HB 1159 2003
1	CHAMBER ACTION
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6	The Committee on Transportation recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to motor vehicle dealers; amending s.
12	320.60, F.S.; revising definitions; defining "service";
13	amending s. 320.64, F.S.; prohibiting certain acts by
14	licensee or applicant; providing for penalties, liability,
15	and remedies for violation; amending s. 320.642, F.S.;
16	revising provisions for evidence to be considered by the
17	Department of Highway Safety and Motor Vehicles in making
18	certain determinations of representation by preexisting
19	dealers; providing criteria and procedures for protest of
20	proposed addition or relocation of service-only
21	dealership; requiring license to permit service only in
22	certain circumstances; amending s. 320.643, F.S.; revising
23	criteria and procedures for transfer, sale, or disposal of
24	franchise agreements and acceptance or rejection by the
25	licensee of such transfer, sale, or disposal; prohibiting
26	certain acts by a licensee; amending s. 320.644, F.S.;
27	defining "executive management"; revising criteria and
28	procedures for change of executive management of motor
29	vehicle dealership and acceptance or rejection by the
30	licensee of such change; prohibiting certain acts by
31	licensee; amending s. 320.645, F.S.; revising restriction
32	upon ownership of dealership by licensee; amending s.
33	501.976, F.S.; revising specifications under the Florida
34	Deceptive and Unfair Trade Practices Act for
35	representation by dealer of vehicle as a demonstrator;
36	deleting the requirement that a demonstrator must have
37	been driven by a prospective customer; providing an
38	effective date.
39
40	Be It Enacted by the Legislature of the State of Florida:
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42	Section 1. Subsections (3), (10), and (13) of section
43	320.60, Florida Statutes, are amended, and subsection (16) is
44	added to said section, to read:
45	320.60 Definitions for ss. 320.61-320.70.--Whenever used
46	in ss. 320.61-320.70, unless the context otherwise requires, the
47	following words and terms have the following meanings:
48	(3) "Demonstrator" means any new motor vehicle which is
49	carried on the records of the dealer as a demonstrator and is
50	used by, being inspected or driven by the dealer or his or her
51	employees,or prospective customers for the purpose of
52	demonstrating vehicle characteristics in the sale or display of
53	motor vehicles sold by the dealer.
54	(10) "Motor vehicle" means any new automobile, motorcycle,
55	or truck, including all trucks, regardless of weight, including
56	"heavy truck" as defined in s. 320.01(10) and "truck" as defined
57	in s. 320.01(9),the equitable or legal title to which has never
58	been transferred by a manufacturer, distributor, importer, or
59	dealer to an ultimate purchaser; however, when legal title is
60	not transferred but possession of a motor vehicle is transferred
61	pursuant to a conditional sales contract or lease and the
62	conditions are not satisfied and the vehicle is returned to the
63	motor vehicle dealer, the motor vehicle may be resold by the
64	motor vehicle dealer as a new motor vehicle, provided the
65	selling motor vehicle dealer gives the following written notice
66	to the purchaser: "THIS VEHICLE WAS DELIVERED TO A PREVIOUS
67	PURCHASER." The purchaser shall sign an acknowledgment, a copy
68	of which is kept in the selling dealer's file.
69	(13) "Used motor vehicle" means any motor vehicle the
70	title to or possession of which has been transferred, at least
71	once, by afrom the person who first acquired it from the
72	manufacturer, distributor, importer, or dealer to an ultimate
73	purchaserand which is commonly known as "secondhand" within the
74	ordinary meaning thereof.
75	(16) "Service" means any maintenance or repair of any
76	motor vehicle or used motor vehicle that is sold or provided to
77	an owner, operator, or user pursuant to a motor vehicle
78	warranty, or any extension thereof, issued by the licensee.
79	Section 2. Subsections (33), (34), and (35) are added to
80	section 320.64, Florida Statutes, to read:
81	320.64 Denial, suspension, or revocation of license;
82	grounds.--A license of a licensee under s. 320.61 may be denied,
83	suspended, or revoked within the entire state or at any specific
84	location or locations within the state at which the applicant or
85	licensee engages or proposes to engage in business, upon proof
86	that the section was violated with sufficient frequency to
87	establish a pattern of wrongdoing, and a licensee or applicant
88	shall be liable for claims and remedies provided in ss. 320.695
89	and 320.697 for any violation of any of the following
90	provisions. A licensee is prohibited from committing the
91	following acts:
92	(33) The applicant or licensee has attempted to sell or
93	lease, or has sold or leased, used motor vehicles at retail of a
94	line-make that is the subject of any franchise agreement with a
95	motor vehicle dealer in this state, other than heavy trucks with
96	a net weight of more than 8,000 pounds.
97	(34) The applicant or licensee, after the effective date
98	of this subsection, has included in any franchise agreement with
99	a motor vehicle dealer a mandatory obligation or requirement of
100	the motor vehicle dealer to purchase, sell, or lease, or offer
101	for purchase, sale, or lease, any quantity of used motor
102	vehicles.
103	(35) The applicant or licensee has refused to assign
104	allocation earned by a motor vehicle dealer, or has refused to
105	sell motor vehicles to a motor vehicle dealer, because the motor
106	vehicle dealer has failed or refused to sell, lease, or certify
107	a certain quantity of used motor vehicles prescribed by the
108	licensee.
109
110	A motor vehicle dealer who can demonstrate that a violation of,
111	or failure to comply with, any of the preceding provisions by an
112	applicant or licensee will or can adversely and pecuniarily
113	affect the complaining dealer, shall be entitled to pursue all
114	of the remedies, procedures, and rights of recovery available
115	under ss. 320.695 and 320.697.
116	Section 3. Paragraph (b) of subsection (2) and subsection
117	(3) of section 320.642, Florida Statutes, are amended, and
118	subsection (6) is added to said section, to read:
119	320.642 Dealer licenses in areas previously served;
120	procedure.--
121	(2)
122	(b) In determining whether the existing franchised motor
123	vehicle dealer or dealers are providing adequate representation
124	in the community or territory for the line-make, the department
125	may consider evidence which may include, but is not limited to:
126	1. The impact of the establishment of the proposed or
127	relocated dealer on the consumers, public interest, existing
128	dealers, and the licensee; provided, however, that financial
129	impact may only be considered with respect to the protesting
130	dealer or dealers.
131	2. The size and permanency of investment reasonably made
132	and reasonable obligations incurred by the existing dealer or
133	dealers to perform their obligations under the dealer agreement.
134	3. The reasonably expected market penetration of the line-
135	make motor vehicle for the community or territory involved,
136	after consideration of all factors which may affect said
137	penetration, including, but not limited to, demographic factors
138	such as age, income, education, size class preference, product
139	popularity, retail lease transactions, or other factors
140	affecting sales to consumers of the community or territory.
141	4. Any actions by the licensees in denying its existing
142	dealer or dealers of the same line-make the opportunity for
143	reasonable growth, market expansion, or relocation, including
144	the availability of line-make vehicles in keeping with the
145	reasonable expectations of the licensee in providing an adequate
146	number of dealers in the community or territory.
147	5. Any attempts by the licensee to coerce the existing
148	dealer or dealers into consenting to additional or relocated
149	franchises of the same line-make in the community or territory.
150	6. Distance, travel time, traffic patterns, and
151	accessibility between the existing dealer or dealers of the same
152	line-make and the location of the proposed additional or
153	relocated dealer.
154	7. Whether benefits to consumers will likely occur from
155	the establishment or relocation of the dealership which the
156	protesting dealer or dealers provecannot be obtained by other
157	geographic or demographic changes or expected changes in the
158	community or territory.
159	8. Whether the protesting dealer or dealers are in
160	substantial compliance with their dealer agreement.
161	9. Whether there is adequate interbrand and intrabrand
162	competition with respect to said line-make in the community or
163	territory and adequately convenient consumer care for the motor
164	vehicles of the line-make, including the adequacy of sales and
165	service facilities.
166	10. Whether the establishment or relocation of the
167	proposed dealership appears to be warranted and justified based
168	on economic and marketing conditions pertinent to dealers
169	competing in the community or territory, including anticipated
170	future changes.
171	11. The volume of registrations and service business
172	transacted by the existing dealer or dealers of the same line-
173	make in the relevant community or territory of the proposed
174	dealership.
175	(3) An existing franchised motor vehicle dealer or dealers
176	shall have standing to protest a proposed additional or
177	relocated motor vehicle dealer where the existing motor vehicle
178	dealer or dealers have a franchise agreement for the same line-
179	make vehicle to be sold or servicedby the proposed additional
180	or relocated motor vehicle dealer and are physically located so
181	as to meet or satisfy any of the following requirements or
182	conditions:
183	(a) If the proposed additional or relocated motor vehicle
184	dealer is to be located in a county with a population of less
185	than 300,000 according to the most recent data of the United
186	States Census Bureau or the data of the Bureau of Economic and
187	Business Research of the University of Florida:
188	1. The proposed additional or relocated motor vehicle
189	dealer is to be located in the area designated or described as
190	the area of responsibility, or such similarly designated area,
191	including the entire area designated as a multiple-point area,
192	in the franchise agreement or in any related document or
193	commitment with the existing motor vehicle dealer or dealers of
194	the same line-make as such agreement existed upon October 1,
195	1988;
196	2. The existing motor vehicle dealer or dealers of the
197	same line-make have a licensed franchise location within a
198	radius of 20 miles of the location of the proposed additional or
199	relocated motor vehicle dealer; or
200	3. Any existing motor vehicle dealer or dealers of the
201	same line-make can establish that during any 12-month period of
202	the 36-month period preceding the filing of the licensee's
203	application for the proposed dealership, such dealer or its
204	predecessor made 25 percent of its retail sales of new motor
205	vehicles to persons whose registered household addresses were
206	located within a radius of 20 miles of the location of the
207	proposed additional or relocated motor vehicle dealer; provided
208	such existing dealer is located in the same county or any county
209	contiguous to the county where the additional or relocated
210	dealer is proposed to be located.
211	(b) If the proposed additional or relocated motor vehicle
212	dealer is to be located in a county with a population of more
213	than 300,000 according to the most recent data of the United
214	States Census Bureau or the data of the Bureau of Economic and
215	Business Research of the University of Florida:
216	1. Any existing motor vehicle dealer or dealers of the
217	same line-make have a licensed franchise location within a
218	radius of 12.5 miles of the location of the proposed additional
219	or relocated motor vehicle dealer; or
220	2. Any existing motor vehicle dealer or dealers of the
221	same line-make can establish that during any 12-month period of
222	the 36-month period preceding the filing of the licensee's
223	application for the proposed dealership, such dealer or its
224	predecessor made 25 percent of its retail sales of new motor
225	vehicles to persons whose registered household addresses were
226	located within a radius of 12.5 miles of the location of the
227	proposed additional or relocated motor vehicle dealer; provided
228	such existing dealer is located in the same county or any county
229	contiguous to the county where the additional or relocated
230	dealer is proposed to be located.
231	(6) When a proposed addition or relocation concerns a
232	dealership that performs or is to perform only service, as
233	defined in s. 320.60(16), and will not or does not sell or lease
234	new motor vehicles, as defined in s. 320.60(15), the proposal
235	shall be subject to notice and protest pursuant to the
236	provisions of this section.
237	(a) Standing to protest the addition or relocation of a
238	service-only dealership shall be limited to those instances in
239	which the applicable mileage requirement established in
240	subparagraphs (3)(a)2. and (3)(b)1. is met.
241	(b) The addition or relocation of a service-only
242	dealership shall not be subject to protest if:
243	1. The applicant for the service-only dealership location
244	is an existing motor vehicle dealer of the same line-make as the
245	proposed additional or relocated service-only dealership;
246	2. There is no existing dealer of the same line-make
247	closer than the applicant to the proposed location of the
248	additional or relocated service-only dealership; and
249	3. The proposed location of the additional or relocated
250	service-only dealership is at least 7 miles from all existing
251	motor vehicle dealerships of the same line-make, other than
252	motor vehicle dealerships owned by the applicant.
253	(c) In determining whether existing franchised motor
254	vehicle dealers are providing adequate representations in the
255	community or territory for the line-make in question in a
256	protest of the proposed addition or relocation of a service-only
257	dealership, the department may consider the elements set forth
258	in paragraph (2)(b), provided:
259	1. With respect to subparagraph (2)(b)1., only the impact
260	as it relates to service may be considered;
261	2. Subparagraph (2)(b)3. shall not be considered;
262	3. With respect to subparagraph (2)(b)9., only service
263	facilities shall be considered; and
264	4. With respect to subparagraph (2)(b)11., only the volume
265	of service business transacted shall be considered.
266	(d) If an application for a service-only dealership is
267	granted, the department shall issue a license which permits only
268	service, as defined in s. 320.60(16), and does not permit the
269	selling or leasing of new motor vehicles, as defined in s.
270	320.60(15). If a service-only dealership subsequently seeks to
271	sell new motor vehicles at its location, the notice and protest
272	provisions of this section shall apply.
273	Section 4. Section 320.643, Florida Statutes, is amended
274	to read:
275	320.643 Transfer, assignment, or sale of franchise
276	agreements.--
277	(1)(a) Notwithstanding the terms of any franchise
278	agreement, a licensee shall not, by contract or otherwise, fail
279	or refuse to give effect to, prevent, prohibit, or penalize or
280	attempt to refuse to give effect to, prohibit, or penalize any
281	motor vehicle dealer from selling, assigning, transferring,
282	alienating, or otherwise disposing of its franchise agreement to
283	any other person or persons, including a corporation established
284	or existing for the purpose of owning or holding a franchise
285	agreement, unless the licensee proves at a hearing pursuant to a
286	complaint filed by a motor vehicle dealer under this section
287	that such sale, transfer, alienation, or other disposition is to
288	a person who is not, or whose controlling executive management
289	is not, of good moral character or does not meet the written,
290	reasonable, and uniformly applied standards or qualifications of
291	the licensee relating to financial qualifications of the
292	transferee and business experience of the transferee or the
293	transferee's executive management. A motor vehicle dealer who
294	desires to sell, assign, transfer, alienate, or otherwise
295	dispose of a franchise shall notify, or cause the proposed
296	transferee to notify, the licensee, in writing, setting forth
297	the prospective transferee's name, address, financial
298	qualifications, and business experience during the previous 5
299	years. A licensee who receives such notice may, within 60 days
300	following such receipt, notify the motor vehicle dealer, in
301	writing, that the proposed transferee is not a person qualified
302	to be a transferee under this section and setting forth the
303	material reasons for such rejection. Failure of the licensee to
304	notify the motor vehicle dealer within the 60-day period of such
305	rejection shall be deemed an approval of the transfer. No such
306	transfer, assign, or sale shall be valid unless the transferee
307	agrees in writing to comply with all requirements of the
308	franchise then in effectA motor vehicle dealer shall not
309	transfer, assign, or sell a franchise agreement to another
310	person unless the dealer first notifies the licensee of the
311	dealer's decision to make such transfer, by written notice
312	setting forth the prospective transferee's name, address,
313	financial qualification, and business experience during the
314	previous 5 years. The licensee shall, in writing, within 60 days
315	after receipt of such notice, inform the dealer either of the
316	licensee's approval of the transfer, assignment, or sale or of
317	the unacceptability of the proposed transferee, setting forth
318	the material reasons for the rejection. If the licensee does not
319	so inform the dealer within the 60-day period, its approval of
320	the proposed transfer is deemed granted. No such transfer,
321	assignment, or sale will be valid unless the transferee agrees
322	in writing to comply with all requirements of the franchise then
323	in effect. For the purposes of this section, the refusal by the
324	licensee to accept a proposed transferee who is of good moral
325	character and who otherwise meets the written, reasonable, and
326	uniformly applied standards or qualifications, if any, of the
327	licensee relating to financial qualifications of the transferee
328	and the business experience of the transferee or the
329	transferee's executive management is presumed to be
330	unreasonable.
331	(b)A motor vehicle dealer whose proposed sale is rejected
332	may, within 60 days following such receipt of such rejection,
333	file with the department a complaint for a determination that
334	the proposed transferee has been rejected in violation of this
335	section. The licensee has the burden of proof with respect to
336	all issues raised by such complaint. The department shall
337	determine, and enter an order providing, that the proposed
338	transferee is either qualified or is not and cannot be qualified
339	for specified reasons, or the order may provide the conditions
340	under which a proposed transferee would be qualified. If the
341	licensee fails to file such a response to the motor vehicle
342	dealer's complaint within 30 days after receipt of the
343	complaint, unless the parties agree in writing to an extension,
344	or if the department, after a hearing, renders a decision other
345	than one disqualifying the proposed transferee, the franchise
346	agreement between the motor vehicle dealer and the licensee
347	shall be deemed amended to incorporate such transfer or amended
348	in accordance with the determination and order rendered,
349	effective upon compliance by the proposed transferee with any
350	conditions set forth in the determination or order.
351	(2)(a)Notwithstanding the terms of any franchise
352	agreement, a licensee shall not, by contract or otherwise, fail
353	or refuse to give effect to, prevent, prohibit, or penalize, or
354	attempt to refuse to give effect to, prevent, prohibit, or
355	penalize, any motor vehicle dealer or any proprietor, partner,
356	stockholder, owner, or other person who holds or otherwise owns
357	an interest therein from selling, assigning, transferring,
358	alienating, or otherwise disposing of, in whole or in part, the
359	equity interest of any of them in such motor vehicle dealer to
360	any other person or persons, including a corporation established
361	or existing for the purpose of owning or holding the stock or
362	ownership interests of other entities, unless the licensee
363	proves at a hearing pursuant to a complaint filed by a motor
364	vehicle dealer underthis section that such sale, transfer,
365	alienation, or other disposition is to a person who is not, or
366	whose controlling executive management is not, of good moral
367	character. A motor vehicle dealer, or any proprietor, partner,
368	stockholder, owner, or other person who holds or otherwise owns
369	an interest in the motor vehicle dealer, who desires to sell,
370	assign, transfer, alienate, or otherwise dispose of any interest
371	in such motor vehicle dealer shall notify, or cause the proposed
372	transferee to so notify, the licensee, in writing, of the
373	identity and address of the proposed transferee. A licensee who
374	receives such notice may, within 60 days following such receipt,
375	notify the motor vehicle dealer in writing that the proposed
376	transferee is not a person qualified to be a transferee under
377	this section and setting forth the material reasons for such
378	rejection. Failure of the licensee to notify the motor vehicle
379	dealer within the 60-day period of such rejection shall be
380	deemed an approval of the transfer. Any person whose proposed
381	sale of stock is rejected may file within 60 days of receipt of
382	such rejection a complaint with the department alleging that the
383	rejection was in violation of the law or the franchise
384	agreement. The licensee has the burden of proof with respect to
385	all issues raised by such complaint. The department shall
386	determine, and enter an order providing, that the proposed
387	transferee either is qualified or is not and cannot be qualified
388	for specified reasons; or the order may provide the conditions
389	under which a proposed transferee would be qualified. If the
390	licensee fails to file a response to the motor vehicle dealer's
391	complaint within 30 days of receipt of the complaint, unless the
392	parties agree in writing to an extension, or if the department,
393	after a hearing, renders a decision on the complaint other than
394	one disqualifying the proposed transferee, the transfer shall be
395	deemed approved in accordance with the determination and order
396	rendered, effective upon compliance by the proposed transferee
397	with any conditions set forth in the determination or order.
398	(3)(b)During the pendency of any such hearing, the
399	franchise agreement of the motor vehicle dealer shall continue
400	in effect in accordance with its terms. The department shall
401	expedite any determination requested under this section.
402	(4)(3)Notwithstanding the terms of any franchise
403	agreement, the acceptance by the licensee of the proposed
404	transferee shall not be unreasonably withheld. For the purposes
405	of this section, the refusal by the licensee to accept a
406	proposed transferee who satisfies the criteria set forth in
407	subsection (1) or subsection (2) is presumed to be unreasonable.
408	(5) It shall be a violation of this section for the
409	licensee to reject or withhold approval of a proposed transfer
410	unless the licensee can prove in any court of competent
411	jurisdiction in defense of any claim brought pursuant to s.
412	320.697 that, in fact, the rejection or withholding of approval
413	of the proposed transfer was reasonable. The determination of
414	whether such rejection or withholding was reasonable shall be
415	based on an objective standard. Alleging the permitted statutory
416	grounds by the licensee in the written rejection of the proposed
417	transfer shall not protect the licensee from liability for
418	violating this section.
419	Section 5. Section 320.644, Florida Statutes, is amended
420	to read:
421	320.644 Change of executive management control; objection
422	by licensee; procedure.--
423	(1) Notwithstanding the terms of any franchise agreement,
424	a licensee shall not, by contract or otherwise, fail or refuse
425	to give effect to, prevent, prohibit, or penalize, or attempt to
426	refuse to give effect to, prevent, prohibit, or penalize any
427	motor vehicle dealer from changing its executive management
428	control unless the licensee proves at a hearing pursuant to a
429	complaint filed by a motor vehicle dealer under this section
430	that such change is to a person who is not of good moral
431	character or who doesNo licensee shall prohibit or prevent, or
432	attempt to prohibit or prevent, any motor vehicle dealer from
433	changing the executive management control of the motor vehicle
434	dealer unless the proposed change of executive management
435	control of the motor vehicle dealer is to a person or persons
436	not of good moral character or who donot meet the written,
437	reasonable, and uniformly applied standards of the licensee
438	relating to the business experience of executive management
439	required by the licensee of its motor vehicle dealers. A motor
440	vehicle dealer who desires to change its executive management
441	control shall notify the licensee by written notice, setting
442	forth the name, address, and business experience of the proposed
443	executive management. A licensee who receives such notice shall,
444	in writingmay, within 60 days following such receipt, inform
445	the motor vehicle dealer either of the approval of the proposed
446	change in executive management or the unacceptability of the
447	proposed change. If the licensee does not so inform the motor
448	vehicle dealer within the 60-day period, its approval of the
449	proposed change is deemed granted. A motor vehicle dealer whose
450	proposed change is rejected may, within 60 days following
451	receipt of such rejection, file with the department a complaint
452	for a determination that the proposed change of executive
453	management has been rejected in violation of this section. The
454	licensee has the burden of proof with respect to all issues
455	raised by such complaint. The department shall determine, and
456	enter an order providing, that the person proposed for the
457	change is either qualified or is not and cannot be qualified for
458	specific reasons, or the order may provide the conditions under
459	which a proposed executive manager would be qualified. If the
460	licensee fails to file a response to the motor vehicle dealer's
461	complaint within 30 days after receipt of the complaint, unless
462	the parties agree in writing to an extension, or if the
463	department after a hearing renders a decision other than one
464	disqualifying the person proposed for the change, the franchise
465	agreement between the motor vehicle dealer and the licensee
466	shall be deemed amended to incorporate such change or amended in
467	accordance with the determination or order rendered, effective
468	upon compliance by the person proposed for the change with any
469	conditions set forth in the determination or orderfile with the
470	department a verified complaint for a determination that the
471	proposed change of executive management will result in executive
472	management control by persons who are not of good moral
473	character or who do not meet such licensee's standards. The
474	licensee has the burden of proof with respect to all issues
475	raised by such verified complaint. If the licensee fails to file
476	such verified complaint within such 60-day period or if the
477	department, after a hearing, dismisses the complaint, the
478	franchise agreement between the motor vehicle dealer and the
479	licensee shall be deemed amended to incorporate such change or
480	amended in accordance with the decision rendered. For the
481	purpose of this section, the mere termination of employment of
482	executive management, including the dealer/operator or such
483	similarly designated person or persons, shall not be deemed to
484	be a change in executive management or a transfer of the
485	franchise. Provided, however, the designation of replacement
486	executive management shall be subject to this section.
487	(2) For the purpose of this section, the mere termination
488	of employment of executive management shall not be deemed to be
489	a change in executive management or a transfer of the franchise;
490	however, the proposal of replacement executive management shall
491	be subject toDuring the pendency of any such hearing, the
492	franchise agreement of the motor vehicle dealer shall continue
493	in effect in accordance with its terms. The department shall
494	expedite any determination requested underthis section.
495	(3) For the purpose of this section, the term "executive
496	management" means, and is limited to, the person or persons
497	designated under the franchise agreement as the dealer-operator,
498	executive manager, or similarly designated persons who are
499	responsible for the overall day-to-day operation of the
500	dealership. A motor vehicle dealer may change all other
501	dealership personnel without seeking approval from the licensee.
502	(4) During the pendency of any such hearing, the franchise
503	agreement of the motor vehicle dealer shall continue in effect
504	in accordance with its terms. The department shall expedite any
505	determination requested under this section.
506	(5) It shall be a violation of this section for the
507	licensee to reject or withhold approval of a proposed transfer
508	unless the licensee can prove in any court of competent
509	jurisdiction in defense of any claim brought pursuant to s.
510	320.697 that, in fact, the rejection or withholding of approval
511	of the proposed transfer was reasonable. The determination of
512	whether such rejection or withholding was reasonable shall be
513	based on an objective standard. Alleging the permitted statutory
514	grounds by the licensee in the written rejection of the proposed
515	transfer shall not protect the licensee from liability for
516	violating this section.
517	Section 6. Subsection (4) of section 320.645, Florida
518	Statutes, is amended to read:
519	320.645 Restriction upon ownership of dealership by
520	licensee.--
521	(4) Nothing in this chaptersection shall prohibit a
522	distributorlicensee-distributor as defined in s. 320.60(5) or
523	common entitythat is not a manufacturer, a division of a
524	manufacturer, an entity that is controlled by a manufacturer, or
525	a common entity of a manufacturer, and that is not owned, in
526	whole or in part, directly or indirectly, by a manufacturer, as
527	defined in s. 320.60(9), and that has owned and operated a motor
528	vehicle dealership in this state on or before July 1, 1996,
529	other than a motor vehicle dealership permitted by paragraph
530	(1)(b), from receiving a license or licenseeas defined in s.
531	320.27 andwhile owning and operating a motor vehicle dealership
532	or dealerships that sell or servicesells or servicesmotor
533	vehicles other than any line-make of motor vehicles distributed
534	by the distributorlicensee-distributor.
535	Section 7. Subsection (2) of section 501.976, Florida
536	Statutes, is amended to read:
537	501.976 Actionable, unfair, or deceptive acts or
538	practices.--It is an unfair or deceptive act or practice,
539	actionable under the Florida Deceptive and Unfair Trade
540	Practices Act, for a dealer to:
541	(2) Represent directly or indirectly that a vehicle is a
542	demonstrator unless the vehicle was driven by prospective
543	customers of a dealership selling the vehicle and such vehicle
544	complies with the definition of a demonstrator in s. 320.60(3).
545
546	In any civil litigation resulting from a violation of this
547	section, when evaluating the reasonableness of an award of
548	attorney's fees to a private person, the trial court shall
549	consider the amount of actual damages in relation to the time
550	spent.
551	Section 8. This act shall take effect upon becoming a law.
552