The bill amends Chapter 31-5.1 of the General Laws, which regulates the relationships between motor vehicle manufacturers, distributors, and dealers. It introduces key definitions such as "common entity," clarifying the ownership structure related to manufacturers, distributors, and dealers. The bill expands the definition of "new motor vehicle" to include vehicles that have never been the subject of a completed sale, except between new motor vehicle dealers or between a manufacturer and a dealer of the same franchise. It also includes dealers who engage exclusively in the repair of motor vehicles under a manufacturer's warranty as part of selling activities.

The bill establishes that any person engaging in purposeful contacts within the state related to motor vehicle business is subject to the chapter's jurisdiction. It outlines the responsibilities of manufacturers and distributors, particularly regarding franchise agreements, and prohibits coercive practices against dealers.

Additionally, the bill enforces new provisions requiring manufacturers and distributors to provide written notification for franchise terminations, cancellations, or non-renewals, along with justifications based on good cause. It mandates fair compensation for dealers upon termination, including reimbursement for unsold inventory and continued service for a minimum of five years after a product line discontinuation. The bill also prohibits manufacturers licensed after January 1, 2020, from selling directly to the public, reinforcing the dealership model. Overall, the amendments aim to create a more equitable and transparent framework for motor vehicle dealerships, ensuring fair treatment and opportunities for success in their business operations.