Coercion of dealer prohibited

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  1. A manufacturer or distributor may not coerce or attempt to coerce a dealer to:
    1. Purchase a product that the dealer did not order;
    2. Enter into an agreement with the manufacturer or distributor; or
    3. Enter into an agreement that requires the dealer to submit its disputes to binding arbitration or otherwise waive rights or responsibilities provided under Sections 63-17-201 through 63-17-221.
  2. As used in this section, the term "coerce" includes, but is not limited to, threatening to terminate, cancel or not renew a manufacturer-dealer agreement without good cause or threatening to withhold product lines the dealer is entitled to purchase pursuant to the manufacturer-dealer agreement or delay product delivery as an inducement to amending the manufacturer-dealer agreement.


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