Thu Nov 1, 2018
Author: RV News Staff
The Pennsylvania Legislature has passed SB 764, a law removing RV dealerships from the automobile franchise law and placing them under a new law that recognizes some of the key differences between the automotive and RV industries. Laws separating the RV industry from the automotive industry help manufacturers and dealers develop and manage agreements between themselves. The new law considers that unlike the automotive industry, RV dealers work with multiple manufacturers and typically RVs are made up of parts from different manufacturers.
The new law, which doesn't take effect until October 24, 2019, includes industry-standard definitions on motorhomes, travel trailers, fifth wheels, folding camping trailers, park model RVs and truck campers. The law also spells out procedures for written agreements, territories and alterations of agreements between dealers and manufacturers; cancellation of dealer-manufacturer agreements; succession or transfer of dealerships; indemnification of a dealer from warranty or co-warranties of manufacturer products; warranty obligation; and other business arrangements affecting the dealer-manufacturer relationship.
The law also has provisions for changing salespersons’ licenses from one dealership to another, off-premise RV sales, vehicle shows, grounds for disciplinary proceedings and other actions which differ between the RV and automotive industries.
The Pennsylvania law's passage marks the fourteenth state passing a law following the RVIA's model franchise law. Six other states have enacted laws that don't follow the RVIA model but do provide a law separating the RV industry from automotive industry regulations.