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New Hampshire law carefully regulates the relationship between automotive, equipment, and powersports manufacturers and dealers under the Dealer Bill of Rights (R.S.A. 357-C). Importantly, the Dealer Bill of Rights prohibits manufacturers from requiring dealers to enter into separate dealer agreements to obtain a model within the same line make.
Specifically, the Dealer Bill of Rights provides that an OEM cannot:
Fail or refuse to sell or offer to sell to all motor vehicle franchisees of a line make, all models manufactured for that line make, or require[e] a dealer to pay any extra fee, [or] execut[e] a separate franchise agreement…”
A “line make” refers to the OEM’s brand of vehicles, encompassing all models and variants offered under that brand. The Dealer Bill of Rights defines a “line make” as motor vehicles, equipment, and/or powersports equipment that are “offered for sale, lease, or distribution under a common name, trademark, service mark or brand name of the franchisor or manufacturer of the motor vehicle.” In other words, a line make includes all cars, trucks, SUVs, and specialty vehicles under the brand name.
Under New Hampshire law, an OEM must allow a current franchised dealer to sell all models within the franchised line make. The OEM cannot require a dealer to enter into a separate franchise agreement for each line make, nor can it require a dealer to pay an extra fee to be eligible to sell a model within the franchised line make. To note, there are other prohibitions under the Dealer Bill of Rights that are not discussed here, such as an OEM cannot require a dealer to purchase unreasonable advertising displays or other materials before it can sell a model within a line make.
If you find yourself in a position where your OEM refuses to sell you a model within your franchised line make, just remember: this is prohibited under New Hampshire law, so contact your legal counsel immediately.
