482.3638 - Unfair practices: Release from liability; limitations on settlement of controversies; unlawful terms or conditions of franchise agreements; price increases; participation in ownership; unla
482.3638 Unfair practices: Release from liability; limitations on settlement of controversies; unlawful terms or conditions of franchise agreements; price increases; participation in ownership; unlawful acts against franchise; preventing dealer from selling or servicing another line or make of new vehicles. It is an unfair act or practice for any manufacturer, distributor or factory branch, directly or through any representative, to:
1. Require a dealer to agree to a release, assignment, novation, waiver or estoppel which purports to relieve any person from liability imposed by this chapter, or require any controversy between a dealer and a manufacturer, distributor or representative to be referred to any person or agency except as set forth in this chapter if that referral would be binding on the dealer, except that this section does not prevent the parties from mutually agreeing to arbitration pursuant to law.
2. Require a dealer to agree to the jurisdiction, venue or tribunal in which a controversy arising under the provisions of the franchise agreement may or may not be submitted for resolution, or prohibit a dealer from bringing an action in any forum allowed by Nevada law.
3. Require a dealer to agree to a term or condition of a franchise agreement which violates any provision of NRS 482.36311 to 482.36425, inclusive.
4. Require a dealer to waive a trial by jury in actions involving the manufacturer, distributor or factory branch.
5. Increase prices of new vehicles which the dealer had ordered for private retail consumers before the dealer receives the written official notification of a price increase. A sales contract signed by a retail consumer constitutes evidence of each order. Price changes applicable to new models or series of vehicles at the time of the introduction of the new models or series shall not be deemed a price increase. Price changes caused by:
(a) The addition to a vehicle of equipment formerly optional as standard or required equipment pursuant to state or federal law;
(b) Revaluation of the United States dollar in the case of foreign-made vehicles; or
(c) Transportation cost increases,
Ê are not subject to this subsection.
6. Deny the principal owner the opportunity to designate his or her spouse, a member of his or her family, a qualified manager, or a trust or other artificial person controlled by any of them as entitled to participate in the ownership of:
(a) The franchised dealership;
(b) A successor franchised dealership for 2 years or a longer reasonable time after the incapacity of the principal owner; or
(c) A successor franchised dealership after the death of the principal in accordance with NRS 482.36396 to 482.36414, inclusive.
7. Modify unilaterally, replace, enter into, relocate, terminate or refuse to renew a franchise in violation of law.
8. Terminate or refuse to approve a transfer of a franchise for a dealership, or honor the right of succession set forth in a franchise agreement or refuse to approve the transfer of a controlling interest in a dealership because the dealer has, before October 1, 1997, established an additional franchise to sell or service another line or make of new vehicles in the same facility as the existing dealership.
9. Prevent a dealer from establishing, on or after October 1, 1997, an additional franchise to sell or service another line or make of new vehicles in the same facility as the existing dealership if the dealer:
(a) Submits a written request for approval of the additional franchise to the manufacturer, distributor or factory branch of the existing dealership;
(b) Complies with the reasonable requirements for approval set forth in the franchise of the existing dealership; and
(c) Obtains the approval of the manufacturer, distributor or factory branch of the existing dealership.
Ê The manufacturer, distributor or factory branch shall notify the dealer in writing of its decision to approve or deny the request within 90 days after receipt of the request. The manufacturer, distributor or factory branch shall not unreasonably withhold its approval. If the request is denied, the material reasons for the denial must be stated. Failure to approve or deny the request, in writing, within 90 days has the effect of approval.
(Added to NRS by 1977, 556; A 1985, 1833; 1987, 254; 1989, 208; 1997, 3214; 1999, 2511; 2003, 20th Special Session, 302; 2005, 1147)