The bill amends several sections of Chapter 31-5.1 of the General Laws, which regulates the relationships and practices among motor vehicle manufacturers, distributors, and dealers. It introduces key definitions, such as "common entity," and revises the definition of "new motor vehicle" to clarify that it must not have been the subject of a completed, successful, or conditional sale outside of dealer-to-dealer or manufacturer-to-dealer transactions. Additionally, the bill allows motor vehicle dealers exclusively manufacturing zero-emission vehicles to buy from and sell, offer to sell, or deal to consumers without a retail facility, provided they meet certain conditions.

The bill establishes prohibitions against coercive practices by manufacturers and distributors, ensuring that they cannot engage in arbitrary or bad faith actions against dealers. It mandates adherence to franchise agreements and emphasizes fair treatment of dealers by requiring manufacturers to provide equal terms and justifiable reasons for any franchise terminations, cancellations, or nonrenewals. Written notifications with specific timelines are required, and the burden of proof is placed on manufacturers to demonstrate compliance with these requirements.

Furthermore, the legislation ensures fair compensation for dealers upon termination, including reimbursement for unsold inventory and continued service support for a minimum of two years after a product line is discontinued. By reinforcing the role of dealers and prohibiting unfair practices, the bill aims to create a more equitable environment within the motor vehicle industry.