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 – Not specified
ALASKA – Not specified
ARIZONA – A factory may require a dealer to purchase reasonable quantities of advertising materials, purchase reasonable quantities of special tools required to properly service a motor vehicle and undertake reasonable salesperson or service person training related to the motor vehicle as a condition of receiving a motor vehicle.
ARKANSAS – Dealer may choose vendor of renovation materials.
CALIFORNIA – “A required facility alteration, expansion, or addition shall not be deemed reasonable if it requires that the dealer purchase goods or services from a specific vendor when goods or services of substantially similar kind, quality, and general design concept are available from another vendor.” OEMs may require approval.
COLORADO – Not specified
CONNECTICUT – Local sourcing bill provision pending; check back for updates.
DELAWARE – Manufacturer may not require a dealer “to purchase non-line, make-specific goods, services or design elements from the manufacturer or its designated sources if the desired results can be produced through alternative means, except for parts or when necessary to protect the manufacturer’s trademark or brand name.”
FLORIDA – OEM may not require or coerce dealer to purchase goods or services from a vendor selected, identified, or designated by the OEM, or one of its parents, subsidiaries, divisions, or affiliates, by agreement, standard, policy, program, incentive provision, or otherwise, without making available to themotor vehicle dealer the option to obtain the goods or services of substantially similar design and quality from a vendor chosen by the motor vehicle dealer. motor vehicle dealer the option to obtain the goods or services of substantially similar design and quality from a vendor chosen by the motor vehicle dealer.
GEORGIA – Not specified
HAWAII – Not specified
IDAHO – Not specified
ILLINOIS – Manufacturer may not “require a motorcycle dealer to utilize manufacturer-approved floor fixtures for the display of any product that is not a product of the manufacturer” or “require a motorcycle dealer to purchase lighting fixtures that are to be installed in the dealership only from the manufacturer’s approved vendors.”
INDIANA – Dealer may choose vendor of renovation materials, subject to OEM approval.
IOWA – Not specified
KANSAS – Not specified
KENTUCKY – Not specified
LOUISIANA – Not specified
MAINE – Not specified
MARYLAND – Not specified
MASSACHUSETTS – Not specified
MICHIGAN – Not specified
MINNESOTA – Not specified
MISSISSIPPI – Not specified
MISSOURI – Not specified
MONTANA – Manufacturer may not require dealers to “purchase goods or services from a vendor identified, selected, or designated by a manufacturer, a factory branch, a distributor, a distributor branch, an importer, or an affiliate of the persons or entities listed without allowing the franchisee, after consultation with the franchisor, to obtain goods or services of like kind, quality, and design from a vendor that the franchisee chooses.”
NEBRASKA – Not specified
NEVADA – Not specified
NEW HAMPSHIRE – Manufacturer may not “require a dealer to purchase goods or services from a vendor selected, identified, or designated by a manufacturer, factory branch, distributor, distributor branch, or one of its affiliates by agreement, program, incentive provision, or otherwise without making available to the dealer the option to obtain the goods or services of substantially similar quality and overall design from a vendor chosen by the dealer and approved by the manufacturer, factory branch, distributor, or distributor branch; provided that such approval shall not be unreasonably withheld, and further provided that the dealer’s option to select a vendor shall not be available if the manufacturer or distributor provides substantial reimbursement for the goods or services offered. Substantial reimbursement is equal to or greater than 65 percent of the cost, which shall not be greater than the cost of reasonably available similar goods and services in close proximity to the dealer’s market.”
NEW JERSEY – Not specified
NEW MEXICO – Manufacturer may not “unreasonably withhold approval for a dealer to purchase substantially similar goods or services related to the construction, alteration, remodel or renovation of a dealership facility from vendors of the dealer’s choice. This subsection shall not be construed to allow a dealer or vendor to infringe upon or impair a manufacturer’s trademark rights or to erect or maintain a sign that does not conform to the manufacturer’s reasonable fabrication specifications and trademark usage guidelines.”
NEW YORK – Not specified
NORTH CAROLINA – Manufacturer must “provide to a dealer, if the goods or services to be supplied to the dealer by a vendor selected, identified, or designated by the manufacturer or distributor are signs or other franchisor elements to be purchased or leased to the dealer, the right to purchase or lease the signs or other franchisor image elements of similar quality and design from a vendor selected by the dealer”
NORTH DAKOTA – Not specified
OHIO – Manufacturer may not “unreasonably require or coerce a franchisee to lease or purchase a good or service from a specified vendor for purposes of expanding, constructing, or significantly modifying a facility without allowing the franchisee to choose a vendor that provides a good or service of a substantially similar quality and general appearance and that is approved by the franchisor. No franchisor shall unreasonably withhold approval of a vendor under division (A)(28) of this section.”
OKLAHOMA – Not specified
OREGON – “Except as provided in paragraph (b) of this subsection, a manufacturer, distributor or importer may not require a dealer to purchase goods or services for constructing, materially altering or remodeling a dealer facility from a vendor that the manufacturer, distributor or importer selects, identifies or designates without giving the dealer an option to obtain goods or services of substantially similar quality and design from a vendor that the dealer chooses, subject to the manufacturer’s, distributor’s or importer’s approval in advance. The manufacturer, distributor or importer may not withhold approval unreasonably. A dealer may not select a vendor from which to obtain goods and services for constructing a new dealer facility or materially altering or remodeling an existing dealer facility if a manufacturer, distributor or importer provides money, credit, an allowance or a reimbursement to compensate for all or a substantial portion of the cost of upgrading or improving a dealer facility or for using a specific material, good or service to upgrade or improve a dealer facility.”
PENNSYLVANIA – Manufacturer may not require dealer to “purchase a good or service from a vendor selected, identified or designated by a manufacturer, factory branch, distributor, distributor branch or an affiliate of a manufacturer, factory branch, distributor, distributor branch by agreement, program, incentive provision or other method if expanding, constructing or significantly modifying a facility without allowing the dealer the option to obtain a good or service of substantially similar quality from a vendor chosen by the dealer and approved by the manufacturer, which approval may not be unreasonably withheld.”
RHODE ISLAND – Not specified
SOUTH CAROLINA – Not specified
SOUTH DAKOTA – Not specified
TENNESSEE – Not specified
TEXAS – Not specified
UTAH – Not specified
VERMONT – Not specified
VIRGINIA – Not specified
WASHINGTON – Not specified
WEST VIRGINIA – Manufacturer may not “require a dealer to purchase goods or services from a vendor selected, identified or designated by a manufacturer, factory branch, distributor, distributor branch or one of its affiliates by agreement, program, incentive provision or otherwise without making available to the dealer the option to obtain the goods or services of substantially similar quality and overall design from a vendor chosen by the dealer and approved by the manufacturer, factory branch, distributor or distributor branch; provided that such approval may not be unreasonably withheld; provided, however, that the dealer’s option to select a vendor is not available if the manufacturer or distributor provides substantial reimbursement for the goods or services offered. Substantial reimbursement is equal to the difference in price of the goods and services from manufacturer’s proposed vendor and the motor vehicle dealer’s selected vendor; provided further, that the goods are not subject to the manufacturer or distributor’s intellectual property or trademark rights, or trade dress usage guidelines.”
WISCONSIN – Not specified
WYOMING – Not specified