Louisiana Revised Statutes 32:1270 – Establishment of new marine dealerships or relocations; protests; procedure
Terms Used In Louisiana Revised Statutes 32:1270
- area of responsibility: shall mean the licensee's area of principal sales and service responsibility as specified by the franchise in effect with any licensee of the commission. See Louisiana Revised Statutes 32:1252
- Boat: means a component of a marine product that is not equipped with an outboard or inboard/outboard motor attached thereto. See Louisiana Revised Statutes 32:1252
- Boat package: means a boat that is equipped from its manufacturer or distributor with an inboard, outboard, or inboard/outboard motor or engine attached thereto, installed thereon, or shipped or invoiced together as a package. See Louisiana Revised Statutes 32:1252
- Commission: means the Louisiana Motor Vehicle Commission created by this Chapter or its designee. See Louisiana Revised Statutes 32:1252
- Dealer: means any person licensed to sell a motor vehicle, specialty vehicle, or recreational product subject to regulation by this Chapter. See Louisiana Revised Statutes 32:1252
- Franchise: means any written contract or selling agreement between a motor vehicle or recreational products dealer, a motor vehicle lessor, or a specialty vehicle dealer and a manufacturer, motor vehicle lessor franchisor, or converter of a new motor vehicle or specialty vehicle or its distributor or factory branch by which the motor vehicle or recreational products dealer, motor vehicle lessor, or specialty vehicle dealer is authorized to engage in the business of selling or leasing the specific makes, models, or classifications of new motor vehicles, recreational products, or specialty vehicles marketed or leased by the manufacturer, motor vehicle lessor franchisor, or converter and designated in the franchise agreement or any addendum thereto. See Louisiana Revised Statutes 32:1252
- Manufacturer: means any person, resident or nonresident, who fabricates, manufactures, or assembles motor vehicles, recreational products, or new, remanufactured, reconditioned, or rebuilt motor vehicle or marine motors. See Louisiana Revised Statutes 32:1252
- Marine dealer: means any person who holds a bona fide contract or franchise with a manufacturer or distributor of marine products, except for either of the following:
(a) A person engaged in the business of renting or selling new or used watercraft or boats adapted to be powered only by an occupant's energy and who holds a license as a recreational products dealer pursuant to the provisions of this Chapter. See Louisiana Revised Statutes 32:1252
- marine engine: means a motor that is a component of a marine product that is sold separately from a boat when delivered to the marine dealer by the distributor or manufacturer. See Louisiana Revised Statutes 32:1252
- Recreational products: means new and unused motorcycles, all-terrain vehicles, marine products, recreational vehicles, and trailers as defined in this Chapter. See Louisiana Revised Statutes 32:1252
- Recreational products dealer: means any person who, for a commission or with intent to make a profit or gain of money or other thing of value, buys, sells, brokers, exchanges, auctions, offers, or attempts to negotiate a sale or exchange of an interest in recreational products and who is engaged wholly or in part in the business of buying and selling recreational products in the state of Louisiana. See Louisiana Revised Statutes 32:1252
- Trailer: means every single vehicle without motive power designed for carrying property or passengers wholly on its own structure, drawn by a motor vehicle which carries no part of the weight and load of the trailer on its own wheels and having one or more load carrying axles including but not limited to utility trailers, boat trailers, recreational trailers, semitrailers, livestock trailers, tow dollies and dump trailers, and excluding towable equipment as defined in this Chapter. See Louisiana Revised Statutes 32:1252
- Trolling motor: means any self-contained unit composed of an electric motor, propeller, and controls that may be affixed to a boat and that acts as a source, but not typically the primary source, of propulsion for the boat. See Louisiana Revised Statutes 32:1252
- Watercraft: means any contrivance used or designated for navigation on water, including but not limited to a personal watercraft as defined in Louisiana Revised Statutes 32:1252
A. Whenever the commission receives an application for a recreational products dealer‘s license that would add a new marine dealership, it shall first notify the existing licensed marine dealership or dealerships selling the same-line makes, models, or classifications if the new dealership’s proposed location is within the existing dealer’s area of responsibility. Any same-line makes, models, or classifications dealership whose area of responsibility includes the location of the proposed new marine dealership may object to the granting of the license.
B. Whenever the commission receives an application for a recreational products dealer‘s license which would relocate an existing marine dealership, it shall first notify the existing licensed marine dealership or dealerships selling the same-line makes, models, or classifications if the dealership’s proposed new location is within the existing dealer’s area of responsibility. The existing same-line makes, models, or classifications dealership or dealerships shall have the right to object to the granting of the license only if the proposed relocation is within a radius of seven miles of its facility. However, without regard to distance, whenever the commission receives an application for the relocation of a marine dealership which would add an additional marine dealership to an existing same-line makes, models, or classifications dealership’s area of responsibility, the affected dealership shall have the right to object.
C. The objection shall be in writing and shall be received by the commission within a fifteen-day period after receipt of the notice. The fifteen-day objection period shall be waived upon written notification to the commission from all licensees entitled to object that the licensees have no objections to the proposed change or addition for which the notice of intent was issued. If a timely objection is lodged, and prior to the issuance of the license, the commission shall hold a hearing within thirty days after receipt of the objection and issue its decision within ninety days after date of the hearing. Notice of hearing and an opportunity to participate therein shall be given to the manufacturer or distributor, the applicant for the license as a marine dealer, and to the protesting dealership or dealerships.
D. Whenever the commission receives an objection pursuant to the provisions of Subsection A of this Section, or whenever the commission receives an objection pursuant to the assignment of the marine dealer’s area of principal sales and service responsibility, the commission shall consider the following and may consider any other relevant factors in determining whether there is good cause to approve or reject the assignment of the marine dealer’s area of principal sales and service responsibility, or to issue a license:
(1) Whether the community or territory can support an additional marine dealership.
(2) The financial impact on both the applicant and the existing marine dealership or dealerships.
(3) Whether the existing marine dealerships of the same-line makes, models, or classifications in the dealership’s area of responsibility are providing adequate representation, competition, and convenient consumer care for the marine products of the same-line makes, models, or classifications located within that area.
(4) Whether the issuance of the license would increase competition, be in the public interest, or both.
E. In disputes between the marine dealers and manufacturers and distributors regarding the execution of an agreement that would add a new same-line make marine dealership or would add the same product line regardless of brand name within the area of responsibility of an existing marine dealer, the name brand of the boat determines whether a dealer may enter into a franchise for a particular boat package or boat package line. The marine motor, marine engine, boat trailer, or any accessory made a part of a boat package shall not be the subject of, or a consideration in, an area of responsibility dispute for violation involving the boat package.
F. A manufacturer or distributor of a marine motor or marine engine may, in its discretion, enter into a warranty service agreement with a marine dealer of a boat package that is packaged with its particular brand marine motor or engine without violating the area of responsibility of any other marine dealer that has a franchise of that brand marine motor or engine. However, the warranty service agreement shall not be construed to permit the marine dealer to sell the marine motor or engine separate from the boat package, and the marine dealer shall not hold itself out to be a full-line or loose marine motor or engine dealership.
G. The provisions of this Section shall not apply when the marine products consist of a trolling motor, boat trailer, or watercraft trailer.
Acts 2012, No. 326, §1; Acts 2014, No. 111, §1.