WILLIAM DONALD SCHAEFER, Governor                         Ch. 498

CHAPTER 498
(Senate Bill 556)

AN ACT concerning

Motor Vehicle Manufacturers, Distributors, and Factory Branches - Payments to

Dealers - Chargebacks

FOR the purpose of requiring a motor vehicle manufacturer, distributor, or factory
branch to compensate a motor vehicle dealer for certain services; requiring the
payment of the., compensation to be made within a certain time; prohibiting
permitting the chargeback of certain claims to a motor vehicle dealer by a
manufacturer, distributor, or factory branch except under certain circumstances;
specifying certain time restrictions for the issuance of chargebacks from a motor
vehicle manufacturer, distributor, or a factory branch to a motor vehicle dealer;
providing that manufacturers, distributors, and factory branches have the
responsibility of showing that a dealer's claim is intentionally false or fraudulent for
certain purposes; and generally relating to payments and chargebacks between
motor vehicle manufacturers, distributors, and factory branches and motor vehicle
dealers.

BY repealing and reenacting, with amendments,
Article - Transportation
Section 15-212(c)
Annotated Code of Maryland
(1992 Replacement Volume and 1993 Supplement)

BY adding to

Article - Transportation

Section 15-212.1

Annotated Code of Maryland

(1992 Replacement Volume and 1993 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Transportation

15-212.

(c) (1) The following factors, as they exist in the city or community in which the
dealer is doing business, shall be included among those considered in determining under
subsection (b)(3) of this section whether a dealer has been reasonably compensated:

(i) The compensation being paid by other licensees to their dealers;

(ii) The prevailing wage rate being paid by these dealers; and

(iii) The prevailing labor rate being charged by these dealers.

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