Monday, December 19, 2016 | Holly Wagner
Please refer to Governing Statutes for more information. “Not specified” indicates that an issue is not addressed specifically in the particular statutes. Please send any updates to editors@dealernews.com
ALABAMA – The area within a radius of 20 miles around an existing dealer or the area of responsibility defined in the franchise, whichever is greater; except that, where a manufacturer is seeking to establish an additional new motor vehicle dealer and there are one or more existing new motor vehicle dealers of the same line make within a 10-mile radius of the proposed dealer site, the relevant market area shall in all instances be the area within a radius of 10 miles around an existing dealer. OEM may not “assign or change a dealer’s area of responsibility under the franchise or dealer agreement arbitrarily or without due regard to the present or projected future pattern of motor vehicle sales and registrations within the dealer’s market area and without first having provided the dealer with written notice of the change in the dealer’s area of responsibility and a detailed description of the change and reasons therefor.”
ALASKA – not specified
ARIZONA – 10 miles “by the shortest street route,” 20 miles in counties with fewer than 200,000 residents. “Area of responsibility” means the area surrounding an individual dealer that the factory designates as that dealer’s individual primary geographic territory for the purpose of marketing, promoting, selling and leasing new motor vehicles. In the absence of the factory designated area, the area of responsibility is that geographical area surrounding a dealer that lies closer to that dealer than to other dealers of the same line-make.
ARKANSAS – 10 mile radius; change of DAT requires 30 days’ notice.
CALIFORNIA – Generally, the RMA “is any area within a radius of 10 miles from the site of a potential new dealership.” For purposes of allotments, “a geographic area specified in a franchise that is used by the franchisor for the purpose of evaluating the franchisee’s performance of its sales and service obligations.”