NRS 482.3638
Unfair practices: Release from liability

  • limitations on settlement of controversies
  • unlawful terms or conditions of franchise agreements
  • price increases
  • participation in ownership
  • unlawful acts against franchise
  • preventing dealer from selling or servicing another line or make of new vehicles.

It is an unfair act or practice for any manufacturer, distributor or factory branch, directly or through any representative, to:

1.

Require a dealer to agree to a release, assignment, novation, waiver or estoppel which purports to relieve any person from liability imposed by this chapter, or require any controversy between a dealer and a manufacturer, distributor or representative to be referred to any person or agency except as set forth in this chapter if that referral would be binding on the dealer, except that this section does not prevent the parties from mutually agreeing to arbitration pursuant to law.

2.

Require a dealer to agree to the jurisdiction, venue or tribunal in which a controversy arising under the provisions of the franchise agreement may or may not be submitted for resolution, or prohibit a dealer from bringing an action in any forum allowed by Nevada law.

3.

Require a dealer to agree to a term or condition of a franchise agreement which violates or waives any provision of NRS 482.36311 to 482.36425, inclusive. A waiver of any provision of NRS 482.36311 to 482.36425, inclusive, is void and unenforceable.

4.

Require a dealer to waive a trial by jury in actions involving the manufacturer, distributor or factory branch.

5.

Increase prices of new vehicles which the dealer had ordered for private retail consumers before the dealer receives the written official notification of a price increase. A sales contract signed by a retail consumer constitutes evidence of each order. Price changes applicable to new models or series of vehicles at the time of the introduction of the new models or series shall not be deemed a price increase. Price changes caused by:

(a)

The addition to a vehicle of equipment formerly optional as standard or required equipment pursuant to state or federal law;

(b)

Revaluation of the United States dollar in the case of foreign-made vehicles; or

(c)

Transportation cost increases,
Ê are not subject to this subsection.

6.

Deny the principal owner the opportunity to designate his or her spouse, a member of his or her family, a qualified manager, or a trust or other artificial person controlled by any of them as entitled to participate in the ownership of:

(a)

The franchised dealership;

(b)

A successor franchised dealership for 2 years or a longer reasonable time after the incapacity of the principal owner; or

(c)

A successor franchised dealership after the death of the principal in accordance with NRS 482.36396 to 482.36414, inclusive.

7.

Modify unilaterally, replace, enter into, relocate, terminate or refuse to renew a franchise in violation of law.

8.

Terminate or refuse to approve a transfer of a franchise for a dealership, or honor the right of succession set forth in a franchise agreement or refuse to approve the transfer of a controlling interest in a dealership because the dealer has, before October 1, 1997, established an additional franchise to sell or service another line or make of new vehicles in the same facility as the existing dealership.

9.

Prevent a dealer from establishing, on or after October 1, 1997, an additional franchise to sell or service another line or make of new vehicles in the same facility as the existing dealership if the dealer:

(a)

Submits a written request for approval of the additional franchise to the manufacturer, distributor or factory branch of the existing dealership;

(b)

Complies with the reasonable requirements for approval set forth in the franchise of the existing dealership; and

(c)

Obtains the approval of the manufacturer, distributor or factory branch of the existing dealership.
Ê The manufacturer, distributor or factory branch shall notify the dealer in writing of its decision to approve or deny the request within 90 days after receipt of the request. The manufacturer, distributor or factory branch shall not unreasonably withhold its approval. If the request is denied, the material reasons for the denial must be stated. Failure to approve or deny the request, in writing, within 90 days has the effect of approval.

Source: Section 482.3638 — Unfair practices: Release from liability; limitations on settlement of controversies; unlawful terms or conditions of franchise agreements; price increases; participation in ownership; unlawful acts against franchise; preventing dealer from selling or servicing another line or make of new vehicles., https://www.­leg.­state.­nv.­us/NRS/NRS-482.­html#NRS482Sec3638.

482.3632
“Factory branch” defined.
482.3634
“Relevant market area” defined.
482.3638
Unfair practices: Release from liability
482.36311
Definitions.
482.36318
“Distributor” defined.
482.36319
“Distributor branch” defined.
482.36345
“Representative” defined.
482.36348
“Vehicle” defined.
482.36349
Certain manufacturers not subject to provisions governing franchises for sales of motor vehicles.
482.36352
Termination or discontinuation of franchise: Notice
482.36354
Modification or replacement of franchise: Notice
482.36355
Considerations for determining good cause for termination, discontinuation, modification or replacement of franchise.
482.36356
Additional criteria for determining existence of good cause for termination, discontinuation, modification or replacement of franchise or for establishing additional dealership or relocating existing dealership.
482.36357
Establishment or relocation of dealership in marketing area of dealer in same line and make of vehicles: Notice
482.36358
Considerations for determining good cause for establishing or relocating dealership in marketing area of dealer in same line and make of vehicles.
482.36361
Written protests: Notice
482.36363
Hearings: Burden of proof
482.36366
Hearings: Fees for witness
482.36368
Decision of Director: Judicial review
482.36371
Unfair practices: Change in capital structure, executive management, ownership or control
482.36385
Unfair practices: Competition by manufacturer, distributor or branch of factory
482.36386
Unfair practices: Selling or offering to sell new vehicle, parts or accessories at lower actual price than offered or charged another dealer
482.36387
Unfair practices: Ownership or operation of facility for repair or maintenance of vehicles by manufacturer or distributor or certain persons or entities under common control therewith
482.36388
Unfair practices: Putting into effect unfair, unreasonable or inequitable method for allocation, scheduling or delivery of new vehicles, parts or accessories
482.36389
Unfair practices: Requiring dealer to disclose information concerning customer to manufacturer or third party
482.36391
Unfair practices: Inducing dealer by coercion to order or accept vehicle, parts, accessories or other commodities.
482.36395
Unfair practices: Encouraging dealer to sell or lease vehicles through deceptive practices
482.36396
Death of dealer: Termination of franchise prohibited if dealer designates successor in interest
482.36397
Death of dealer: Notice of assumption and commencement of operation of franchise by designated successor
482.36398
Death of dealer: Operation of business and accounting to heirs or estate by manufacturer or distributor pending assumption by designated successor
482.36399
Assumption of provisions of franchise agreement by successor required.
482.36412
Franchise assumable by successor same as existed at death of dealer.
482.36413
Termination of franchise upon divorce prohibited
482.36414
License as dealer required for assumption of operation of franchise.
482.36419
Exercise of right of first refusal by manufacturer or distributor if transfer of all or substantially all assets of dealership is proposed: Requirements
482.36423
Action for injunctive relief or civil damages
482.36425
Civil penalty
482.363521
Termination or discontinuation of franchise: Compensation of dealer.
482.363523
Termination or discontinuation of franchise: Duties of dealer.
482.363571
Manufacturer prohibited from modifying franchise of or taking adverse action against dealer for selling vehicle which is later exported outside of United States
482.363573
Substantial alteration of existing facility of dealer: Restrictions on manufacturer
482.363574
Compensation to dealer for certain used vehicles subject to recall or other orders
482.363575
Director to adopt regulations for conduct of discovery preliminary to hearings required for termination, discontinuation, modification or replacement of franchises or for establishment or relocation of dealership in marketing area of another dealer in same line and make of vehicles.
Last Updated

Feb. 5, 2021

§ 482.3638’s source at nv​.us