The Motor Vehicle Open Recall Notice and Fair Compensation Act establishes new regulations for motor vehicle franchisees and dealers in New Jersey, specifically addressing the sale of used vehicles with open recalls. Under this bill, franchisees and dealers are required to check for open recalls on vehicles through the National Highway Traffic Safety Administration's website before sale. If any open recalls are identified, they must inform potential buyers and provide printed recall information. Additionally, the bill mandates that franchisors 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.

The legislation also aims to protect franchisees from unfair practices by franchisors, prohibiting unreasonable demands such as requiring franchisees to purchase excessive advertising materials or disclose customer information without consent. It introduces new protections against retaliatory actions for franchisees who disclose safety-related information and ensures fair compensation for warranty services based on market rates. Significant amendments include the removal of a previous 5% cap on financial condition requirements, replaced with a stipulation that any increase must be justified. Overall, the bill enhances consumer safety regarding vehicle recalls while ensuring fair treatment and compensation practices for franchisees in the motor vehicle marketplace.

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