1 | A bill to be entitled |
2 | An act relating to recreational vehicle manufacturers, |
3 | distributors, and dealers; creating s. 320.3201, F.S.; |
4 | providing legislative intent; creating s. 320.3202, F.S.; |
5 | providing definitions; creating s. 320.3203, F.S.; |
6 | providing requirements for a manufacturer/dealer |
7 | agreement; requiring designation of the area of sales |
8 | responsibility; providing conditions for sales outside the |
9 | dealer's area of sales responsibility; creating s. |
10 | 320.3204, F.S.; providing requirements for sales by |
11 | manufacturers and distributors; creating s. 320.3205, |
12 | F.S.; providing requirements and procedures for |
13 | termination, cancellation, or nonrenewal of a |
14 | manufacturer/dealer agreement by a manufacturer or a |
15 | dealer; providing for the repurchase by the manufacturer |
16 | of vehicles, accessories, parts and equipment, tools, |
17 | signage, and machinery; creating s. 320.3206, F.S.; |
18 | providing for change in ownership by a dealer; requiring |
19 | notice to the manufacturer; providing requirements for |
20 | rejection by the manufacturer; providing for a dealer to |
21 | name a family member as a successor in case of retirement, |
22 | incapacitation, or death of the dealer; providing |
23 | requirements for rejection of the successor by the |
24 | manufacturer; creating s. 320.3207, F.S.; providing |
25 | requirements for warrantors, manufacturers, and dealers |
26 | with respect to warranty obligations; providing |
27 | requirements for compensation of the dealer; authorizing |
28 | warranty audits by the warrantor; requiring cause for |
29 | denial of compensation; providing for disposition of |
30 | warranty claims; prohibiting certain acts by the warrantor |
31 | and the dealer; requiring notice of certain pending suits; |
32 | creating s. 320.3208, F.S.; providing for inspection and |
33 | rejection of a recreational vehicle upon delivery to a |
34 | dealer; creating s. 320.3209, F.S.; prohibiting a |
35 | manufacturer or distributor from coercing a dealer to |
36 | perform certain acts; creating s. 320.3210, F.S.; |
37 | providing for resolution when a dealer, manufacturer, |
38 | distributor, or warrantor is injured by another party's |
39 | violation; authorizing civil action; providing for |
40 | mediation; providing for remedies; creating s. 320.3211, |
41 | F.S.; providing administrative and criminal penalties for |
42 | violations; providing for an administrative hearing to |
43 | contest a penalty imposed by the department; amending s. |
44 | 320.8225, F.S.; providing licensure requirements for |
45 | distributors and importers; providing for severability; |
46 | providing an effective date. |
47 |
|
48 | Be It Enacted by the Legislature of the State of Florida: |
49 |
|
50 | Section 1. Section 320.3201, Florida Statutes, is created |
51 | to read: |
52 | 320.3201 Legislative intent.-- |
53 | (1) It is the intent of the Legislature to protect the |
54 | public health, safety, and welfare of the residents of the state |
55 | by regulating the relationship between recreational vehicle |
56 | dealers and manufacturers, maintaining competition, and |
57 | providing consumer protection and fair trade. |
58 | (2) It is the intent of the Legislature that the |
59 | provisions of this act be applied to manufacturer/dealer |
60 | agreements entered into on or after October 1, 2007. |
61 | Section 2. Section 320.3202, Florida Statutes, is created |
62 | to read: |
63 | 321.3202 Definitions.--As used in ss. 320.3201-320.3211, |
64 | the term: |
65 | (1) "Area of sales responsibility" means the geographical |
66 | area agreed to by the dealer and the manufacturer in the |
67 | manufacturer/dealer agreement within which the dealer has the |
68 | exclusive right to display or sell the manufacturer's new |
69 | recreational vehicles of a particular line-make. |
70 | (2) "Dealer" means any person, firm, corporation, or |
71 | business entity licensed or required to be licensed under s. |
72 | 320.771. |
73 | (3) "Distributor" means any person, firm, corporation, or |
74 | business entity that purchases new recreational vehicles for |
75 | resale to dealers. |
76 | (4) "Factory campaign" means an effort on the part of a |
77 | warrantor to contact recreational vehicle owners or dealers in |
78 | order to address a part or equipment issue. |
79 | (5) "Family member" means a spouse, child, grandchild, |
80 | parent, sibling, niece, or nephew, or the spouse thereof. |
81 | (6) "Line-make" means a specific series of recreational |
82 | vehicle products that: |
83 | (a) Are identified by a common series trade name or |
84 | trademark; |
85 | (b) Are targeted to a particular market segment, as |
86 | determined by their decor, features, equipment, size, weight, |
87 | and price range; |
88 | (c) Have lengths and interior floor plans that distinguish |
89 | the recreational vehicles from other recreational vehicles with |
90 | substantially the same decor, equipment, features, price, and |
91 | weight; and |
92 | (d) Belong to a single, distinct classification of |
93 | recreational vehicle product type having a substantial degree of |
94 | commonality in the construction of the chassis, frame, and body. |
95 | (7) "Manufacturer" means any person, firm, corporation, or |
96 | business entity that engages in the manufacturing of |
97 | recreational vehicles. |
98 | (8) "Manufacturer/dealer agreement" means a written |
99 | agreement or contract entered into between a manufacturer and a |
100 | dealer that fixes the rights and responsibilities of the parties |
101 | and pursuant to which the dealer sells new recreational |
102 | vehicles. |
103 | (9) "Proprietary part" means any part manufactured by or |
104 | for and sold exclusively by the manufacturer. |
105 | (10) "Recreational vehicle" means the category of motor |
106 | vehicle described s. 320.01(1)(b). |
107 | (11) "Transient customer" means a customer who is |
108 | temporarily traveling through a dealer's area of sales |
109 | responsibility. |
110 | (12) "Warrantor" means any person, firm, corporation, or |
111 | business entity that gives a warranty in connection with a new |
112 | recreational vehicle or parts, accessories, or components |
113 | thereof. The term does not include service contracts, mechanical |
114 | or other insurance, or extended warranties sold for separate |
115 | consideration by a dealer or other person not controlled by a |
116 | manufacturer. |
117 | Section 3. Section 320.3203, Florida Statutes, is created |
118 | to read: |
119 | 320.3203 Requirement for a written manufacturer/dealer |
120 | agreement; area of sales responsibility.-- |
121 | (1) A manufacturer or distributor may not sell a |
122 | recreational vehicle in this state to or through a dealer |
123 | without having first entered into a manufacturer/dealer |
124 | agreement with a dealer which has been signed by both parties. |
125 | (2) The manufacturer shall designate the area of sales |
126 | responsibility exclusively assigned to a dealer in the |
127 | manufacturer/dealer agreement and may not change such area or |
128 | contract with another dealer for sale of the same line-make in |
129 | the designated area during the duration of the agreement. |
130 | (3) The area of sales responsibility may not be reviewed |
131 | or changed until 1 year after the execution of the |
132 | manufacturer/dealer agreement. |
133 | (4) A motor vehicle dealer may not sell a new recreational |
134 | vehicle in this state without having first entered into a |
135 | manufacturer/dealer agreement with a manufacturer or distributor |
136 | and may not sell outside of the area of sales responsibility |
137 | designated in the agreement. |
138 | (5) Notwithstanding subsection (4), a dealer may sell |
139 | outside of its designated area of sales responsibility if the |
140 | dealer obtains a supplemental license pursuant to s. 320.771(7) |
141 | and meets any one of the following conditions: |
142 | (a) For sales within another dealer's designated area of |
143 | sales responsibility, the dealer must obtain in advance of the |
144 | off-premise sale a written agreement signed by the dealer, the |
145 | manufacturer of the recreational vehicles to be sold at the off- |
146 | premise sale, and the dealer in whose designated area of sales |
147 | responsibility the off-premise sale will occur which: |
148 | 1. Designates the recreational vehicles to be sold; |
149 | 2. Sets forth the time period for the off-premise sale; |
150 | and |
151 | 3. Affirmatively authorizes the sale of the recreational |
152 | vehicles. |
153 | (b) The off-premise sale is not located within any |
154 | dealer's designated area of sales responsibility and is in |
155 | conjunction with a public vehicle show. |
156 | (c) The off-premise sale is in conjunction with a public |
157 | vehicle show in which more than 35 dealers are participating and |
158 | the show is predominantly funded by manufacturers. For the |
159 | purposes of this subsection, the term "public vehicle show" |
160 | means an event sponsored by an organization approved under s. |
161 | 501(c)(6) of the Internal Revenue Code which has the purpose of |
162 | promoting the welfare of the recreational vehicle industry and |
163 | is located at a site that: |
164 | 1. Will be used to display and sell recreational vehicles; |
165 | 2. Is not used for off-premise sales for more than 10 days |
166 | in a calendar year; and |
167 | 3. Is not the location set forth on any dealer's license |
168 | as its place of business. |
169 | Section 4. Section 320.3204, Florida Statutes, is created |
170 | to read: |
171 | 320.3204 Sales of recreational vehicles by manufacturer or |
172 | distributor.--Sales of recreational vehicles by a manufacturer |
173 | or distributor shall be in accordance with published prices, |
174 | charges, and terms of sale in effect at any given time. The |
175 | manufacturer shall offer to sell products on the same basis, |
176 | with respect to all rebates, discounts, and programs, to all |
177 | competing dealers similarly situated. |
178 | Section 5. Section 320.3205, Florida Statutes, is created |
179 | to read: |
180 | 320.3205 Termination, cancellation, and nonrenewal of a |
181 | manufacturer/dealer agreement.-- |
182 | (1) A manufacturer or distributor, directly or through any |
183 | officer, agent, or employee, may not terminate, cancel, or fail |
184 | to renew a manufacturer/dealer agreement without good cause, |
185 | and, upon renewal, may not require additional inventory stocking |
186 | requirements or increased retail sales targets in excess of the |
187 | market growth in the dealer's area of sales responsibility. |
188 | (a) The manufacturer or distributor has the burden of |
189 | showing good cause for terminating, canceling, or failing to |
190 | renew a manufacturer/dealer agreement with a dealer. For |
191 | purposes of determining whether there is good cause for the |
192 | proposed action, any of the following factors may be considered: |
193 | 1. The extent of the affected dealer's penetration in the |
194 | relevant market area. |
195 | 2. The nature and extent of the dealer's investment in its |
196 | business. |
197 | 3. The adequacy of the dealer's service facilities, |
198 | equipment, parts, supplies, and personnel. |
199 | 4. The effect of the proposed action on the community. |
200 | 5. The extent and quality of the dealer's service under |
201 | recreational vehicle warranties. |
202 | 6. The failure to follow agreed-upon procedures or |
203 | standards related to the overall operation of the dealership. |
204 | 7. The dealer's performance under the terms of its |
205 | manufacturer/dealer agreement. |
206 | (b) Except as otherwise provided in this section, a |
207 | manufacturer or distributor shall provide a dealer with at least |
208 | 120 days' prior written notice of termination, cancellation, or |
209 | nonrenewal of the manufacturer/dealer agreement. |
210 | 1. The notice must state all reasons for the proposed |
211 | termination, cancellation, or nonrenewal and must further state |
212 | that if, within 30 days following receipt of the notice, the |
213 | dealer provides to the manufacturer or distributor a written |
214 | notice of intent to cure all claimed deficiencies, the dealer |
215 | will then have 120 days following receipt of the notice to |
216 | rectify the deficiencies. If the deficiencies are rectified |
217 | within 120 days, the manufacturer's or distributor's notice is |
218 | voided. If the dealer fails to provide the notice of intent to |
219 | cure the deficiencies in the prescribed time period, the |
220 | termination, cancellation, or nonrenewal takes effect 30 days |
221 | after the dealer's receipt of the notice unless the dealer has |
222 | new and untitled inventory on hand that may be disposed of |
223 | pursuant to subsection (3). |
224 | 2. The notice period may be reduced to 30 days if the |
225 | grounds for termination, cancellation, or nonrenewal are due to: |
226 | a. A dealer or one of its owners being convicted of, or |
227 | entering a plea of nolo contendere to, a felony; |
228 | b. The abandonment or closing of the business operations |
229 | of the dealer for 10 consecutive business days unless the |
230 | closing is due to an act of God, strike, labor difficulty, or |
231 | other cause over which the dealer has no control; |
232 | c. A material misrepresentation by the dealer; or |
233 | d. A suspension or revocation of the dealer's license, or |
234 | refusal to renew the dealer's license, by the department. |
235 | 3. The notice provisions of this paragraph do not apply if |
236 | the reason for termination, cancellation, or nonrenewal is |
237 | insolvency, the occurrence of an assignment for the benefit of |
238 | creditors, or bankruptcy. |
239 | (2) A dealer may terminate, cancel, or not renew its |
240 | manufacturer/dealer agreement with a manufacturer or distributor |
241 | with or without cause at any time by giving 30 days' written |
242 | notice to the manufacturer. If the termination, cancellation, or |
243 | nonrenewal is for cause, the dealer has the burden of showing |
244 | good cause. Any of the following items shall be deemed good |
245 | cause for the proposed action by a dealer: |
246 | (a) A manufacturer or one of its subsidiary companies |
247 | being convicted of, or entering a plea of nolo contendere to, a |
248 | felony. |
249 | (b) The business operations of the manufacturer have been |
250 | abandoned or closed for 10 consecutive business days, unless the |
251 | closing is due to an act of God, strike, labor difficulty, or |
252 | other cause over which the manufacturer has no control. |
253 | (c) A significant misrepresentation by the manufacturer. |
254 | (d) A material violation of ss. 320.3201-320.3211 which is |
255 | not cured within 30 days after written notice by the dealer. |
256 | (e) A declaration by the manufacturer of bankruptcy, |
257 | insolvency, or the occurrence of an assignment for the benefit |
258 | of creditors or bankruptcy. |
259 | (3) If the manufacturer/dealer agreement is terminated, |
260 | canceled, or not renewed by the manufacturer or distributor |
261 | without cause or by the dealer for cause, the manufacturer |
262 | shall, at the election of the dealer and within 30 days after |
263 | termination, cancellation, or nonrenewal, repurchase: |
264 | (a) All recreational vehicles that are classified as "new" |
265 | for titling purposes under s. 319.001(8), that were acquired |
266 | from the manufacturer or distributor, that have not been used, |
267 | except for demonstration purposes, and that have not been |
268 | altered or damaged, at 100 percent of the net invoice cost, |
269 | including transportation, less applicable rebates and discounts |
270 | to the dealer. If any of the vehicles repurchased are damaged, |
271 | the amount due to the dealer shall be reduced by the cost to |
272 | repair the vehicle. Damage prior to delivery to the dealer will |
273 | not disqualify repurchase under this subsection; |
274 | (b) All undamaged accessories and proprietary parts sold |
275 | to the dealer for resale within the 12 months prior to |
276 | termination, cancellation, or nonrenewal, if accompanied by the |
277 | original invoice, at 105 percent of the original net price paid |
278 | to the manufacturer or distributor to compensate the dealer for |
279 | handling, packing, and shipping the parts; and |
280 | (c) Any properly functioning diagnostic equipment, special |
281 | tools, current signage, and other equipment and machinery at 100 |
282 | percent of the dealer's net cost plus freight, destination, |
283 | delivery, and distribution charges and sales taxes, if any, if |
284 | it was purchased by the dealer within 5 years before |
285 | termination, cancellation, or nonrenewal and upon the |
286 | manufacturer's or distributor's request and can no longer be |
287 | used in the normal course of the dealer's ongoing business. The |
288 | manufacturer or distributor shall pay the dealer within 30 days |
289 | after receipt of the returned items. |
290 | Section 6. Section 320.3206, Florida Statutes, is created |
291 | to read: |
292 | 320.3206 Transfer of ownership; family succession.-- |
293 | (1) If a dealer desires to make a change in ownership by |
294 | the sale of the business assets, stock transfer, or otherwise, |
295 | the dealer shall give the manufacturer or distributor 30 days' |
296 | written notice before the closing, including all supporting |
297 | documentation as may be reasonably required by the manufacturer |
298 | or distributor. The manufacturer or distributor may not refuse |
299 | consent to the proposed change or sale and may not disapprove or |
300 | withhold approval of the change or sale unless the manufacturer |
301 | or distributor can show that its decision is based on the |
302 | manufacturer's reasonable criteria, which may include the |
303 | prospective transferee's business experience, moral character, |
304 | financial qualifications, and any criminal record. |
305 | (2) If the manufacturer or distributor rejects a proposed |
306 | change or sale, the manufacturer or distributor shall give |
307 | written notice of its reasons to the dealer within 30 days after |
308 | receipt of the dealer's notification and complete documentation. |
309 | The manufacturer or distributor has the burden of showing that |
310 | its rejection of the transfer or sale is reasonable. If the |
311 | manufacturer or distributor does not give notice of rejection, |
312 | the change or sale shall be deemed approved. |
313 | (3) It is unlawful for a manufacturer or distributor to |
314 | fail to provide a dealer an opportunity to designate, in |
315 | writing, a family member as a successor to the dealership in the |
316 | event of the death, incapacity, or retirement of the dealer. It |
317 | is unlawful to prevent or refuse to honor the succession to a |
318 | dealership by a family member of the deceased, incapacitated, or |
319 | retired dealer unless the manufacturer or distributor has |
320 | provided to the dealer written notice of its objections within |
321 | 30 days after receipt of the dealer's modification of the |
322 | dealer's succession plan. Grounds for objection include lack of |
323 | creditworthiness, conviction of a felony, lack of required |
324 | licenses or business experience, or other condition that makes |
325 | the succession unreasonable under the circumstances. The |
326 | manufacturer or distributor has the burden of showing the |
327 | unreasonableness of the succession. However, a family member may |
328 | not succeed to a dealership if the succession involves, without |
329 | the manufacturer's or distributor's consent, a relocation of the |
330 | business or an alteration of the terms and conditions of the |
331 | manufacturer/dealer agreement. |
332 | Section 7. Section 320.3207, Florida Statutes, is created |
333 | to read: |
334 | 320.3207 Warranty obligations.-- |
335 | (1) Each warrantor shall: |
336 | (a) Specify in writing to each of its dealer obligations, |
337 | if any, for preparation, delivery, and warranty service on its |
338 | products; |
339 | (b) Compensate the dealer for warranty service required of |
340 | the dealer by the warrantor; and |
341 | (c) Provide the dealer the schedule of compensation to be |
342 | paid and the time allowances for the performance of any work and |
343 | service. |
344 |
|
345 | The schedule of compensation must include reasonable |
346 | compensation for diagnostic work as well as warranty labor. |
347 | (2) Time allowances for the diagnosis and performance of |
348 | warranty labor must be reasonable for the work to be performed. |
349 | The warrantor shall authorize the dealer to undertake warranty |
350 | repairs without prior approval if the repairs require less than |
351 | 3 hours of labor. The compensation of a dealer for warranty |
352 | labor may not be less than the lowest retail labor rates |
353 | actually charged by the dealer for like nonwarranty labor as |
354 | long as such rates are reasonable. |
355 | (3) The warrantor shall reimburse the dealer for warranty |
356 | parts at actual wholesale cost plus a minimum 30-percent |
357 | handling charge and the cost, if any, of freight to return |
358 | warranty parts to the warrantor. |
359 | (4) Warranty audits of dealer records may be conducted by |
360 | the warrantor on a reasonable basis, and dealer claims for |
361 | warranty compensation may not be denied except for cause, such |
362 | as performance of nonwarranty repairs, material noncompliance |
363 | with the warrantor's published policies and procedures, lack of |
364 | material documentation, fraud, or misrepresentation. |
365 | (5) The dealer shall submit warranty claims within 45 days |
366 | after completing work. |
367 | (6) The dealer shall notify the warrantor verbally or in |
368 | writing if the dealer is unable to perform material or |
369 | repetitive warranty repairs as soon as is reasonably possible. |
370 | (7) The warrantor shall disapprove warranty claims in |
371 | writing within 45 days after the date of submission by the |
372 | dealer in the manner and form prescribed by the warrantor. |
373 | Claims not specifically disapproved in writing within 45 days |
374 | shall be construed to be approved and must be paid within 60 |
375 | days. |
376 | (8) It is a violation of ss. 320.3201-320.3211 for any |
377 | warrantor to: |
378 | (a) Fail to perform any of its warranty obligations with |
379 | respect to its warranted products; |
380 | (b) Fail to include, in written notices of factory |
381 | campaigns to recreational vehicle owners and dealers, the |
382 | expected date by which necessary parts and equipment, including |
383 | tires and chassis or chassis parts, will be available to dealers |
384 | to perform the campaign work. The warrantor may ship parts to |
385 | the dealer to effect the campaign work, and, if such parts are |
386 | in excess of the dealer's requirements, the dealer may return |
387 | unused parts to the warrantor for credit after completion of the |
388 | campaign; |
389 | (c) Fail to compensate any of its dealers for authorized |
390 | repairs effected by the dealer of merchandise damaged in |
391 | manufacture or transit to the dealer, if the carrier is |
392 | designated by the warrantor, factory branch, distributor, or |
393 | distributor branch; |
394 | (d) Fail to compensate any of its dealers for authorized |
395 | warranty service in accordance with the schedule of compensation |
396 | provided to the dealer pursuant to this section if performed in |
397 | a timely and competent manner; |
398 | (e) Intentionally misrepresent in any way to purchasers of |
399 | recreational vehicles that warranties with respect to the |
400 | manufacture, performance, or design of the vehicle are made by |
401 | the dealer as warrantor or cowarrantor; or |
402 | (f) Require the dealer to make warranties to customers in |
403 | any manner related to the manufacture of the recreational |
404 | vehicle. |
405 | (9) It is a violation of ss. 320.3201-320.3211 for any |
406 | dealer to: |
407 | (a) Fail to perform predelivery inspection functions, as |
408 | specified by the warrantor, in a competent and timely manner; |
409 | (b) Fail to perform warranty service work authorized by |
410 | the warrantor in a reasonably competent and timely manner on any |
411 | transient customer's vehicle of the same line-make; or |
412 | (c) Misrepresent the terms of any warranty. |
413 | (10) Notwithstanding the terms of any manufacturer/dealer |
414 | agreement, it is a violation of ss. 320.3201-320.3211 for: |
415 | (a) A warrantor to fail to indemnify and hold harmless its |
416 | dealer against any losses or damages to the extent such losses |
417 | or damages are caused by the negligence or willful misconduct of |
418 | the warrantor. The dealer may not be denied indemnification for |
419 | failing to discover, disclose, or remedy a defect in the design |
420 | or manufacturing of the recreational vehicle. The dealer shall |
421 | provide to the warrantor a copy of any suit in which allegations |
422 | are made that come within this subsection within 10 days after |
423 | receiving such suit. |
424 | (b) A dealer to fail to indemnify and hold harmless its |
425 | warrantor against any losses or damages to the extent such |
426 | losses or damages are caused by the negligence or willful |
427 | misconduct of the dealer. The warrantor shall provide to the |
428 | dealer a copy of any suit in which allegations are made that |
429 | come within this subsection within 10 days after receiving such |
430 | suit. |
431 | Section 8. Section 320.3208, Florida Statutes, is created |
432 | to read: |
433 | 320.3208 Inspection and rejection by the dealer.-- |
434 | (1) Whenever a new recreational vehicle is damaged prior |
435 | to transit to the dealer or is damaged in transit to the dealer |
436 | when the carrier or means of transportation has been selected by |
437 | the manufacturer or distributor, the dealer shall notify the |
438 | manufacturer or distributor of the damage within the timeframe |
439 | specified in the manufacturer/dealer agreement and: |
440 | (a) Request from the manufacturer or distributor |
441 | authorization to replace the components, parts, and accessories |
442 | damaged or otherwise correct the damage; or |
443 | (b) Reject the vehicle within the timeframe set forth in |
444 | subsection (3). |
445 |
|
446 | If the manufacturer or distributor refuses or fails to authorize |
447 | repair of such damage within 10 days after receipt of |
448 | notification or if the dealer rejects the recreational vehicle |
449 | because of damage, ownership of the new recreational vehicle |
450 | reverts to the manufacturer or distributor. |
451 | (2) The dealer shall exercise due care in custody of the |
452 | damaged recreational vehicle, but the dealer shall have no other |
453 | obligations, financial or otherwise, with respect to that |
454 | recreational vehicle. |
455 | (3) The timeframe for inspection and rejection by the |
456 | dealer must be part of the manufacturer/dealer agreement and may |
457 | not be less than 3 business days after the physical delivery of |
458 | the recreational vehicle. |
459 | (4) Any recreational vehicle that has, at the time of |
460 | delivery to the dealer, an unreasonable amount of miles on its |
461 | odometer, as determined by the dealer, may be subject to |
462 | rejection by the dealer and reversion of the vehicle to the |
463 | manufacturer or distributor. |
464 | Section 9. Section 320.3209, Florida Statutes, is created |
465 | to read: |
466 | 320.3209 Coercion of dealer prohibited.-- |
467 | (1) A manufacturer or distributor may not coerce or |
468 | attempt to coerce a dealer to: |
469 | (a) Purchase a product that the dealer did not order; |
470 | (b) Enter into an agreement with the manufacturer or |
471 | distributor; |
472 | (c) Take any action that is unfair or unreasonable to the |
473 | dealer; or |
474 | (d) Enter into an agreement that requires the dealer to |
475 | submit its disputes to binding arbitration or otherwise waive |
476 | rights or responsibilities provided under ss. 320.3201-320.3211. |
477 | (2) As used in this section, the term "coerce" includes, |
478 | but is not limited to, threatening to terminate, cancel, or not |
479 | renew a manufacturer/dealer agreement without good cause or |
480 | threatening to withhold product lines or delay product delivery |
481 | as an inducement to amending the manufacturer/dealer agreement. |
482 | Section 10. Section 320.3210, Florida Statutes, is created |
483 | to read: |
484 | 320.3210 Civil dispute resolution; mediation; relief.-- |
485 | (1) A dealer, manufacturer, distributor, or warrantor |
486 | injured by another party's violation of ss. 320.3201-320.3211 |
487 | may bring a civil action in circuit court to recover actual |
488 | damages. The court shall award attorney's fees and costs to the |
489 | prevailing party in such action. Venue for any civil action |
490 | authorized by this section must exclusively be in the county in |
491 | which the dealership is located. In an action involving more |
492 | than one dealer, venue may be in any county in which a dealer |
493 | who is party to the action is located. |
494 | (2) Before bringing suit under this section, the party |
495 | bringing suit for an alleged violation shall serve a written |
496 | demand for mediation upon the offending party. |
497 | (a) The demand for mediation shall be served upon the |
498 | offending party via certified mail at the address stated within |
499 | the agreement between the parties. In the event of a civil |
500 | action between two dealers, the demand must be mailed to the |
501 | address on the dealer's license filed with the department. |
502 | (b) The demand for mediation must contain a brief |
503 | statement of the dispute and the relief sought by the party |
504 | filing the demand. |
505 | (c) Within 20 days after the date a demand for mediation |
506 | is served, the parties shall mutually select an independent |
507 | certified mediator and meet with the mediator for the purpose of |
508 | attempting to resolve the dispute. The meeting place must be in |
509 | this state in a location selected by the mediator. The mediator |
510 | may extend the date of the meeting for good cause shown by |
511 | either party or upon stipulation of both parties. |
512 | (d) The service of a demand for mediation under this |
513 | subsection stays the time for the filing of any complaint, |
514 | petition, protest, or action under ss. 320.3201-320.3211 until |
515 | representatives of both parties have met with a mutually |
516 | selected mediator for the purpose of attempting to resolve the |
517 | dispute. If a complaint, petition, protest, or action is filed |
518 | before that meeting, the court shall enter an order suspending |
519 | the proceeding or action until the meeting has occurred and may, |
520 | upon written stipulation of all parties to the proceeding or |
521 | action that they wish to continue to mediate under this |
522 | subsection, enter an order suspending the proceeding or action |
523 | for as long a period as the court considers appropriate. A |
524 | suspension order issued under this paragraph may be revoked by |
525 | the court. |
526 | (e) The parties to the mediation shall bear their own |
527 | costs for attorney's fees and divide equally the cost of the |
528 | mediator. |
529 | (3) In addition to the remedies provided in this section |
530 | and notwithstanding the existence of any additional remedy at |
531 | law, a dealer or manufacturer may apply to a circuit court for |
532 | the grant, upon a hearing and for cause shown, of a temporary or |
533 | permanent injunction, or both, restraining any person from |
534 | acting as a dealer, manufacturer, distributor, or importer |
535 | without being properly licensed pursuant to this chapter, from |
536 | violating or continuing to violate any of the provisions of ss. |
537 | 320.3201-320.3211, or from failing or refusing to comply with |
538 | the requirements of ss. 320.3201-320.3211. Such injunction shall |
539 | be issued without bond. A single act in violation of the |
540 | provisions of ss. 320.3201-320.3211 is sufficient to authorize |
541 | the issuance of an injunction. |
542 | Section 11. Section 320.3211, Florida Statutes, is created |
543 | to read: |
544 | 320.3211 Penalties.-- |
545 | (1) The department may suspend or revoke any license |
546 | issued under s. 320.771 upon a finding that the dealer, |
547 | manufacturer, or distributor violated any provision of ss. |
548 | 320.3201-320.3211. The department may impose, levy, and collect |
549 | by legal process fines, in an amount not to exceed $1,000 for |
550 | each violation, against any person if it finds that such person |
551 | has violated any provision of ss. 320.3201-320.3211. Such person |
552 | is entitled to an administrative hearing pursuant to chapter 120 |
553 | to contest the action or fine levied, or about to be levied, |
554 | against the person. |
555 | (2) In addition to the civil and administrative remedies, |
556 | a person who violates any provision of ss. 320.3201-320.3211 |
557 | commits a misdemeanor of the second degree, punishable as |
558 | provided in s. 775.082 or s. 775.083. |
559 | Section 12. Section 320.8225, Florida Statutes, is amended |
560 | to read: |
561 | 320.8225 Mobile home and recreational vehicle |
562 | manufacturer, distributor, and importer license manufacturer's |
563 | license.-- |
564 | (1) LICENSE REQUIRED.--Any person who engages in the |
565 | business of a mobile home manufacturer or a recreational vehicle |
566 | manufacturer, distributor, or importer in this state, or who |
567 | manufactures mobile homes or recreational vehicles out of state |
568 | which are ultimately offered for sale in this state, shall |
569 | obtain annually a license for each factory location in this |
570 | state and for each factory location out of state which |
571 | manufactures mobile homes or recreational vehicles for sale in |
572 | this state, prior to distributing or importing mobile homes or |
573 | recreational vehicles for sale in this state. |
574 | (2) APPLICATION.--The application for a license must shall |
575 | be in the form prescribed by the department and shall contain |
576 | sufficient information to disclose the identity, location, and |
577 | responsibility of the applicant. The application must shall also |
578 | include a copy of the warranty and a complete statement of any |
579 | service agreement or policy to be utilized by the applicant, any |
580 | information relating to the applicant's solvency and financial |
581 | standing, and any other pertinent matter commensurate with |
582 | safeguarding the public. The department may prescribe an |
583 | abbreviated application for renewal of a license if the licensee |
584 | has had previously filed an initial application pursuant to this |
585 | section. The application for renewal must shall include any |
586 | information necessary to make bring current the information |
587 | required in the initial application. |
588 | (3) FEES.--Upon submitting an making initial application, |
589 | the applicant shall pay to the department a fee of $300. Upon |
590 | submitting a making renewal application, the applicant shall pay |
591 | to the department a fee of $100. Any applicant for renewal who |
592 | fails has failed to submit his or her renewal application by |
593 | October 1 shall pay a renewal application fee equal to the |
594 | original application fee. No fee is refundable. All fees must |
595 | shall be deposited into the General Revenue Fund. |
596 | (4) NONRESIDENT.--Any person applying for a license who is |
597 | not a resident of this state must designate shall have |
598 | designated an agent for service of process pursuant to s. |
599 | 48.181. |
600 | (5) REQUIREMENT OF ASSURANCE.-- |
601 | (a) Annually, prior to the receipt of a license to |
602 | manufacture mobile homes, the applicant or licensee shall submit |
603 | a surety bond, cash bond, or letter of credit from a financial |
604 | institution, or a proper continuation certificate, sufficient to |
605 | assure satisfaction of claims against the licensee for failure |
606 | to comply with appropriate code standards, failure to provide |
607 | warranty service, or violation of any provisions of this |
608 | section. The amount of the surety bond, cash bond, or letter of |
609 | credit must shall be $50,000. Only one surety bond, cash bond, |
610 | or letter of credit shall be required for each manufacturer, |
611 | regardless of the number of factory locations. The surety bond, |
612 | cash bond, or letter of credit must shall be to the department, |
613 | in favor of any retail customer who suffers a shall suffer loss |
614 | arising out of noncompliance with code standards or failure to |
615 | honor or provide warranty service. The department may shall have |
616 | the right to disapprove any bond or letter of credit that does |
617 | not provide assurance as provided in this section. |
618 | (b) Annually, prior to the receipt of a license to |
619 | manufacture, distribute, or import recreational vehicles, the |
620 | applicant or licensee shall submit a surety bond, or a proper |
621 | continuation certificate, sufficient to assure satisfaction of |
622 | claims against the licensee for failure to comply with |
623 | appropriate code standards, failure to provide warranty service, |
624 | or violation of any provisions of this section. The amount of |
625 | the surety bond must shall be $10,000 per year. The surety bond |
626 | must shall be to the department, in favor of any retail customer |
627 | who suffers shall suffer loss arising out of noncompliance with |
628 | code standards or failure to honor or provide warranty service. |
629 | The department may shall have the right to disapprove any bond |
630 | that which does not provide assurance as provided in this |
631 | section. |
632 | (c) The department shall adopt rules pursuant to chapter |
633 | 120 relating to consistent with this section in providing |
634 | assurance of satisfaction of claims under this section. |
635 | (d) The department shall, upon denial, suspension, or |
636 | revocation of any license, notify the surety company of the |
637 | licensee, in writing, that the license has been denied, |
638 | suspended, or revoked and shall state the reason for such |
639 | denial, suspension, or revocation. |
640 | (e) Any surety company that which pays any claim against |
641 | the bond of any licensee shall notify the department, in |
642 | writing, that it has paid such a claim and shall state the |
643 | amount of the claim. |
644 | (f) Any surety company that which cancels the bond of any |
645 | licensee shall notify the department, in writing, of such |
646 | cancellation, giving reason for the cancellation. |
647 | (6) LICENSE YEAR.--A license issued to a mobile home |
648 | manufacturer or a recreational vehicle manufacturer, |
649 | distributor, or importer entitles the licensee to conduct the |
650 | business of a mobile home or recreational vehicle manufacturer |
651 | for a period of 1 year from October 1 preceding the date of |
652 | issuance. |
653 | (7) DENIAL OF LICENSE.--The department may deny a mobile |
654 | home manufacturer or a recreational vehicle manufacturer, |
655 | distributor, or importer manufacturer's license on the ground |
656 | that: |
657 | (a) The applicant has made a material misstatement in his |
658 | or her application for a license. |
659 | (b) The applicant has failed to comply with any applicable |
660 | provision of this chapter. |
661 | (c) The applicant has failed to provide warranty service. |
662 | (d) The applicant or one or more of his or her principals |
663 | or agents has violated any law, rule, or regulation relating to |
664 | the manufacture or sale of mobile homes or recreational |
665 | vehicles. |
666 | (e) The department has proof of the unfitness of the |
667 | applicant. |
668 | (f) The applicant or licensee has engaged in previous |
669 | conduct in any state which would have been a ground for |
670 | revocation or suspension of a license in this state. |
671 | (g) The applicant or licensee has violated any provision |
672 | of the provisions of the National Mobile Home Construction and |
673 | Safety Standards Act of 1974 or any related rule or regulation |
674 | adopted by of the Department of Housing and Urban Development |
675 | promulgated thereunder. |
676 |
|
677 | Upon denial of a license, the department shall notify the |
678 | applicant within 10 days, stating in writing its grounds for |
679 | denial. The applicant is entitled to an administrative a public |
680 | hearing and may request that such hearing be held within 45 days |
681 | of denial of the license. All proceedings must shall be pursuant |
682 | to chapter 120. |
683 | (8) REVOCATION OR SUSPENSION OF LICENSE.--The department |
684 | shall suspend or, in the case of a subsequent offense, shall |
685 | revoke any license upon a finding that the licensee violated any |
686 | provision of this chapter or any other law of this state |
687 | regarding the manufacture, warranty, or sale of mobile homes or |
688 | recreational vehicles. The department may reinstate the license |
689 | if it When any license has been revoked or suspended by the |
690 | department, it may be reinstated if the department finds that |
691 | the former licensee has complied with all applicable |
692 | requirements of this chapter and an application for a license is |
693 | refiled pursuant to this section. |
694 | (9) CIVIL PENALTIES; PROCEDURE.--In addition to the |
695 | exercise of other powers provided in this section, The |
696 | department is authorized to assess, impose, levy, and collect by |
697 | legal process a civil penalty, in an amount not to exceed $1,000 |
698 | for each violation, against any licensee if it finds that a |
699 | licensee has violated any provision of this section or has |
700 | violated any other law of this state having to do with dealing |
701 | in motor vehicles. A Any licensee is shall be entitled to a |
702 | hearing pursuant to chapter 120 should the licensee wish to |
703 | contest the fine levied, or about to be levied, upon him or her. |
704 | Section 13. If any provision of this act or the |
705 | application thereof to any person or circumstance is held |
706 | invalid, the invalidity does not affect other provisions or |
707 | applications of the act which can be given effect without the |
708 | invalid provision or application and, to this end, the |
709 | provisions of this act are severable. |
710 | Section 14. This act shall take effect October 1, 2007. |