The Motor Vehicle Open Recall Notice and Fair Compensation Act aims to improve consumer safety and accountability in the sale of used vehicles with open recalls. The bill requires motor vehicle franchisees and dealers to check for open recalls before selling used vehicles and to inform potential buyers if any recalls are identified, providing printed recall information. It also prohibits dealers from selling vehicles under a stop-sale or do-not-drive notice and establishes a presumption of no knowledge of recalls if the dealer has checked the National Highway Traffic Safety Administration's (NHTSA) website prior to the sale. Additionally, the bill mandates that franchisors submit lists of vehicles with open recalls to the New Jersey Motor Vehicle Commission, which will notify registered owners.

Moreover, the legislation enhances protections for franchisees against unreasonable demands from franchisors, including prohibiting excessive advertising purchases, unreasonable display requirements, and the disclosure of customer information without consent. It ensures fair compensation for labor and parts related to warranties and prohibits franchisors from penalizing franchisees for selling vehicles to customers who may export them, unless the franchisee had prior knowledge. The bill also introduces guidelines for calculating labor rates and parts markup, ensuring that franchisees are not burdened by complex methodologies. Overall, the act seeks to create a more equitable relationship between motor vehicle franchisors and franchisees, promoting fair business practices and consumer safety within the industry.

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