What Is The Impact Of State Regulations Regarding Franchisors?
The federal Automobile Dealers Day in Court Act regulates termination and non-renewal of automobile dealerships. Among other things, it requires that automobile manufacturers act in good faith in performing or complying with any of the terms or provisions of the franchise, or in terminating, canceling, or not renewing the franchise with the dealer A specific provision of the Federal statutes, 29 USC 959, requires that a debtor comply with state law in connection with the operation of its business. Consequently, the reconciliation of the applicable state laws regarding the relationship between the debtor and the dealers will undoubtedly be explored in the event of a Chapter 11 proceeding for a domestic manufacturer. Legislation has been enacted in numerous states to eradicate perceived abuses in franchisor or manufacturer practices in its business dealings with its franchisees and dealers (e.g., termination and non-renewal). These laws articulate numerous prohibited practices, ranging f
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- What Is The Impact Of State Regulations Regarding Franchisors?
