Code of Alabama

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32-17-1
Section 32-17-1 Compensation by manufacturer, etc., for work performed by dealer or
representative. No manufacturer of motor vehicles, distributor, distributor branch or factory
branch or officer, agent or other representative thereof shall fail to compensate adequately
and fairly its dealer or representative for labor, parts or expenses incurred by the dealer
or representative with regard to factory warranty agreements performed by the dealer or representative.
In no event shall said manufacturer of motor vehicles, distributor, distributor branch or
factory branch pay to its dealer or representative a labor rate per hour for warranty work
less than that charged by said dealer or representative to its retail customer. Conversely,
no franchised dealer or representative shall charge its manufacturer, distributor, distributor
branch or factory branch a labor rate per hour in excess of the rate charged its retail customers.
(Acts 1971, No. 2053, p. 3304, §1.)...
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8-20-4
Section 8-20-4 Unfair and deceptive trade practices. Notwithstanding the terms, provisions,
or conditions of any dealer agreement or franchise or the terms or provisions of any waiver,
prior to the termination, cancellation, or nonrenewal of any dealer agreement or franchise,
the following acts or conduct shall constitute unfair and deceptive trade practices: (1) For
any manufacturer, factory branch, factory representative, distributor, or wholesaler, distributor
branch, or distributor representative to coerce or attempt to coerce any motor vehicle dealer
to do any of the following: a. To accept, buy, or order any motor vehicle or vehicles, appliances,
equipment, parts, or accessories therefor, or any other commodity or commodities or service
or services which such motor vehicle dealer has not voluntarily ordered or requested except
items required by applicable local, state, or federal law; or to require a motor vehicle dealer
to accept, buy, order, or purchase such items in order to...
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8-20-7
Section 8-20-7 Warranty obligations to dealers. (a) Every manufacturer, distributor,
or wholesaler, factory branch, factory representative, distributor branch, or distributor
representative shall specify in writing to each of its motor vehicle dealers the dealer's
obligation for warranty service on its products, shall compensate the motor vehicle dealer
for warranty service required of the dealer by the manufacturer, distributor, or wholesaler,
factory branch, factory representative, distributor branch, or distributor representative
and shall provide the dealer the schedule of compensation to be paid such dealer for parts,
work, and service in connection with warranty services, and the time allowance for the performance
of such work and service. (b) In no event shall such schedule of compensation fail to include
reasonable compensation for diagnostic work, service, labor, and parts. Time allowances for
the diagnosis and performance of warranty work and service shall be reasonable and...
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32-17-2
Section 32-17-2 Penalty. Any manufacturer of motor vehicles, distributor, distributor
branch or factory branch or officer, agent or other representative thereof, or any dealer
or representative of the same, who shall violate any provision of this chapter shall be guilty
of a misdemeanor and shall be fined a sum not less than $10.00 nor more than $500.00 for each
such violation. (Acts 1971, No. 2053, p. 3304, §2.)...
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8-20-6
Section 8-20-6 Predelivery obligations. Every manufacturer or wholesaler or distributor,
factory branch, factory representative, distributor branch or distributor representative shall
specify to the motor vehicle dealer the delivery and preparation obligations of its motor
vehicle dealers prior to delivery of new motor vehicles to retail buyers. A copy of the delivery
and preparation obligations of its motor vehicle dealers and a schedule of the compensation
to be paid to its motor vehicle dealers for the work and services they shall be required to
perform in connection with such delivery and preparation obligations shall be presented to
the dealer and the obligations specified therein shall constitute any such dealer's only predelivery
obligations as between such dealer and such manufacturer or wholesaler or distributor. The
compensation as set forth on said schedule shall be reasonable. (Acts 1981, No. 81-390, p.
596, §6.)...
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8-20-3
Section 8-20-3 Definitions. For the purpose of this chapter, the following terms shall
have the meanings respectively ascribed to them in this section, except where the context
clearly indicates a different meaning: (1) COERCE. The failure to act in good faith in performing
or complying with any term or provision of the franchise or dealer agreement, except that
recommendation, persuasion, urging, or argument shall not be deemed to constitute a lack of
good faith. (2) DEALER AGREEMENT or FRANCHISE. The written contract between any new motor
vehicle manufacturer and any new motor vehicle dealer which purports to fix the legal rights
and liabilities of the parties to such agreement or contract, and pursuant to which the dealer
purchases and resells the franchise product or leases or rents the dealership premises. (3)
DISTRIBUTOR or WHOLESALER. A person, whether a resident or a nonresident, other than a manufacturer,
who sells or distributes motor vehicles to motor vehicle dealers or who...
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8-20-7.1
Section 8-20-7.1 Compensation of dealers for recall repairs. (a) For the purposes of
this section, the following words have the following meanings: (1) MANUFACTURER. A
manufacturer, distributor or wholesaler, factory branch, or distributor branch. (2) STOP-SALE
ORDER. A notification issued by a manufacturer to its franchised new motor vehicle dealers
stating that certain used vehicles in inventory shall not be sold or leased, at either retail
or wholesale, due to a federal safety recall for a defect or a noncompliance, or a federal
emissions recall. (b) A manufacturer shall compensate its new motor vehicle dealers for all
labor and parts required by the manufacturer to perform recall repairs. Compensation for recall
repairs shall be reasonable. If parts or a remedy are not reasonably available to perform
a recall service or repair on a used vehicle held for sale by a dealer authorized to sell
and service new vehicles of the same line-make within 30 days of the manufacturer issuing
the...
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8-21C-7
Section 8-21C-7 Duties of warrantors; warranty claims. (a) Each warrantor shall do all
of the following: (1) Specify in writing each of its dealer obligations, if any, for preparation,
delivery, and warranty service on its products. (2) Compensate a dealer for warranty service
required of the dealer by the warrantor. (3) Provide a dealer the schedule of compensation
to be paid and the time allowances for the performance of any work and service. The schedule
of compensation shall include reasonable compensation for diagnostic work as well as warranty
labor. (b) Time allowances for the diagnosis and performance of warranty labor shall be reasonable
for the work to be performed. In the determination of what constitutes reasonable compensation
under this section, the principal factors to be given consideration shall be the actual
wage rates being paid by the dealer and the actual retail labor rate being charged by the
dealers in the community in which the dealer is doing business. The...
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8-21C-2
Section 8-21C-2 Definitions. As used in this chapter, the following words shall have
the following meanings: (1) AREA OF SALES RESPONSIBILITY. The geographical area, agreed to
by the dealer and the manufacturer or the distributor or in the manufacturer and dealer agreement,
within which the dealer has the exclusive right to display or sell new recreational vehicles
of a particular line-make of the manufacturer or distributor to the retail public. (2) CAMPING
TRAILER. A vehicular unit that is mounted on wheels and constructed with collapsible partial
side walls that fold for towing by another vehicle and unfold at the campsite to provide temporary
living quarters for recreational, camping, or travel use. (3) DEALER. Any person, firm, corporation,
or business engaged in the business of selling recreational vehicles to the general public
and that maintains a permanent business establishment including a service and repair facility
which offers mechanical services for the recreational...
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8-19-5
Section 8-19-5 Unlawful trade practices. The following deceptive acts or practices in
the conduct of any trade or commerce are hereby declared to be unlawful: (1) Passing off goods
or services as those of another, provided that this section shall not prohibit the
private labeling of goods or services. (2) Causing confusion or misunderstanding as to the
source, sponsorship, approval, or certification of goods or services. (3) Causing confusion
or misunderstanding as to the affiliation, connection, or association with, or certification
by another, provided that this section shall not prohibit the private labeling of goods
or services. (4) Using deceptive representations or designations of geographic origin in connection
with goods or services. (5) Representing that goods or services have sponsorship, approval,
characteristics, ingredients, uses, benefits, or qualities that they do not have or that a
person has sponsorship, approval, status, affiliation, or connection that he or she does...

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