Nevada Code § 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
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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 or waives any provision of NRS 482.36311 to 482.36425 , inclusive. A waiver of any
provision of NRS 482.36311 to 482.36425 , inclusive, is void and
unenforceable.
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,
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.
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.

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