July 13 - August 30, 2010

Ohio Franchise Law Overhaul: Protecting Your Future

New Franchise Law Provisions Effective 9/10/10

Presented by OADA, and David Brown of Stockamp & Brown, LLC

On June 10, 2010, Governor Strickland signed OADA backed Senate Bill 204, which recently received unanimous approval from both the Ohio Senate and Ohio House of Representatives.  Senate Bill 204 updates Ohio’s Motor Vehicle Franchise Law.  While the numbers of amendments to this law are too numerous to list in their entirety within this brochure, a few examples include:

• Manufacturers may not unfairly change or unilaterally amend a dealer’s sales expectancy or sales penetration without reasonable cause
• Manufacturers may not require a dealer to renovate an existing dealership in order to receive a new model unless the renovation is necessary to sell or service the vehicle due to the technology of the vehicle
• Manufacturers cannot require dealers to pay an additional fee or accept additional inventory in order to receive a vehicle
• Manufacturers may not use a partially or wholly owned financial institution to accomplish what is otherwise prohibited by a manufacturer under the law
• Creates a defined audit window (one year from the date of submission) for sales and warranty audits absence fraud
• Creates a rebuttable presumption that dealer did not know or should not have known that a vehicle was sold for export if the vehicle was titled in the United States
• Manufacturers cannot establish or apply any performance standard measuring franchisee performance that is not fair, reasonable and equitable
• Manufacturers cannot unreasonably require dealers to maintain exclusive facilities, the burden of proof being on the manufacturer to show that reasonable business considerations justify exclusivity.
• Strengthens dealer protections against discrimination with any manufacturer program including internet listings, sales leads, dealer recognition programs, etc
• Protects dealer customer lists

And Much, Much More!

The uniqueness and importance of Ohio’s Motor vehicle law cannot be over emphasized.  These laws are important because they establish a more even playing field on which dealers and their manufacturers operate.  They also provide assurance to financial institutions, vendors, and others that a manufacturer will not arbitrarily terminate a dealership. 

State franchise laws are unique in that franchisees operating a McDonalds, Burger King, Quiznos, or a John Deere dealership do not have these same protections.  In these instances, franchisees only have the agreement written by their franchisor that establishes the rules of engagement between the parties.  Like a Dealer Sales and Service Agreement written by your manufacturer, these agreements are written by the franchisor and you can be assured their interests are represented, not necessarily those of the franchisee.

Whether or not an individual dealer has actually had to exercise their rights under the law, the very existence of Ohio’s franchise law benefits all dealers.  The reality is that most dealers do not understand their rights under the franchise law.  At OADA we believe dealers need to know their rights.  This seminar will focus on the recent updates created by SB 204, address common questions, discuss prohibited manufacturer conduct, as well as how to exercise your rights.    

This seminar will be presented by OADA and David Brown from the law firm of Stockamp & Brown.  David’s practice specializes in representing dealers in the area of franchise and consumer law.

Please see the enclosed registration form.  For more information please contact DeAnna Zahniser at OADA, (800) 686-9100, ext. 108 or dzahniser@oada.com. 

Cincinnati

Tuesday, July 13, 2010, 8:30am-noon

Kings Island Resort & Conference Center

5691 Kings Island Drive

Mason

Dayton

Tuesday, July 13, 2010, 1:30pm-5:00pm

Dayton Marriott

1414 S. Patterson Boulevard

Dayton

Youngstown

Tuesday, August 3, 2010, 8:30am-noon

Holiday Inn Youngstown South-Boardman

7410 South Avenue

Boardman

Akron

Tuesday, August 3, 2010, 1:30pm-5:00pm

Hilton Akron Fairlawn

3180 W. Market Street

Akron

Toledo

Friday, August 6, 2010, 8:30am-noon

Holiday Inn French Quarter

10630 Fremont Pike

Perrysburg

Columbus

Monday, August 30, 2010, 8:30am-noon

Crowne Plaza Columbus Dublin

600 Metro Place North

Dublin 

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