The Motor Vehicle Open Recall Notice and Fair Compensation Act is designed to improve consumer safety and accountability in the sale of used vehicles with open recalls. The bill mandates that motor vehicle franchisees and dealers must check for open recalls before selling used vehicles and inform prospective buyers if any recalls are identified. It prohibits the sale of 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 website. Additionally, the bill requires dealers to submit lists of vehicles with open recalls to the New Jersey Motor Vehicle Commission, which will notify registered owners.

The legislation also aims to enhance the rights and compensation of motor vehicle franchisees, ensuring they are fairly compensated for labor and parts related to recalls and warranties. It prohibits franchisors from imposing unreasonable demands on franchisees, such as excessive advertising costs or penalties for business operations. The bill establishes that compensation for warranty-related services must be fair and timely, and it protects franchisees from retaliation for disclosing safety-related information. Overall, the act seeks to create a more equitable relationship between franchisors and franchisees, promoting fair business practices and consumer safety in New Jersey.

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