Coercion or Attempted Coercion of Dealer Prohibited

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  1. A manufacturer or distributor shall 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 this chapter.
  2. As used in this section, “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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