PARRIS N. GLENDENING, Governor                             Ch. 583

(G) STATE OR FEDERAL REGISTRATION OF INTELLECTUAL PROPERTY IS
PRIMA FACIE EVIDENCE THAT THE INTELLECTUAL PROPERTY IS A TRADEMARK OR
TRADE NAME

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1996.

Approved May 23, 1996.

CHAPTER 583
(Senate Bill 428)

AN ACT concerning

Vehicle Laws - Vehicle Dealer Franchises and Manufacturers, Distributors, and Factory

Branches

FOR the purpose of prohibiting a manufacturer, distributor, or factory branch from
imposing certain requirements on a dealer relating to the utilization of the dealer's
facilities or the adherence by the dealer to certain performance standards;
establishing certain requirements for performance standards: prohibiting a
franchise agreement or other contract offered to a dealer by a manufacturer,
distributor, or factory branch from containing certain provisions; defining a certain
term to include certain actions by a manufacturer, distributor, or factory branch
thereby prohibiting those actions during the term of the franchise and upon its
renewal except under certain circumstances; authorizing a dealer, without the prior
consent of a manufacturer, distributor, or factory branch, to designate a successor to
the dealership in the event of the death or incapacity of the dealer; requiring the
dealer to provide certain notice of the designation of a successor to the
manufacturer, distributor, or factory branch; prohibiting a manufacturer,
distributor, or factory branch from exercising a certain right of first refusal under
certain circumstances or preventing the dealer from designating a successor under
this Act; providing for a certain hearing when a manufacturer, distributor, or factory
branch objects to the designation of a successor by a dealer under this Act and
providing for the right to appeal an adverse ruling of the hearing officer authorizing
a designated family member to succeed a dealer in the ownership or operation of
the dealership under certain circumstances; requiring the designated family member
to provide a certain notice; requiring the designated family member to provide
certain information; establishing that a manufacturer, distributor, or factory branch
may refuse to honor a franchise agreement with a designated family member for
good cause; requiring a manufacturer, distributor, or factory branch to provide
notice to a designated family member in certain situations; authorizing dealers to
make certain designations; establishing a general right to a hearing to resolve
certain disputes between a dealer or designated dealer successor and a
manufacturer, distributor, or factory branch and requiring the hearing officer to
consider certain facts in making a determination regarding the dispute; defining

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