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Michigan Legislature
Michigan Compiled Laws Complete Through PA 48 of 2019
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Act 118 of 1981
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MOTOR VEHICLE FRANCHISE ACT

Act 118 of 1981

AN ACT to regulate motor vehicle manufacturers, distributors, wholesalers, dealers, and their representatives; to regulate dealings between manufacturers and distributors or wholesalers and their dealers; to regulate dealings between manufacturers, distributors, wholesalers, dealers, and consumers; to prohibit unfair practices; to provide remedies and penalties; and to repeal certain acts and parts of acts.


History: 1981, Act 118, Imd. Eff. July 19, 1981


© 2017 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
Section 445.1561SectionShort title; Meanings of words and phrases.
Section 445.1562SectionDefinitions; C, D.
Section 445.1563SectionDefinitions; D to F.
Section 445.1564SectionDefinitions; G to M.
Section 445.1565SectionDefinitions; N to P.
Section 445.1566SectionDefinitions; R to U.
Section 445.1567SectionCancellation, termination, nonrenewal, or discontinuance of dealer agreement; conditions; existence of good cause; failure to comply with agreement; notification; evidence in writing.
Section 445.1568SectionActs not constituting good cause for termination, cancellation, nonrenewal, or discontinuance of dealer agreement.
Section 445.1569SectionBurden of proof.
Section 445.1570SectionNotice of termination, cancellation, nonrenewal, or discontinuance of dealer agreement.
Section 445.1571SectionCompensation of dealer generally.
Section 445.1572SectionPayment of compensation; time; determination of amount; interest; definitions.
Section 445.1573SectionRequiring dealer to perform certain duties prohibited; definitions.
Section 445.1574SectionProhibited conduct by manufacturer.
Section 445.1574aSectionProperty use agreement not required as condition; exception; termination of agreement between manufacturer and new motor vehicle dealer; effect of inconsistent provision; "property use agreement" defined.
Section 445.1574bSectionRight of first refusal; conditions; liability; definitions.
Section 445.1575SectionSuccession to dealership by designated family member of deceased or incapacitated dealer or executive manager of dealership; conditions; refusal to honor existing dealer agreement for good cause; personal and financial information; notice of refusal to approve succession; contents; service; designation of successor by written instrument.
Section 445.1576SectionEstablishment or relocation of additional dealer; notice; declaratory judgment action; exception; judicial determination of good cause.
Section 445.1577SectionDealer's obligations for preparation, delivery, and warranty service; written specifications; compensating dealer for required warranty service; schedule of compensation; prohibited conduct; claims for labor and parts; payment; approval or disapproval; charge back for false or fraudulent claims; records of warranty repairs; compensation and claims for promotion events, programs, or activities; approval or disapproval of claims; meeting; disclosure of proprietary or confidential information; audit.
Section 445.1577aSectionReasonable compensation for parts reimbursement and labor rates; factors.
Section 445.1577bSectionCompensation to perform recall repairs; conditions; application of section; prohibited conduct; stop-sale order; exclusive remedy.
Section 445.1578SectionLiability for damage to new motor vehicles; rejection of new motor vehicle by dealer; credit.
Section 445.1579SectionIndemnification of dealer against certain judgments; payment of costs, fees, and judgments; notice.
Section 445.1580SectionAction for damages or declaratory judgment; liability.
Section 445.1581SectionInjunctive relief.
Section 445.1582SectionAct inapplicable to dealer outside Michigan.
Section 445.1582aSectionExisting agreements and agreements entered into or renewed after effective date.
Section 445.1583SectionRepeal of MCL 445.521 to 445.534.
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