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New Franchising Laws

Motor Vehicles – California

A new California law, effective January 1, 2012, prohibits motor vehicle manufacturers from obtaining or enforcing against dealers any agreement that modifies or disclaims any of the manufacturer’s duties or obligation. The law also requires that manufacturers provide notice to the California New Motor Vehicle Board any time it changes an ownership interest.

Motor Vehicles – New York

A recent amendment to New York’s motor vehicle dealer law prohibits franchisors from requiring that dealers make monetary contributions to any franchise program or promotion without first receiving the dealer’s written consent to participate in such program.

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