Stay Up To Date on Dealer Protection Legislation

Don’t fall behind on the latest legal updates in the equipment industry. The newest edition of the State Equipment Dealer Law Book is now available to members. Navigating the legal aspects of the industry has become more complex over the years, and the Law Book is here to provide you with all of the updates for your state and to give you a better understanding of dealer-protective legislation.

This book focuses in part on state laws governing the relationship between distributors and manufacturers. The need for state dealer laws continues to be debated within the industry, but AED maintains a neutral approach to the situation while offering resources to help members navigate dealer protection legislation. AED believes it is important to maintain focus on the laws that members need to be aware of to operate successfully.

To put the controversial topic in perspective, proponents of these laws believe that protective statutes are needed to ensure a minimum level of fairness between both dealers and manufacturers. Some proponents feel that without these laws, there is an imbalance in the bargaining relationship between dealers and manufacturers that allows manufacturers to put much of the responsibility onto the dealer. Opponents of these laws believe that the majority of dealer agreements between manufacturers and dealers are already fair between both parties, and that these laws constitute inappropriate action by the government. They believe that restricting the manufacturers’ ability to choose what dealers they work with can have negative effects on improving customer service and the quality of their distribution networks.

While both sides of this debate feel strongly about their positions, it is important to note that through the years, the number of state dealer laws has been continually increasing. By June 2020, there were only three jurisdictions that had not enacted laws specific to the equipment distribution industry: New Jersey, Hawaii and the District of Columbia. This fact proves that it is vital to be aware of the newest updates and details on the laws in your state. No matter what part of the country you work in, this book will inform you of updates to these laws that you need to know about.

In the first part of the book, AED includes a chart that covers the major provisions of each state’s dealer statute(s). The major provisions included in the chart are equipment covered by the statute, good cause required for termination, buy-back required from the terminated dealer, notice of termination required, immediate termination available, time required to correct deficiencies, statute applies to transferability, special provision requiring return of surplus parts, special provisions regarding warranties, and restriction on waiver of statutory protection. The book provides a detailed description of each provision that is listed, making it easy to understand exactly what the chart is depicting.

The second portion of the book focuses on the statutes themselves, organized by state. Readers can find helpful online resources listed after each law, in addition to the law’s legislative history, and court decisions that assist in interpreting these statutes. Combined, the two portions of this book offer readers a clear understanding of what is expected in the industry from a legal standpoint.

Although we have made every effort to ensure that all current statutes are included, we cannot guarantee that every statute in every state has been identified. This book should not be relied on as the final description of the provision of every state’s laws (or lack thereof). Moreover, the chart should never be solely relied on as the definitive law in the state. No action should be taken solely from reliance on this book.

AED trusts that the book will provide readers with an updated sense of their rights and responsibilities under the law. We are proud to be able to provide this information, as the association strives to do whatever it can to help you better operate your dealership. Pricing for the State Equipment Dealer Law Book is $395 for members and $790 for nonmembers. 

Related Articles