The Motor Vehicle Open Recall Notice and Fair Compensation Act introduces new regulations for motor vehicle franchisees and dealers in New Jersey, specifically concerning the sale of used vehicles with open recalls. The bill mandates that franchisees and dealers must check the National Highway Traffic Safety Administration's website for any open recalls before selling a used vehicle. If an open recall is identified, they are required to inform the prospective buyer and provide printed recall information. Additionally, franchisors and dealers must submit a list of vehicles with open recalls to the Chief Administrator of the New Jersey Motor Vehicle Commission, which will notify registered owners about necessary repairs.

Moreover, the bill enhances the rights of motor vehicle franchisees by addressing the power imbalance with franchisors. It establishes new compensation requirements for franchisees related to compliance with recall notices and prohibits franchisors from imposing unreasonable demands, such as requiring excessive advertising purchases or sensitive customer information. The legislation also ensures fair compensation for labor and parts provided by franchisees under warranty, mandates timely reimbursements, and prohibits franchisors from unilaterally reducing compensation for warranty or recall services. Overall, the act aims to create a more equitable relationship between franchisors and franchisees while enhancing consumer safety and ensuring fair compensation practices.

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