HB922 - MERCHANDISING PRACTICES - Thomason, Larry
HB922 REQUIRES MANUFACTURERS AND WHOLESALERS OF MOTORCYCLES AND ALL TERRAIN VEHICLES TO REPURCHASE UNUSED INVENTORY FROM DEALERS IN CERTAIN SITUATIONS.
Sponsor: Thomason, Larry (163) Effective Date: 00/00/00
CoSponsor: LR Number: 2456-01
Last Action: COMMITTEE: TRANSPORTATION
01/15/96 - Reported Do Pass with amendments (H)
HB922
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
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BILL SUMMARIES

COMMITTEE

HB 922, HCA 1 -- MERCHANDISING PRACTICES

SPONSOR:  Thomason

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Transportation by a vote of 8 to 3.

This bill adds motorcycles, all-terrain vehicles and their
implements, machinery, attachments and repair parts to the
statutes relating to machinery inventory and the repurchase on
termination of a dealership.  Manufacturers cannot terminate,
cancel, or fail to renew a dealership agreement or change the
competitive circumstances of a dealership without good cause.
The bill spells out what circumstances constitute good cause.
Manufacturers must give a 90 day notice of termination,
cancellation, or nonrenewal of a dealership agreement.  The
notice must also provide the dealer a 60 day period in which to
cure any claims deficiency.  The bill also establishes
manufacturer prohibitions against dealers.

HCA 1 -- If a dealer is forced out of business because of non--
renewal of a contract or franchise, the manufacturer must
purchase back from such dealer the unused inventory purchased
from the manufacturer at invoice cost.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this legislation seeks to
regulate franchisor conduct in a modest way.  It prohibits
franchisors from forcing dealers to purchase parts and
accessories, prohibits tying parts and accessories purchases to
vehicle allocation, and prohibits price discrimination.

Testifying for the bill were Representative Thomason; and
Missouri PowerSport Dealers.

OPPONENTS:  Those who oppose the bill say that such legislation
is too intrusive.

Testifying against the bill was Motorcycle Manufactures
Association.

Robert Triplett, Research Analyst


INTRODUCED

HB 922 -- Merchandising Practices

Sponsor:  Thomason

This bill adds motorcycles, all-terrain vehicles and their
implements, machinery, attachments and repair parts to the
statutes relating to machinery inventory and the repurchase on
termination of a dealership.  Manufacturers cannot terminate,
cancel, or fail to renew a dealership agreement or change the
competitive circumstances of a dealership without good cause.
The bill spells out what circumstances constitute good cause.
Manufacturers must give a 90 day notice of termination,
cancellation, or nonrenewal of a dealership agreement.  The
notice must also provide the dealer a 60 day period in which to
cure any claims deficiency.  The bill also establishes
manufacturer prohibitions against dealers.


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