Advertising Campaigns; Change in Capital Structure or Ownership; Manner of Distribution; Increased Prices; Discrimination; Unreasonable Restrictions or Changes

  1. Law
  2. Georgia Code
  3. Commerce and Trade
  4. Selling and Other Trade Practices
  5. Motor Vehicle Franchise Practices
  6. Motor Vehicle Fair Practices
  7. Advertising Campaigns; Change in Capital Structure or Ownership; Manner of Distribution; Increased Prices; Discrimination; Unreasonable Restrictions or Changes

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  1. No franchisor shall require, attempt to require, coerce, or attempt to coerce any dealer in this state:
    1. To participate monetarily in an advertising campaign or contest or to purchase any promotional materials, training materials, showroom or other display decorations, or materials at the expense of the dealer; or
    2. To change or refrain from changing the capital structure or ownership of the dealer or the means by or through which the dealer finances the operation of the dealership, provided the dealer at all times meets any reasonable capital standards determined by the franchisor in accordance with uniformly applied criteria and provided no change in the capital structure shall cause a change in the principal management or have the effect of a sale of the franchise without the consent of the franchisor, which consent shall not unreasonably be withheld.
  2. No franchisor shall:
    1. Refuse to disclose to any dealer the manner and mode of distribution of the same line make as handled by the dealer within the dealer's market area;
    2. Increase prices of new motor vehicles which the dealer had ordered for consumers prior to the dealer's receipt of the written official price increase notification.A sales contract signed by a consumer shall constitute evidence of each such order, provided the vehicle is in fact delivered to that customer.Price differences applicable to new models or series shall not be considered a price increase.Price changes caused by the addition to a motor vehicle of required or optional equipment, revaluation of the United States dollar in the case of foreign-make vehicles or components, or an increase in transportation charges due to increased rates imposed by carriers shall not be subject to the provisions of this paragraph;
    3. Discriminate unfairly among its dealers with respect to any aspect of operating a motor vehicle dealership;
    4. Establish or create:
      1. By agreement or otherwise, unreasonable restrictions relative to noncompetition covenants or site control, whether by sublease, collateral pledge of lease, agreement, or other means;
      2. Reserved;
      3. By agreement or otherwise, an option to purchase the dealership or its assets from the dealer; or
      4. By agreement or otherwise, unreasonable requirements to comply with subjective standards or other matters incident to the operation of the dealership; or
    5. Unreasonably change the market area of a dealer as set forth in the dealer's franchise agreement.

(Code 1981, §10-1-663, enacted by Ga. L. 1993, p. 1585, § 2; Ga. L. 1999, p. 1194, §§ 8, 9; Ga. L. 2000, p. 1175, § 1.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1999, punctuation was revised at the end of subparagraph (b)(4)(B).


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