase a preexisting commitment to sell any recreational vehicles

that compete with the recreational vehicles included in the dealer

agreement, while the dealer agreement is in place, the manufacturer

may revise the dealer's area of sales responsibility if both of the

following are met:

(i) The dealer agreement does not authorize or permit the

dealer to enter into that subsequent agreement.

(ii) If, in the reasonable opinion of the manufacturer, the

market penetration of the manufacturer's products is jeopardized by

that subsequent agreement.

(d) The area of sales responsibility is not subject to review

or change in the 1-year period after the date of the first delivery

of new recreational vehicles to the dealer under the initial dealer

agreement.

(4) A dealer may sell recreational vehicles outside of its

designated area of sales responsibility if all of the following are

met:

(a) If required under section 248(10) of the Michigan vehicle

code, 1949 PA 300, MCL 257.248, the dealer has obtained a separate

or supplemental license to sell those recreational vehicles.

(b) The sales meet 1 of the following:

(i) If the sales are off-premises sales that takes place at a

location in another dealer's designated area of sales

responsibility, the dealer obtains in advance of the off-premises

sales a written agreement that meets all of the following:

(A) Is signed by the dealer, the manufacturer of the

recreational vehicles the dealer intends to sell at that location,

and the other dealer.

(B) Designates the recreational vehicles to be offered for

sale.

(D) Affirmatively authorizes the sale of the designated

recreational vehicles.

(ii) The sales are off-premises sales that take place at a

location that is not in another dealer's same line-make designated

area of sales responsibility.

(iii) The sales are off-premises sales that take place in

conjunction with a public vehicle show in which more than 3 dealers

are participating and that is predominantly funded by manufacturers

or sponsored by a recreational vehicle trade association.

(5) A dealer agreement must include a designated principal of

the dealer.

(6) For purposes of section 15, a dealer agreement may

identify a family member as the successor of the principal

designated under subsection (5) or include that principal's

succession plan. A dealer may at any time change a designation or

succession plan made in the dealer agreement by providing written

notice to the manufacturer.

Sec. 7. (1) A manufacturer shall from time to time publish its

prices, charges, and terms of sale for recreational vehicles and

may only sell a recreational vehicle to a dealer in accordance with

the published prices, charges, and terms of sale in effect at the

time of sale.

(2) If a manufacturer offers a dealer a rebate, discount, or

program on any recreational vehicles, the manufacturer must offer

the same rebate, discount, or program to every similarly situated

dealer.

(3) In a renewal of a dealer agreement, the manufacturer may

not impose on the dealer additional inventory stocking requirements

or retail sales targets in excess of market growth in the dealer's

area of sales responsibility.

Sec. 9. (1) A manufacturer, directly or through any officer,

agent, or employee, may not terminate or not renew a dealer

agreement without good cause.

(2) A manufacturer has the burden of showing good cause for

terminating or not renewing a dealer agreement. All of the

following factors must be considered in determining whether there

is good cause for a proposed termination or nonrenewal of a dealer

agreement by a manufacturer:

(a) The extent of the dealer's penetration in the relevant

market area.

(b) The nature and extent of the dealer's investment in its

business.

equipment, parts, supplies, and personnel.

(d) The effect of the proposed action on the community.

(e) The extent and quality of the dealer's service under

recreational vehicle warranties.

(f) Whether the dealer fails to follow agreed‑upon procedures

or standards related to the overall operation of the dealership.

(g) The dealer's performance under the terms of dealer

agreement.

(3) Except as otherwise provided in this section, a

manufacturer shall provide a dealer with written notice of a

termination or nonrenewal of a dealer agreement. All of the

following apply to a notice described in this subsection:

(a) Except as provided in subdivision (d) or (e), the

manufacturer shall provide the notice at least 90 days before the

effective date of the termination or nonrenewal.

(b) The notice shall state all of the reasons for the

termination or nonrenewal.

manufacturer a written notification of intent to cure all claimed

deficiencies within 30 days after the dealer receives the notice,

the dealer has 30 days after the date of the notice to correct the

deficiencies. If all of the deficiencies are corrected within that

30-day period, the notice is void and the manufacturer may not

terminate or not renew the dealer agreement because of the

deficiencies stated in the notice. If the dealer does not provide a

notification of intent to cure deficiencies in that 30-day period,

the termination or nonrenewal takes effect 90 days after the dealer

received the notice.

(d) A manufacturer may reduce the notice period described in

subdivision (a) to 10 days, and is not required to allow the dealer

an opportunity to correct the deficiencies, if the manufacturer's

grounds for termination or nonrenewal are any of the specific

categories of good cause described in subsection (6)(a) to (e).

(e) A manufacturer is not required to provide notice or an

opportunity to correct deficiencies under this subsection if the

manufacturer's grounds for termination or nonrenewal is that the

dealer becomes insolvent, is bankrupt, or makes an assignment for

the benefit of creditors.

(4) If a manufacturer terminates or does not renew a dealer

agreement for good cause under this section, the manufacturer at

its option may repurchase any of the following from the dealer:

(a) All new, untitled recreational vehicles that were acquired

from the manufacturer within 12 months before the effective date of

the notice of termination that have not been used, except for

demonstration purposes, and that have not been altered or damaged,

at 100% of the net invoice cost of the recreational vehicles,

including transportation, less applicable rebates and discounts to

the dealer.

(b) All current and undamaged accessories and proprietary

parts sold to the dealer for resale within the 12 months before the

effective date of the termination that are accompanied by the

original invoice, at 105% of the original net price paid to the

manufacturer to compensate the dealer for handling, packing, and

shipping the accessories and parts.

tools, current signage, and other equipment and machinery,

purchased by the dealer within the 5 years before the effective

date of the termination at the manufacturer's request, if it cannot

be used in the normal course of the dealer's ongoing business, at

100% of the dealer's net cost, plus freight, destination, delivery,

and distribution charges and sales taxes.

(5) The dealer shall promptly return or arrange for the return

of all of the items the manufacturer elects to repurchase under

subsection (4) at the manufacturer's expense and the manufacturer

shall pay all of the amounts owed to the dealer under subsection

(4) to the dealer within 30 days after it receives the returned

items.

(6) As used in this section, "good cause" includes, but is not

limited to, any of the following:

(a) Conviction of, or plea of nolo contendere by, a dealer or

an owner of a dealer to a felony.

(b) Abandonment or closing the business operations of a dealer

for 10 consecutive business days unless the closing is due to an

act of God, strike, labor difficulty, or other cause over which the

dealer has no control.

that affects the business relationship between the dealer and the

manufacturer.

(d) Suspension or revocation of a dealer's license, or refusal

to renew a dealer's license, by the department.

(e) A material violation of this act by a dealer that is not

cured within 30 days after written notice of the violation by a

manufacturer.

(f) The dealer becomes insolvent, is bankrupt, or makes an

assignment for the benefit of creditors.

Sec. 11. (1) A dealer may not terminate a dealer agreement

without good cause. A dealer that terminates a dealer agreement

shall provide the manufacturer with written notice at least 90 days

before the effective date of the termination.

(2) All of the following apply to a termination of a dealer

agreement under this section for good cause:

(a) The notice described in subsection (1) shall state all

reasons for the proposed termination.

(b) The notice described in subsection (1) shall state that if

the manufacturer provides to the dealer a written notification of

intent to cure all claimed deficiencies within 30 days after the

manufacturer receives the notice, the manufacturer has 30 days

after the date of the notice to correct the deficiencies. If all of

the deficiencies are corrected within that 30-day period, the

notice is void and the dealer may not terminate the dealer

agreement because of the deficiencies stated in the notice. If the

manufacturer does not provide a notification of intent to cure

deficiencies in that 30-day period, the termination takes effect 90

days after the manufacturer received the notice.

subsection (1) to 10 days, and is not required to allow the

manufacturer an opportunity to correct the deficiencies, if the

dealer's grounds for termination or nonrenewal are any of the

specific categories of good cause described in subdivision (e)(i) to

(v).

(d) A dealer is not required to provide notice or an

opportunity to correct deficiencies under this subsection if the

dealer's grounds for termination or nonrenewal is that the

manufacturer becomes insolvent, is bankrupt, or makes an assignment

for the benefit of creditors.

(e) The dealer has the burden of showing good cause. Each of

the following is considered good cause for a proposed termination

of a dealer agreement by a dealer:

(i) Conviction of, or plea of nolo contendere by, the

manufacturer to a felony.

(ii) Abandonment or closing the business operations of the

manufacturer for 10 consecutive business days unless the closing is

due to an act of God, strike, labor difficulty, or other cause over

which the manufacturer has no control.

(iii) A material misrepresentation to the dealer by the

manufacturer that affects the business relationship between the

dealer and manufacturer.

(iv) A material violation of this act by the manufacturer that

is not cured within 30 days after written notice of the violation

by the dealer.

(v) A material breach of the dealer agreement by the

manufacturer.

(vi) The manufacturer becomes insolvent, is bankrupt, or makes

an assignment for the benefit of creditors.

(f) If the manufacturer fails to cure any claimed deficiencies

under subdivision (b), the dealer may require that the manufacturer

repurchase any of the following from the dealer:

(i) All new, untitled recreational vehicles that were acquired

from the manufacturer within 12 months before the effective date of

the notice of termination that have not been used, except for

demonstration purposes, and that have not been altered or damaged,

at 100% of the net invoice cost of the recreational vehicles,

including transportation, less applicable rebates and discounts to

the dealer.

(ii) All current and undamaged accessories and proprietary

parts sold to the dealer for resale within the 12 months before the

effective date of the termination that are accompanied by the

original invoice, at 105% of the original net price paid to the

manufacturer to compensate the dealer for handling, packing, and

shipping the accessories and parts.

(iii) Any properly functioning diagnostic equipment, special

tools, current signage, and other equipment and machinery,

purchased by the dealer within the 5 years before the effective

date of the termination at the manufacturer's request, if it cannot

be used in the normal course of the dealer's ongoing business, at

100% of the dealer's net cost, plus freight, destination, delivery,

and distribution charges and sales taxes.

(g) The dealer shall promptly return or arrange for the return

of all of the items the manufacturer is required to repurchase

under subdivision (f) at the manufacturer's expense and the

manufacturer shall pay all of the amounts owed to the dealer under

subdivision (f) to the dealer within 30 days after it receives the

returned items.

Sec. 13. The department may not prohibit a dealer from selling

a particular line-make after a dealer agreement has been terminated

or not renewed under section 9 or 11. If recreational vehicles of a

line-make are not returned or required to be returned to the

manufacturer, the dealer may continue to sell all line-makes that

were subject to the dealer agreement and are currently in stock

until those line-makes are no longer in the dealer inventory.

Sec. 15. (1) All of the following apply to a proposed sale of

the business assets, transfer of the stock, or other transaction

that will result in a change of ownership of a dealer, except a

transaction described in subsection (2):

(a) The dealer must provide written notice to the manufacturer

at least 90 days before the proposed closing of the transaction.

The notice shall include complete copies of all documentation of

the proposed transaction and any other documentation reasonably

requested by the manufacturer in order to determine if it will make

an objection to the transaction.

(b) If the dealer is not in breach of the dealer agreement or

in violation of this act at the time it provides the notice

described in subdivision (a), the manufacturer shall not object to

the proposed transaction unless the prospective transferee meets 1

or more of the following:

(i) It previously was a party to a dealer agreement with the

manufacturer that the manufacturer terminated.

(ii) Was previously convicted of a felony or any crime of

fraud, deceit, or moral turpitude.

(iii) Does not have any license required by law to conduct

business as a dealer in this state.

(iv) Does not have an active line of credit sufficient to

purchase recreational vehicles from the manufacturer according to

the terms of the dealer agreement.

(v) In the preceding 10 years, was bankrupt or insolvent, made

a general assignment for the benefit of creditors, or a receiver,

trustee, or conservator was appointed to take possession of the

transferee's business or property.

the manufacturer shall give written notice of its objection,

including its reasons for objecting, to the dealer within 30 days

after receiving the notice described in subdivision (a). If the

manufacturer does not give notice of its objection within that 30-

day period, the proposed transaction is considered approved by the

manufacturer.

(d) For purposes of subdivision (c), the manufacturer has the

burden of demonstrating its objection to the proposed transaction.

(2) All of the following apply concerning the death,

incapacity, or retirement of the designated principal of a dealer:

(a) The manufacturer must provide the dealer an opportunity to

designate, in writing, a family member as a successor to the dealer

in the event of the death, incapacity, or retirement of the

designated principal.

(b) The manufacturer shall not prevent or refuse to honor the

succession to a dealership by a family member of the deceased,

incapacitated, or retired designated principal of that dealer

unless the manufacturer had provided written notice to the dealer

of any objections to the dealer's succession plan within 30 days

after receiving the dealer's succession plan or any modification of

the dealer's succession plan.

is in breach of the dealer agreement, a manufacturer shall not

object to the succession to a dealership by a family member of the

deceased, incapacitated, or retired designated principal unless the

successor meets 1 or more of the following:

(i) Was previously convicted of a felony or any crime of fraud,

deceit, or moral turpitude.

(ii) In the preceding 10 years, was bankrupt, insolvent, or

made an assignment for the benefit of creditors.

(iii) Was previously a party to a dealer agreement with the

manufacturer that the manufacturer terminated for a breach of a

dealer agreement.

(iv) Does not have an active line of credit sufficient to

purchase recreational vehicles from the manufacturer according to

the terms of the dealer agreement.

(v) Does not have any license required by law to conduct

business as a dealer in this state.

(d) The manufacturer has the burden of proof regarding any

objection to the succession to a dealership by a family member of

the deceased, incapacitated, or retired designated principal.

(e) The manufacturer's consent is required for the succession

to a dealership by a family member of the deceased, incapacitated,

or retired designated principal if the succession involves a

relocation of the business or an alteration of the terms and

conditions of the dealer agreement.

Sec. 17. (1) A warrantor has all of the following obligations

to each dealer engaged in the sale or lease of products that are

covered by a warranty from that warrantor:

(a) To specify in writing to the dealer the dealer's

obligations, if any, for preparation, delivery, and warranty

service on its products.

(b) To compensate the dealer for warranty service required of

the dealer by the warrantor.

warrantor will pay for warranty work and the warrantor's time

allowances for the performance of that work. All of the following

apply to the schedule of compensation required under this

subdivision:

(i) It must include reasonable compensation for diagnostic work

and warranty labor.

(ii) Time allowances in the schedule for the diagnosis and

performance of warranty labor must be reasonable for the work to be

performed.

(iii) The compensation of a dealer for warranty labor shall

equal or exceed the lowest retail labor rates actually charged by

the dealer for similar nonwarranty labor if those rates are

consistent with the actual wage rates paid by the dealer and the

actual retail labor rates charged by the dealer in the community in

which the dealer is doing business.

(d) To reimburse the dealer for warranty parts at actual

wholesale cost, plus a minimum 30% handling charge and any freight

costs to return warranty parts to the warrantor.

(e) To deny dealer claims for warranty compensation only for

cause, including, but not limited to, performance of nonwarranty

repairs, material noncompliance with the warrantor's published

policies and procedures, lack of material documentation of claims,

fraud, or misrepresentation.

(2) A warrantor may conduct audits of the records of a dealer

that sells or leases its warranted products on a reasonable basis.

(3) A dealer shall submit warranty claims to a warrantor

within 45 days after completing warranty work on a warranted

product.

(4) A dealer shall immediately notify the warrantor orally or

in writing if the dealer is unable to perform warranty repairs on a

warranted product as soon as is reasonably possible, but not later

than 12 days after the delivery of the recreational vehicle to the

dealer for warranty repair. A warrantor that receives a

notification from a dealer under this subsection shall make

arrangements for another dealer or repair facility to perform the

warranty repairs identified by the dealer in the notification

within 12 days after receiving the notification.

(5) A warrantor shall approve or disapprove a warranty claim

on a warranted product in writing within 30 days after the date the

dealer submits the claim, if the claim is submitted in the manner

and in the form prescribed by the warrantor. If a claim that is

properly submitted is not specifically disapproved in writing by a

warrantor within that 30-day period, the claim is considered

approved by the warrantor and the warrantor shall pay the amount of

the claim to the dealer within 45 days after the dealer submitted

the claim.

Sec. 19. (1) A warrantor shall not do any of the following:

(a) Fail to perform all of its warranty obligations with

respect to a warranted product.

(b) In any written notice of a factory campaign to

recreational vehicle owners and dealers, fail to include the

expected date by which necessary parts and equipment, including

tires and chassis or chassis parts if required, will be available

to dealers to perform the campaign work. The warrantor shall

provide sufficient parts to the dealer to perform the campaign

work. If the number of parts provided to the dealer under this

subdivision exceed the dealer's requirements to perform the

campaign work, the dealer may return unused parts to the warrantor

for credit after completion of the campaign.

authorized repairs of warranted products damaged during the

manufacturing process, or damaged while in transit to the dealer if

the warrantor selected the carrier.

(d) Fail to compensate a dealer for authorized warranty

service under this section in accordance with the applicable

schedule of compensation provided to the dealer under section 17 if

the warranty service is performed in a timely and competent manner.

(e) Intentionally misrepresent in any way to a purchaser of a

warranted product that any warranty concerning the manufacture,

performance, or design of the warranted product is made by the

dealer either as a warrantor or co-warrantor.

(f) Require a dealer to make warranties to customers in any

manner related to the manufacture of a warranted product.

(2) A warrantor shall indemnify the dealer for any money paid

or costs incurred by a dealer in connection with a claim or cause

of action asserted against the dealer, to the extent that payment

or those costs are based on the negligence or intentional conduct

of the warrantor. A warrantor may not limit the obligation to

indemnify described in this subsection by agreement with the

dealer. The dealer shall provide a warrantor with a copy of any

claim or complaint in which an allegation described in this

subsection is made within 10 days after receiving that claim or

complaint.

(3) As used in this section and section 21:

(a) "Products" mean new recreational vehicles or parts,

accessories, or components of new recreational vehicles.

(b) "Warranted products" mean products subject to a warranty

from a specific warrantor.

Sec. 21. (1) A dealer shall not do any of the following:

(a) Fail to perform predelivery inspection of products, if

required, in a competent and timely manner.

(b) If a transient customer requests service work on a

recreational vehicle of a line-make that the dealer is authorized

to display and sell, fail to perform any warranty service work

authorized by a warrantor in a reasonably competent and timely

manner without good cause.

(d) Misrepresent the terms of any warranty.

(2) A dealer shall indemnify a warrantor for any money paid or

costs incurred by a warrantor in connection with a claim or cause

of action asserted against the warrantor, to the extent that

payment or those costs are based on the negligence or intentional

conduct of the dealer. A dealer may not limit the obligation to

indemnify described in this subsection by agreement with the

warrantor. The warrantor shall provide a dealer with a copy of any

claim or complaint in which an allegation described in this

subsection is made within 10 days after receiving that claim or

complaint.

Sec. 23. (1) All of the following apply if a new recreational

vehicle is damaged before it is shipped to a dealer, or is damaged

in transit to the dealer and the manufacturer selected the carrier

or means of transportation:

(a) The dealer shall notify the manufacturer of the damage

within the time period specified in the dealer agreement and do 1

of the following:

(i) In the notice, request authorization to replace the

components, parts, and accessories damaged, or otherwise correct

the damage, from the manufacturer.

(ii) Reject the recreational vehicle within the time period

specified in the dealer agreement.

(b) If the manufacturer refuses or fails to authorize repair

of the damage within 10 days after receiving notice under

subdivision (a), or if the dealer rejects the recreational vehicle

because of the damage within the time period specified in the

dealer agreement, ownership of the recreational vehicle reverts to

the manufacturer.

damaged recreational vehicle, but the dealer has no financial or

other obligation with respect to that recreational vehicle.

(2) A dealer agreement shall include a time period for

inspection and rejection of damaged recreational vehicles under

subsection (1) that is not less than 2 business days after the

physical delivery of the recreational vehicle to the dealer.

(3) If a dealer determines that a new recreational vehicle has

an unreasonable number of miles on its odometer at the time it is

delivered to the dealer, the dealer may reject that recreational

vehicle and ownership of the recreational vehicle reverts to the

manufacturer. However, if the number of miles on the odometer is

less than the sum of the distance between the dealer and the

manufacturer's factory or point of distribution plus 100 miles, the

dealer may not consider the number of miles on the odometer

unreasonable for purposes of this subsection.

Sec. 25. (1) A manufacturer may not coerce or attempt to

coerce a dealer to purchase a product or service that the dealer

did not order.

(2) A manufacturer may not coerce or attempt to coerce a

dealer to enter into any agreement with the manufacturer.

(3) A manufacturer may not coerce or attempt to coerce a

dealer to enter into an agreement with the manufacturer or any

other person that requires the dealer to submit its disputes to

binding arbitration or otherwise waive its rights or

responsibilities under this act.

(4) As used in this section, the term "coerce" includes, but

is not limited to, threatening to terminate or not renew a dealer

agreement without good cause; threatening to withhold line-makes or

other product lines the dealer is entitled to display and sell

under the dealer agreement; or delay delivery of recreational

vehicles as an inducement to amend the dealer agreement.

Sec. 27. (1) A dealer, manufacturer, or warrantor injured by

another party's violation of this act may bring a civil action in

circuit court to recover its actual damages. The court shall award

attorney's fees and costs to the prevailing party in a civil action

under this section.

(2) The venue for a civil action under this section involving

1 dealer is the county in which the dealer's business is located.

In an action involving more than 1 dealer, any county in which the

business of any dealer that is party to the action is located is a

proper venue for that action.

(3) Before bringing a civil action under this section, the

party bringing suit for an alleged violation of this act shall

serve a written demand for mediation on the offending party. The

demand for mediation shall include a brief statement of the dispute

and the relief sought by the party making the demand. The party

making the demand for mediation shall serve the demand by certified

mail to 1 of the following addresses:

(a) In an action between a dealer and a manufacturer, the

address stated in the dealer agreement between the parties.

(b) In an action between a dealer and a warrantor that is not

a manufacturer, the address stated in any agreement between the

parties.

offending dealer in the records of the department.

(4) Within 20 days after a demand for mediation is served

under subsection (3), the parties shall mutually select an

independent mediator who is approved by the department, and meet

with that mediator for the purpose of attempting to resolve the

dispute at a location in this state selected by the mediator. The

mediator may extend the date of the meeting for good cause shown by

either party or if the parties agree to the extension.

(5) The service of a demand for mediation under subsection (3)

tolls the time for the filing of any complaint, petition, protest,

or other action under this act until representatives of both

parties have met with the mediator selected under subsection (4)

for the purpose of attempting to resolve the dispute. If a

complaint, petition, protest, or other action is filed before that

meeting, the court shall enter an order suspending the proceeding

or action until the mediation meeting has occurred and may, if all

of the parties to the proceeding or action stipulate in writing

that they wish to continue to mediate under this section, enter an

order suspending the proceeding or action for as long a period as

the court considers appropriate. The court may modify, extend, or

revoke a suspension order issued under this subsection if it

considers that action appropriate.

(6) Each of the parties to the mediation under this section is

responsible for its own attorney fees. The parties shall equally

divide the cost of the mediator.

Sec. 29. (1) In addition to any remedy available under this

act or otherwise available by law, a manufacturer, warrantor, or

dealer may apply to a circuit court for the grant, after a hearing

and for cause shown, of a temporary or permanent injunction or

other equitable relief restraining any person from doing any of the

following:

(a) Acting as a dealer without a proper license.

(b) Violating or continuing to violate this act. A single

violation of this act is a sufficient basis for the court to grant

equitable relief under this section.

act.

(2) The court may not require a bond as a condition to the

grant of equitable relief under this section.

Enacting section 1. This act takes effect July 1, 2010.

Enacting section 2. This act does not take effect unless

Senate Bill No.____ or House Bill No. 4781(request no. 02963'09) of

the 95th Legislature is enacted into law.