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. Dealers are now required to check for open recalls before retail sales and must inform potential buyers of any existing recalls, providing printed information. The Act prohibits the sale of vehicles under stop-sale or do-not-drive notices and establishes a presumption of no knowledge of recalls for dealers who verify the National Highway Traffic Safety Administration's website. Additionally, franchisors and dealers must provide a list of vehicles with open recalls to the New Jersey Motor Vehicle Commission, which will notify registered owners about necessary actions.

The bill also enhances protections for motor vehicle franchisees against unreasonable demands from franchisors, including prohibiting excessive advertising purchases and restricting the demand for sensitive customer information. It limits financial requirements imposed by franchisors and ensures fair compensation for labor and parts under warranty, with specific guidelines for calculating compensation. Notably, the bill protects franchisees from penalties related to vehicle recalls and ensures that compensation is not reduced due to reimbursement claims. Overall, the legislation aims to improve consumer safety and promote fair practices within the motor vehicle franchise system.

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