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Session Laws, 1972
Volume 708, Page 1510   View pdf image
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1510                             Laws of Maryland                      [Ch. 544

them to any other person or persons or party or parties; but no
dealer, owner, partner, or stockholder may see SELL, transfer or as-
sign the franchise or any right thereunder without the consent of the
manufacturer, distributor, or factory branch, which consent shall
not be unreasonably withheld.

(b) Violation of any provisions of this section subjects any vio-
lator to whom the licensing provisions of this Part apply to the
administrative sanctions of this Part; and to criminal prosecution.

5-707.

(a) The Administration may refuse, suspend, or revoke any
license issued under this part if the Department finds that any
manufacturer, distributor, or factory branch which is licensed or
required to be licensed under this Part has:

(1)    Violated any provision of the THIS Part VII or is performing
or attempting to perform any act prohibited by this Part VII.

(2)    Failed to comply with any written warranty agreement.

(3) Failed to reasonable compensate any dealer who holds an

appointment as such from the manufacturer, or distributor of a

Class A or Class B vehicle, for labor and parts or expenses incurred

by any dealer with respect to manufacturer's warranty agreements
or preparation and delivery obligations performed by any dealer

or on a new vehicle. The failure of any manufacturer, distributor,

or factory branch to pay to its dealer for work performed by the

dealer in accordance with a manufacturer's warranty agreement, or

preparation and delivery obligations, a labor rate equal to the labor

rate normally charged by the dealer to his retail customers, for the

particular type of labor involved, shall be a prima facie violation

of this section FAILED TO REASONABLY COMPENSATE ANY
AUTHORIZED MOTOR VEHICLE DEALER WHO PERFORMS
WORK TO RECTIFY THE LICENSEE'S PRODUCT OR WAR-
RANTY DEFECTS, OR DELIVERY AND PREPARATION OB-
LIGATIONS. IN THE DETERMINATION OF WHAT CONSTI-
TUTES REASONABLE COMPENSATION UNDER THIS LAW,
THE FACTORS TO BE GIVEN CONSIDERATION SHALL IN-
CLUDE, AMONG OTHERS, THE COMPENSATION BEING PAID
BY OTHER LICENSEES TO THEIR DEALERS, THE PREVAIL-
ING WAGE RATE BEING PAID BY THE DEALERS, AND THE
PREVAILING LABOR RATE BEING CHARGED BY THE DEAL-
ERS, IN THE CITY OR COMMUNITY IN WHICH THE DEALER
IS DOING BUSINESS.

(b) The Administration shall suspend or revoke any license
issued under this Part only after a hearing. At least ten (10) days
prior to the date set for the hearing, the Department shall notify
the licensee in writing of any charge made and afford the licensee
an opportunity to be heard in person and by counsel in reference
thereto. The written notice shall be served by delivery to the licensee
by registered mail to the business address of the licensee of record
with the Department. The hearing on the charges shall be at a
time and place the Administration prescribes. The Administration
may subpoena and bring before it any person or documents, and
take the testimony of any person under oath in the manner pre-
scribed in judicial procedure in the courts of this State in civil


 

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Session Laws, 1972
Volume 708, Page 1510   View pdf image
 Jump to  
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