The Motor Vehicle Open Recall Notice and Fair Compensation Act introduces new regulations for motor vehicle franchisees and dealers in New Jersey, focusing on the sale of used vehicles with open recalls. Under this Act, franchisees and dealers are required to check for open recalls on vehicles through the National Highway Traffic Safety Administration's website before conducting retail sales. If an open recall is identified, they must inform the prospective buyer and provide printed recall information. The Act also prohibits the sale of vehicles subject to stop-sale or do-not-drive notices and establishes a presumption of no knowledge of recalls for dealers who comply with these requirements. Additionally, the Act mandates that franchisors and dealers submit lists of vehicles with open recalls to the New Jersey Motor Vehicle Commission for owner notification.

The legislation further enhances protections for motor vehicle franchisees by ensuring fair compensation for warranty-related labor and parts, prohibiting unfair practices by franchisors, and removing a previous 5% cap on financial condition requirements. It also introduces protections against retaliatory actions for franchisees who disclose safety-related information and clarifies that franchisors cannot impose conditions that relieve them of liability under existing laws. The bill emphasizes fair compensation practices, requiring that payments for labor services rendered by franchisees be no less than what retail customers pay, and establishes guidelines for calculating labor rates and parts markup. Overall, the Act aims to improve consumer safety regarding vehicle recalls while ensuring equitable treatment and compensation for franchisees in the motor vehicle industry.

Statutes affected:
Introduced: 56:10-7.2, 56:10-7.4, 56:10-15