PARRIS N. GLENDENING, Governor

H.B. 1214

AS A CONDITION TO THE GRANT RENEWAL OR CONTINUATION OF A FRANCHISE
AGREEMENT, TO: UNDERUTILIZE FACILITIES OWNED BY THE DEALER IF THE
UNDERUTILIZATION WOULD HAVE A MATERIAL ADVERSE IMPACT ON THE
BUSINESS OF THE DEALER

(1) ELIMINATE FROM THE USE OF THE DEALER'S FACILITIES A
DEALERSHIP FOR WHICH THE DEALER HAS A FRANCHISE AGREEMENT TO UTILIZE
THE FACILITIES AS OF MARCH 1, 1996; OR

(2) MATERIALLY CHANGE THE DEALER'S FACILITIES OR METHOD OF
CONDUCTING BUSINESS IF THE CHANGE WOULD IMPOSE SUBSTANTIAL FINANCIAL
HARDSHIP ON THE BUSINESS OF THE DEALER.

(E)     (1) A MANUFACTURER, DISTRIBUTOR, OR FACTORY BRANCH,
WHETHER DIRECTLY OR THROUGH AN AGENT, EMPLOYEE OR REPRESENTATIVE,
MAY NOT REQUIRE OR COERCE A DEALER TO ADHERE TO PERFORMANCE
STANDARDS THAT ARE NOT APPLIED UNIFORMLY TO OTHER DEALERS
FRANCHISED IN THE STATE BY THAT MANUFACTURER, DISTRIBUTOR, OR FACTORY
BRANCH SIMILARLY SITUATED DEALERS.

(2) A PERFORMANCE STANDARD OR PROGRAM FOR MEASURING
DEALERSHIP PERFORMANCE THAT MAY HAVE A MATERIAL EFFECT ON A DEALER
AND THE APPLICATION OF THE STANDARD OR PROGRAM BY A MANUFACTURER,
DISTRIBUTOR, OR FACTORY BRANCH SHALL BE FAIR, REASONABLE. EQUITABLE,
AND BASED ON ACCURATE INFORMATION.

(3) (I) IF THE PERFORMANCE STANDARD IS BASED ON A SURVEY, IT
MUST BE SHOWN THAT:

1.       THE SURVEY WAS DESIGNED WITH EXPERTS:

2.        THE PROPER UNIVERSE WAS EXAMINED:

3.        A REPRESENTATIVE SAMPLE WAS CHOSEN: AND

4.        THE DATA WAS ACCURATELY REPORTED.

(II) THE MANUFACTURER, DISTRIBUTOR, OR FACTORY BRANCH
SHALL ESTABLISH THE OBJECTIVITY OF THE SURVEY PROCESS AND PROVIDE THIS
INFORMATION TO ANY DEALER OF THE SAME LINE MAKE COVERED BY THE
SURVEY ON REQUEST.

(F)     A FRANCHISE AGREEMENT OR OTHER CONTRACT OFFERED TO A
DEALER BY A MANUFACTURER, DISTRIBUTOR, OR FACTORY BRANCH MAY NOT
CONTAIN ANY PROVISION REQUIRING:

(1) ARBITRATION OF DISPUTES AT THE SOLE OPTION OF A PARTY;

(2) REFERRAL OF DISPUTES TO A DEALER BOARD OR COURT IN
ANOTHER JURISDICTION;

(3) PAYMENT BY THE DEALER OF LEGAL EXPENSES INCURRED BY THE
MANUFACTURER, DISTRIBUTOR, OR FACTORY BRANCH; OR

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