407.1346. New RV dealership, restrictions on operation or ownership by a manufacturer.

New RV dealership, restrictions on operation or ownership by amanufacturer.

407.1346. 1. A manufacturer shall be prohibited from owning oroperating a new RV dealership in this state. It is not a violation of thissection for a manufacturer to own or operate a new RV dealership:

(1) For a temporary period of not more than sixty months if thedealership is for sale at a reasonable price and on reasonable terms andconditions to an independent qualified buyer; or

(2) In a bona fide relationship with an independent person who:

(a) Is required to make a significant investment in the new RVdealership subject to loss; and

(b) Operates the dealership and can reasonably expect to acquire fullownership of the dealership within a reasonable time and under reasonableterms and conditions; or

(3) If the manufacturer has no other dealers of the same line-make inthis state.

2. Nothing in this section shall be deemed to prohibit a manufacturerfrom owning a minority interest in an entity that owns RV dealerships ofthe same line-make manufactured and sold through dealers in this state bythe manufacturer, provided that all of the following conditions are met atthe time of acquisition and continue to be met during the time the entitymaintains ownership:

(1) The interest owned by the manufacturer in said entity shall notexceed forty-five percent of the total ownership;

(2) All the manufacturer's dealer agreements confer rights on thedealer of the line-make to develop and operate, within a defined geographicterritory or area, in as many dealership facilities as the dealer andmanufacturer shall agree are appropriate.

3. Subsections 1 and 2 of this section shall not apply tomanufacturers that own or operate an RV dealership in this state as ofAugust 28, 2001.

(L. 2001 H.B. 575)

Effective 8-01-02