| 1 | A bill to be entitled |
| 2 | An act relating to recreational vehicle dealers and |
| 3 | manufacturers; creating s. 320.3201, F.S.; providing |
| 4 | legislative intent; creating s. 320.3202, F.S.; providing |
| 5 | definitions; creating s. 320.3203, F.S.; providing |
| 6 | requirements for a manufacturer/dealer agreement; |
| 7 | requiring designation of the area of sales responsibility; |
| 8 | providing conditions for sales outside the dealer's area |
| 9 | of sales responsibility; creating s. 320.3204, F.S.; |
| 10 | providing requirements for sale by manufacturers and |
| 11 | distributors; creating s. 320.3205, F.S.; providing |
| 12 | requirements and procedures for termination, cancellation, |
| 13 | or nonrenewal of an agreement by a manufacturer or a |
| 14 | dealer; providing for the repurchase by the manufacturer |
| 15 | of vehicles, accessories, and parts and equipment, tools, |
| 16 | signage, and machinery; creating s. 320.3206, F.S.; |
| 17 | providing for change in ownership by a dealer; requiring |
| 18 | notice to the manufacturer; providing requirements for |
| 19 | rejection by the manufacturer; providing for a dealer to |
| 20 | name a family member as a successor in case of retirement, |
| 21 | incapacitation, or death of the dealer; providing |
| 22 | requirements for rejection of the successor by the |
| 23 | manufacturer; creating s. 320.3207, F.S.; providing |
| 24 | requirements for warrantors, manufacturers, and dealers |
| 25 | with respect to warranties; providing responsibilities; |
| 26 | providing requirements for compensation of the dealer; |
| 27 | authorizing warranty audits by the warrantor; requiring |
| 28 | cause for denial of compensation; providing for |
| 29 | disposition of warranty claims; prohibiting certain acts |
| 30 | by the warrantor and the dealer; requiring notice of |
| 31 | certain pending suits; creating s. 320.3208, F.S.; |
| 32 | providing for inspection and rejection of a recreational |
| 33 | vehicle upon delivery to a dealer; creating s. 320.3209, |
| 34 | F.S.; prohibiting a manufacturer or distributor from |
| 35 | coercing a dealer to perform certain acts; creating s. |
| 36 | 320.3210, F.S.; providing for resolution when a dealer, |
| 37 | manufacturer, distributor, or warrantor is injured by |
| 38 | another party's violation; authorizing civil action; |
| 39 | providing for mediation; providing for remedies; creating |
| 40 | s. 320.3211, F.S.; providing administrative and criminal |
| 41 | penalties for violations; providing for an administrative |
| 42 | hearing to contest a penalty imposed by the department; |
| 43 | providing for severability; providing an effective date. |
| 44 |
|
| 45 | Be It Enacted by the Legislature of the State of Florida: |
| 46 |
|
| 47 | Section 1. Section 320.3201, Florida Statutes, is created |
| 48 | to read: |
| 49 | 320.3201 Legislative intent.--It is the intent of the |
| 50 | Legislature to protect the public health, safety, and welfare of |
| 51 | the citizens of the state by regulating the relationship between |
| 52 | recreational vehicle dealers and manufacturers, maintaining |
| 53 | competition, and providing consumer protection and fair trade. |
| 54 | Section 2. Section 320.3202, Florida Statutes, is created |
| 55 | to read: |
| 56 | 320.3202 Definitions.--As used in ss. 320.3201-320.3211, |
| 57 | the term: |
| 58 | (1) "Area of sales responsibility" means the geographical |
| 59 | area agreed to by the dealer and the manufacturer in the |
| 60 | manufacturer/dealer agreement in which the dealer has the |
| 61 | exclusive right to display or sell the manufacturer's new |
| 62 | recreational vehicles of a particular line-make. |
| 63 | (2) "Dealer" means any person, firm, corporation, or |
| 64 | business entity licensed or required to be licensed pursuant to |
| 65 | s. 320.771. |
| 66 | (3) "Distributor" means any person, firm, corporation, or |
| 67 | business entity that purchases new recreational vehicles for |
| 68 | resale to dealers. |
| 69 | (4) "Factory campaign" means an effort on the part of a |
| 70 | warrantor to contact recreational vehicle owners or dealers in |
| 71 | order to address a part or equipment issue. |
| 72 | (5) "Family member" means a spouse or a child, grandchild, |
| 73 | parent, sibling, niece, or nephew or the spouse thereof. |
| 74 | (6) "Line-make" means a specific series of recreational |
| 75 | vehicle products that: |
| 76 | (a) Are identified by a common series trade name or |
| 77 | trademark; |
| 78 | (b) Are targeted to a particular market segment, as |
| 79 | determined by their decor, features, equipment, size, weight, |
| 80 | and price range; |
| 81 | (c) Have lengths and interior floor plans that distinguish |
| 82 | the recreational vehicles from recreational vehicles with |
| 83 | substantially the same decor, equipment, features, price, and |
| 84 | weight; and |
| 85 | (d) Belong to a single, distinct classification of |
| 86 | recreational vehicle product type having a substantial degree of |
| 87 | commonality in the construction of the chassis, frame, and body. |
| 88 | (7) "Manufacturer" means any person, firm, corporation, or |
| 89 | business entity that engages in the manufacturing of |
| 90 | recreational vehicles. |
| 91 | (8) "Manufacturer/dealer agreement" means a written |
| 92 | agreement or contract entered into between a manufacturer and a |
| 93 | dealer which fixes the rights and responsibilities of the |
| 94 | parties and pursuant to which the dealer sells new recreational |
| 95 | vehicles. |
| 96 | (9) "Proprietary part" means any part manufactured by or |
| 97 | for and sold exclusively by the manufacturer. |
| 98 | (10) "Recreational vehicle" means the types of motor |
| 99 | vehicle or motor vehicles defined by s. 320.01(1)(b). |
| 100 | (11) "Transient customer" means a customer who is |
| 101 | temporarily traveling through a dealer's area of sales |
| 102 | responsibility. |
| 103 | (12) "Warrantor" means any person, firm, corporation, or |
| 104 | business entity that gives a warranty in connection with a new |
| 105 | recreational vehicle or parts, accessories, or components |
| 106 | thereof. Such term does not include service contracts, |
| 107 | mechanical or other insurance, or extended warranties sold for |
| 108 | separate consideration by a dealer or other person not |
| 109 | controlled by a manufacturer. |
| 110 | Section 3. Section 320.3203, Florida Statutes, is created |
| 111 | to read: |
| 112 | 320.3203 Requirement for a written manufacturer/dealer |
| 113 | agreement; area of sales responsibility.-- |
| 114 | (1) A manufacturer or distributor may not sell a |
| 115 | recreational vehicle in the state to or through a dealer without |
| 116 | having entered into a manufacturer/dealer agreement which is |
| 117 | signed by both parties. |
| 118 | (2) The manufacturer shall designate in the |
| 119 | manufacturer/dealer agreement the area of sales responsibility |
| 120 | exclusively assigned to a dealer and shall not change such area |
| 121 | or establish another dealer for the same line-make in such area |
| 122 | during the duration of the agreement. |
| 123 | (3) The area of sales responsibility may not be subject to |
| 124 | review or change before 1 year after the execution of the |
| 125 | manufacturer/dealer agreement. |
| 126 | (4) A motor vehicle dealer may not sell a new recreational |
| 127 | vehicle in this state without having entered into a |
| 128 | manufacturer/dealer agreement and may not sell outside of its |
| 129 | designated area of sales responsibility. |
| 130 | (5)(a) Notwithstanding subsection (4), a dealer may sell |
| 131 | outside of its designated area of responsibility if the dealer |
| 132 | obtains a supplemental license pursuant to s. 320.771(7) and |
| 133 | meets one of the following conditions: |
| 134 | 1. For sales within another dealer's designated area of |
| 135 | sales responsibility, the dealer must obtain in advance of the |
| 136 | off-premise sale a written agreement signed by the dealer, the |
| 137 | manufacturer of the recreational vehicles to be sold at the off- |
| 138 | premise sale, and the dealer in whose designated area of sales |
| 139 | responsibility the off-premise sale will occur. The written |
| 140 | agreement must: |
| 141 | a. Designate the recreational vehicles to be sold; |
| 142 | b. Set forth the time period for the off-premise sale; and |
| 143 | c. Affirmatively authorize the sale of the recreational |
| 144 | vehicles. |
| 145 | 2. The off-premise sale is not located within any dealer's |
| 146 | designated area of sales responsibility and is in conjunction |
| 147 | with a public vehicle show. |
| 148 | 3. The off-premise sale is in conjunction with a public |
| 149 | vehicle show in which more than 35 dealers are participating and |
| 150 | is predominantly funded by manufacturers. |
| 151 | (b) For the purposes of this subsection, "public vehicle |
| 152 | show" means an event sponsored by an organization approved under |
| 153 | section 501(c)(6) of the Internal Revenue Code which has the |
| 154 | purpose of promoting the welfare of the recreational vehicle |
| 155 | industry and is located at a site: |
| 156 | 1. That will be used to display and sell recreational |
| 157 | vehicles; |
| 158 | 2. That is not used for off-premise sales for more than 10 |
| 159 | days in a calendar year; and |
| 160 | 3. That is not the location set forth on any dealer's |
| 161 | license as its place of business. |
| 162 | Section 4. Section 320.3204, Florida Statutes, is created |
| 163 | to read: |
| 164 | 320.3204 Sales of recreational vehicles by manufacturer or |
| 165 | distributor.--Sales of recreational vehicles by manufacturers or |
| 166 | distributors shall be in accordance with published prices, |
| 167 | charges, and terms of sale in effect at any given time. The |
| 168 | manufacturer must sell products on the same basis, with respect |
| 169 | to all rebates, discounts, and programs, to all competing |
| 170 | dealers similarly situated. |
| 171 | Section 5. Section 320.3205, Florida Statutes, is created |
| 172 | to read: |
| 173 | 320.3205 Termination, cancellation, and nonrenewal of a |
| 174 | manufacturer/dealer agreement.-- |
| 175 | (1)(a) A manufacturer, directly or through any officer, |
| 176 | agent, or employee, may not terminate, cancel, or fail to renew |
| 177 | a manufacturer/dealer agreement without good cause, and, upon |
| 178 | renewal, may not require additional inventory stocking |
| 179 | requirements or increased retail sales targets in excess of the |
| 180 | market growth in the dealer's area of responsibility. |
| 181 | (b) The manufacturer has the burden of showing good cause. |
| 182 | For purposes of determining whether there is good cause for a |
| 183 | proposed action by a manufacturer, all of the following factors |
| 184 | must be considered: |
| 185 | 1. The extent of the affected dealer's penetration in the |
| 186 | relevant market area. |
| 187 | 2. The nature and extent of the dealer's investment in its |
| 188 | business. |
| 189 | 3. The adequacy of the dealer's service facilities, |
| 190 | equipment, parts, supplies, and personnel. |
| 191 | 4. The effect of the proposed action on the community. |
| 192 | 5. The extent and quality of the dealer's service under |
| 193 | recreational vehicle warranties. |
| 194 | 6. The failure to follow agreed-upon procedures or |
| 195 | standards related to the overall operation of the dealership. |
| 196 | 7. The dealer's performance under the terms of its |
| 197 | manufacturer/dealer agreement. |
| 198 | (c) Except as provided in this section, a manufacturer |
| 199 | shall provide a dealer at least 120 days' prior written notice |
| 200 | of termination, cancellation, or nonrenewal of the |
| 201 | manufacturer/dealer agreement. |
| 202 | 1. The notice shall state all reasons for termination, |
| 203 | cancellation, or nonrenewal and shall further state that if, |
| 204 | within 30 days following receipt of the manufacturer's notice, |
| 205 | the dealer provides to the manufacturer a written notice of |
| 206 | intent to cure all claimed deficiencies, the dealer will then |
| 207 | have 120 days after the date of the manufacturer's notice to |
| 208 | rectify the deficiencies. If the deficiencies are rectified |
| 209 | within 120 days, the manufacturer's notice shall be void. If the |
| 210 | dealer fails to provide the notice of intent to cure |
| 211 | deficiencies in the prescribed time period, the termination, |
| 212 | cancellation, or nonrenewal shall take effect 30 days after the |
| 213 | dealer's receipt of the manufacturer's notice unless the dealer |
| 214 | has new and untitled inventory on hand. |
| 215 | 2. The notice period may be reduced to 30 days if the |
| 216 | grounds for termination, cancellation, or nonrenewal are due to: |
| 217 | a. Conviction of or plea of nolo contendere to a felony of |
| 218 | a dealer or one of its owners; |
| 219 | b. The abandonment or closing of the business operations |
| 220 | of the dealer for 10 consecutive business days unless the |
| 221 | closing is due to an act of God, strike, labor difficulty, or |
| 222 | other cause over which the dealer has no control; |
| 223 | c. A significant misrepresentation by the dealer; or |
| 224 | d. A suspension or revocation of the dealer's license, or |
| 225 | refusal to renew the dealer's license, by the department. |
| 226 | 3. The notice provisions of this paragraph shall not apply |
| 227 | if the reason for termination, cancellation, or nonrenewal is |
| 228 | insolvency, the occurrence of an assignment for the benefit of |
| 229 | creditors, or bankruptcy. |
| 230 | (2) A dealer may terminate its manufacturer/dealer |
| 231 | agreement with or without cause at any time by giving 30 days' |
| 232 | written notice to the manufacturer. The dealer has the burden of |
| 233 | showing good cause. Any of the following items shall be deemed |
| 234 | good cause for a proposed action by a dealer: |
| 235 | (a) Conviction of or plea of nolo contendere to a felony |
| 236 | of a manufacturer or one of its subsidiary companies. |
| 237 | (b) The business operations of the manufacturer have been |
| 238 | abandoned or closed for 10 consecutive business days, unless the |
| 239 | closing is due to an act of God, strike, labor difficulty, or |
| 240 | other cause over which the manufacturer has no control. |
| 241 | (c) A significant misrepresentation by the manufacturer. |
| 242 | (d) A violation of ss. 320.3201-320.3211. |
| 243 | (e) A declaration by the manufacturer of bankruptcy, |
| 244 | insolvency, or the occurrence of an assignment for the benefit |
| 245 | of creditors or bankruptcy. |
| 246 | (3) If the manufacturer/dealer agreement is terminated, |
| 247 | canceled, or not renewed by the manufacturer or by the dealer |
| 248 | for cause, the manufacturer shall, at the election of the dealer |
| 249 | and within 30 days of termination, cancellation, or nonrenewal, |
| 250 | repurchase: |
| 251 | (a) All new motor vehicles, as defined by s. 319.001(8), |
| 252 | acquired from the manufacturer which have not been used except |
| 253 | for demonstration purposes, altered, or damaged at 100 percent |
| 254 | of the net invoice cost, including transportation, less |
| 255 | applicable rebates and discounts to the dealer. In the event any |
| 256 | of the vehicles repurchased are damaged, the amount due to the |
| 257 | dealer shall be reduced by the cost to repair the vehicle. |
| 258 | Damage prior to delivery to the dealer will not disqualify |
| 259 | repurchase under this subsection; |
| 260 | (b) All current and undamaged manufacturer's accessories |
| 261 | and proprietary parts sold to the dealer for resale, if |
| 262 | accompanied by the original invoice, at 105 percent of the |
| 263 | original net price paid to the manufacturer to compensate the |
| 264 | dealer for handling, packing, and shipping the parts; and |
| 265 | (c) Any functioning diagnostic equipment, special tools, |
| 266 | current signage, and other equipment and machinery at 100 |
| 267 | percent of the dealer's net cost plus freight, destination, |
| 268 | delivery, and distribution charges and sales taxes, if any, |
| 269 | provided it was purchased by the dealer within 5 years before |
| 270 | termination and upon the manufacturer's request and can no |
| 271 | longer be used in the normal course of the dealer's ongoing |
| 272 | business. The manufacturer shall pay the dealer within 30 days |
| 273 | after receipt of the returned items. |
| 274 | Section 6. Section 320.3206, Florida Statutes, is created |
| 275 | to read: |
| 276 | 320.3206 Transfer of ownership; family succession.-- |
| 277 | (1) If a dealer desires to make a change in its ownership |
| 278 | by the sale of the business assets, stock transfer, or |
| 279 | otherwise, the dealer must give the manufacturer 30 days' |
| 280 | written notice before the closing, including all supporting |
| 281 | documentation as may be reasonably required by the manufacturer. |
| 282 | The manufacturer shall not refuse consent to the proposed change |
| 283 | or sale and may not disapprove or withhold approval of the |
| 284 | change or sale unless the manufacturer can show that its |
| 285 | decision is based on the manufacturer's reasonable criteria, |
| 286 | which may include the prospective transferee's business |
| 287 | experience, moral character, financial qualifications, and any |
| 288 | criminal record. |
| 289 | (2) If the manufacturer rejects a proposed change or sale, |
| 290 | the manufacturer shall give written notice of its reasons to the |
| 291 | dealer within 30 days after receipt of the dealer's notification |
| 292 | and complete documentation. If the manufacturer does not give |
| 293 | notice of rejection, the change or sale shall be deemed |
| 294 | approved. |
| 295 | (3) The manufacturer has the burden of showing that its |
| 296 | rejection of the transfer or sale is reasonable. |
| 297 | (4) It is unlawful for any manufacturer to fail to provide |
| 298 | a dealer an opportunity to designate, in writing, a family |
| 299 | member as a successor to the dealership in the event of the |
| 300 | death, incapacity, or retirement of the dealer. It shall be |
| 301 | unlawful to prevent or refuse to honor the succession to a |
| 302 | dealership by a family member of the deceased, incapacitated, or |
| 303 | retired dealer unless the manufacturer has provided to the |
| 304 | dealer written notice of its objections. Grounds for objection |
| 305 | shall be lack of creditworthiness, conviction of a felony, lack |
| 306 | of required licenses or business experience, or other condition |
| 307 | that makes the succession unreasonable under the circumstances. |
| 308 | The manufacturer has the burden of showing the unreasonableness |
| 309 | of the succession. However, no family member may succeed to a |
| 310 | dealership if the succession involves, without the |
| 311 | manufacturer's consent, a relocation of the business or an |
| 312 | alteration of the terms and conditions of the |
| 313 | manufacturer/dealer agreement. |
| 314 | Section 7. Section 320.3207, Florida Statutes, is created |
| 315 | to read: |
| 316 | 320.3207 Warranty obligations.-- |
| 317 | (1) Each warrantor shall specify in writing to each of its |
| 318 | dealers obligations, if any, for preparation, delivery, and |
| 319 | warranty service on its products; compensate the dealer for |
| 320 | warranty service required of the dealer by the warrantor; and |
| 321 | provide the dealer the schedule of compensation to be paid and |
| 322 | the time allowances for the performance of such work and |
| 323 | service. In no event shall the schedule of compensation fail to |
| 324 | include reasonable compensation for diagnostic work as well as |
| 325 | warranty labor. |
| 326 | (2) Time allowances for the diagnosis and performance of |
| 327 | warranty labor shall be reasonable for the work to be performed. |
| 328 | The manufacturer shall authorize the dealer to undertake |
| 329 | warranty repairs without prior approval if the repairs require |
| 330 | less than 3 hours of labor. In no event shall the compensation |
| 331 | of a dealer for warranty labor be less than the lowest retail |
| 332 | labor rates actually charged by the dealer for like nonwarranty |
| 333 | labor as long as such rates are reasonable. |
| 334 | (3) The warrantor shall reimburse the dealer for warranty |
| 335 | parts at actual wholesale cost plus a minimum 30-percent |
| 336 | handling charge and the cost, if any, of freight to return |
| 337 | warranty parts to the warrantor. |
| 338 | (4) Warranty audits of dealer records may be conducted by |
| 339 | the warrantor on a reasonable basis, and dealer claims for |
| 340 | warranty compensation shall not be denied except for cause, such |
| 341 | as performance of nonwarranty repairs, material noncompliance |
| 342 | with warrantor's published policies and procedures, lack of |
| 343 | material documentation, fraud, or misrepresentation. |
| 344 | (5) The dealer must submit warranty claims within 45 days |
| 345 | after completing work. |
| 346 | (6) The dealer must notify the warrantor verbally or in |
| 347 | writing if the dealer is unable to perform material or |
| 348 | repetitive warranty repairs as soon as is reasonably possible. |
| 349 | (7) The warrantor must disapprove warranty claims in |
| 350 | writing within 30 days after the date of submission by the |
| 351 | dealer in the manner and form prescribed by the warrantor. |
| 352 | Claims not specifically disapproved in writing within 30 days |
| 353 | shall be construed to be approved and must be paid within 45 |
| 354 | days. |
| 355 | (8) It is a violation of ss. 320.3201-320.3211 for any |
| 356 | warrantor to: |
| 357 | (a) Fail to perform any of its warranty obligations with |
| 358 | respect to a recreational vehicle and its components; |
| 359 | (b) Fail to include, in written notices of factory |
| 360 | campaigns to recreational vehicle owners and dealers, the |
| 361 | expected date by which necessary parts and equipment, including |
| 362 | tires and chassis or chassis parts, will be available to dealers |
| 363 | to perform the campaign work. The manufacturer may ship parts to |
| 364 | the dealer to effect the campaign work, and, if such parts are |
| 365 | in excess of the dealer's requirements, the dealer may return |
| 366 | unused parts to the manufacturer for credit after completion of |
| 367 | the campaign; |
| 368 | (c) Fail to compensate any of its dealers for authorized |
| 369 | repairs effected by the dealer of merchandise damaged in |
| 370 | manufacture or transit to the dealer, if the carrier is |
| 371 | designated by the manufacturer, factory branch, distributor, or |
| 372 | distributor branch; |
| 373 | (d) Fail to compensate any of its dealers for authorized |
| 374 | warranty service in accordance with the schedule of compensation |
| 375 | provided to the dealer pursuant to this section if performed in |
| 376 | a timely and competent manner; |
| 377 | (e) Intentionally misrepresent in any way to purchasers of |
| 378 | recreational vehicles that warranties with respect to the |
| 379 | manufacture, performance, or design of the vehicle are made by |
| 380 | the dealer either as warrantor or cowarrantor; or |
| 381 | (f) Require the dealer to make warranties to customers in |
| 382 | any manner related to the manufacture of the recreational |
| 383 | vehicle. |
| 384 | (9) It is a violation of ss. 320.3201-320.3211 for any |
| 385 | dealer to: |
| 386 | (a) Fail to perform predelivery inspection functions, if |
| 387 | required, in a competent and timely manner; |
| 388 | (b) Fail to perform warranty service work authorized by |
| 389 | the warrantor in a reasonably competent and timely manner on any |
| 390 | transient customer's vehicle of the same line-make without good |
| 391 | cause; or |
| 392 | (c) Misrepresent the terms of any warranty. |
| 393 | (10)(a) Notwithstanding the terms of any |
| 394 | manufacturer/dealer agreement, it is a violation of ss. |
| 395 | 320.3201-320.3211 for any warrantor to fail to indemnify and |
| 396 | hold harmless its dealer against any losses or damages to the |
| 397 | extent such losses or damages are caused by the negligence or |
| 398 | willful misconduct of the warrantor. The dealer shall not be |
| 399 | denied indemnification for failing to discover, disclose, or |
| 400 | remedy a defect in the design or manufacturing of the |
| 401 | recreational vehicle. The dealer shall provide to the warrantor |
| 402 | a copy of any suit in which allegations are made that come |
| 403 | within this subsection within 10 days after receiving such suit. |
| 404 | (b) Notwithstanding the terms of any manufacturer/dealer |
| 405 | agreement, it is a violation of ss. 320.3201-320.3211 for any |
| 406 | dealer to fail to indemnify and hold harmless its warrantor |
| 407 | against any losses or damages to the extent such losses or |
| 408 | damages are caused by the negligence or willful misconduct of |
| 409 | the dealer. The warrantor shall provide to the dealer a copy of |
| 410 | pending suits in which allegations are made that come within |
| 411 | this subsection within 10 days after receiving such suit. |
| 412 | Section 8. Section 320.3208, Florida Statutes, is created |
| 413 | to read: |
| 414 | 320.3208 Inspection and rejection by the dealer.-- |
| 415 | (1) Whenever a new recreational vehicle is damaged prior |
| 416 | to transit to the dealer or is damaged in transit to the dealer |
| 417 | when the carrier or means of transportation has been selected by |
| 418 | the manufacturer or distributor, the dealer shall: |
| 419 | (a) Notify the manufacturer or distributor of the damage |
| 420 | by the next business day after the date of delivery of the new |
| 421 | recreational vehicle to the dealer or within such additional |
| 422 | time as specified in the manufacturer/dealer agreement; and |
| 423 | (b) Either: |
| 424 | 1. Request from the manufacturer or distributor |
| 425 | authorization to replace the components, parts, and accessories |
| 426 | damaged or otherwise correct the damage; or |
| 427 | 2. Reject the vehicle within the timeframe set forth in |
| 428 | subsection (3). |
| 429 |
|
| 430 | If the manufacturer or distributor refuses or fails to authorize |
| 431 | repair of such damage within 10 days after receipt of |
| 432 | notification or if the dealer rejects the recreational vehicle |
| 433 | because of damage, ownership of the new recreational vehicle |
| 434 | shall revert to the manufacturer or distributor. |
| 435 | (2) The dealer will exercise due care in custody of the |
| 436 | damaged recreational vehicle, but the dealer shall have no other |
| 437 | obligations, financial or otherwise, with respect to that |
| 438 | recreational vehicle. |
| 439 | (3) The timeframe for inspection and rejection by the |
| 440 | dealer shall be part of the manufacturer/dealer agreement and |
| 441 | shall not be less than 3 business days after the physical |
| 442 | delivery of the recreational vehicle. |
| 443 | (4) Any recreational vehicle that has, at the time of |
| 444 | delivery to the dealer, an unreasonable amount of miles on its |
| 445 | odometer, as determined by the dealer, may be subject to |
| 446 | rejection by the dealer and reversion of the vehicle to the |
| 447 | manufacturer or distributor. |
| 448 | Section 9. Section 320.3209, Florida Statutes, is created |
| 449 | to read: |
| 450 | 320.3209 Coercion of dealer prohibited.-- |
| 451 | (1) A manufacturer or distributor may not coerce or |
| 452 | attempt to coerce a dealer to: |
| 453 | (a) Purchase a product that the dealer did not order; |
| 454 | (b) Enter into an agreement with the manufacturer or |
| 455 | distributor; |
| 456 | (c) Take any action which is unfair or unreasonable to the |
| 457 | dealer; or |
| 458 | (d) Require a dealer to enter into an agreement that |
| 459 | requires the dealer to submit its disputes to binding |
| 460 | arbitration or otherwise waive rights or responsibilities under |
| 461 | ss. 320.3201-320.3211. |
| 462 | (2) As used in this section, the term "coerce" includes, |
| 463 | but is not limited to, threatening to terminate, cancel, or not |
| 464 | renew a manufacturer/dealer agreement without good cause or |
| 465 | threatening to withhold product lines or delay product delivery |
| 466 | as an inducement to amending the manufacturer/dealer agreement. |
| 467 | Section 10. Section 320.3210, Florida Statutes, is created |
| 468 | to read: |
| 469 | 320.3210 Civil dispute resolution; mediation; relief.-- |
| 470 | (1) A dealer, manufacturer, distributor, or warrantor |
| 471 | injured by another party's violation of ss. 320.3201-320.3211 |
| 472 | may bring a civil action in circuit court to recover actual |
| 473 | damages. The court shall award attorney's fees and costs to the |
| 474 | prevailing party in such an action. Venue for any civil action |
| 475 | authorized by this section shall exclusively be in the county in |
| 476 | which the dealership is located. In an action involving more |
| 477 | than one dealer, venue may be in any county in which a dealer |
| 478 | that is party to the action is located. |
| 479 | (2)(a) Prior to bringing suit under this section, the |
| 480 | party bringing suit for an alleged violation shall serve a |
| 481 | written demand for mediation upon the offending party. |
| 482 | (b) The demand for mediation shall be served upon the |
| 483 | offending party via certified mail at the address stated within |
| 484 | the agreement between the parties. In the event of a civil |
| 485 | action between two dealers, the demand shall be mailed to the |
| 486 | address on the dealer's license filed with the department. |
| 487 | (c) The demand for mediation shall contain a brief |
| 488 | statement of the dispute and the relief sought by the party |
| 489 | filing the demand. |
| 490 | (d) Within 20 days after the date a demand for mediation |
| 491 | is served, the parties shall mutually select an independent |
| 492 | certified mediator and meet with that mediator for the purpose |
| 493 | of attempting to resolve the dispute. The meeting place shall be |
| 494 | in this state in a location selected by the mediator. The |
| 495 | mediator may extend the date of the meeting for good cause shown |
| 496 | by either party or upon stipulation of both parties. |
| 497 | (e) The service of a demand for mediation under this |
| 498 | subsection shall stay the time for the filing of any complaint, |
| 499 | petition, protest, or action under ss. 320.3201-320.3211 until |
| 500 | representatives of both parties have met with a mutually |
| 501 | selected mediator for the purpose of attempting to resolve the |
| 502 | dispute. If a complaint, petition, protest, or action is filed |
| 503 | before that meeting, the court shall enter an order suspending |
| 504 | the proceeding or action until the meeting has occurred and may, |
| 505 | upon written stipulation of all parties to the proceeding or |
| 506 | action that they wish to continue to mediate under this |
| 507 | subsection, enter an order suspending the proceeding or action |
| 508 | for as long a period as the court considers appropriate. A |
| 509 | suspension order issued under this paragraph may be revoked upon |
| 510 | motion of any party or upon motion of the court. |
| 511 | (f) The parties to the mediation shall bear their own |
| 512 | costs for attorney's fees and divide equally the cost of the |
| 513 | mediator. |
| 514 | (3) In addition to the remedies provided in this section |
| 515 | and notwithstanding the existence of any additional remedy at |
| 516 | law, a dealer is authorized to make application to a circuit |
| 517 | court for the grant, upon a hearing and for cause shown, of a |
| 518 | temporary or permanent injunction, or both, restraining any |
| 519 | person from acting as a dealer without being properly licensed |
| 520 | pursuant s. 320.771, from violating or continuing to violate any |
| 521 | of the provisions of ss. 320.3201-320.3211, or from failing or |
| 522 | refusing to comply with the requirements of ss. 320.3201- |
| 523 | 320.3211. Such injunction shall be issued without bond. A single |
| 524 | act in violation of the provisions of ss. 320.3201-320.3211 |
| 525 | shall be sufficient to authorize the issuance of an injunction. |
| 526 | Section 11. Section 320.3211, Florida Statutes, is created |
| 527 | to read: |
| 528 | 320.3211 Penalties.-- |
| 529 | (1) The department shall, as it deems necessary, either |
| 530 | suspend or revoke any license issued under s. 320.771 upon a |
| 531 | finding that the dealer violated any provision of ss. 320.3201- |
| 532 | 320.3211. The department is authorized to assess, impose, levy, |
| 533 | and collect by legal process fines, in an amount not to exceed |
| 534 | $1,000 for each violation, against any individual if it finds |
| 535 | that he or she has violated any provision of ss. 320.3201- |
| 536 | 320.3211. Such individual is entitled to an administrative |
| 537 | hearing pursuant to chapter 120 to contest the action or fine |
| 538 | levied, or about to be levied, upon him or her. |
| 539 | (2) In addition to the civil and administrative remedies, |
| 540 | a person who violates any provision of ss. 320.3201-320.3211 |
| 541 | commits a misdemeanor of the second degree, punishable as |
| 542 | provided in s. 775.082 or s. 775.083. |
| 543 | Section 12. If any provision of this act or the |
| 544 | application thereof to any person or circumstance is held |
| 545 | invalid, the invalidity shall not affect other provisions or |
| 546 | applications of the act which can be given effect without the |
| 547 | invalid provision or application and, to this end, the |
| 548 | provisions of this act are declared severable. |
| 549 | Section 13. This act shall take effect July 1, 2007. |