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In its electronic newsletter, the Recreation Vehicle Industry Association (RVIA) is reminding RV manufacturers of a new law affecting the sale of RVs in California that went into effect Jan. 1.
The law, which was drafted and supported by the California RV Dealers Association, makes it unlawful for a recreational vehicle manufacturer, manufacturer branch, distributor, or distributor branch to sell a new recreational vehicle in California to or through a recreational vehicle dealer without having first entered into a written recreational vehicle franchise agreement with that recreational vehicle dealer.
The written agreement must comply with the requirements of the California franchise law and must be signed by both parties. Under California law, the term ‘recreational vehicle’ includes motorhomes, travel trailers and folding camping trailers.
This new law requires the agreement between the manufacturer and the recreational vehicle dealer to include, but not be limited to, provisions regarding dealership transfer, dealership termination, sales territory, and reimbursement for costs incurred by the dealer for work related to the manufacturer’s warranty for each line-make of recreational vehicle covered by the agreement as required in the California RV franchise law.
Pursuant to RVIA Board of Directors policy, RVIA does not take a position on state legislation requiring written dealer agreements between manufacturers and dealers, although RVIA did provide technical support in amending the new law to limit its scope and clarify its intent. This new law is a refinement of the law that went into effect January 1, 2008, that many California RV dealers found inadequate.