SENATE BILL No. 446
DIGEST OF INTRODUCED BILL
Citations Affected: IC 9-23-3-26.
Synopsis: Manufacturer or distributor unfair practice. Provides that an
automotive manufacturer or distributor commits an unfair practice
when the manufacturer or dealer takes an adverse action against an
automotive dealer because the dealer sold or leased a vehicle to a
customer who exported the vehicle to a foreign country or who resold
the vehicle, with certain exceptions.
Effective: July 1, 2009.
January 14, 2009, read first time and referred to Committee on Corrections, Criminal, and
First Regular Session 116th General Assembly (2009)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2008 Regular Session of the General Assembly.
SENATE BILL No. 446
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 9-23-3-26; (09)IN0446.1.1. -->
SECTION 1. IC 9-23-3-26 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2009]: Sec. 26. (a) Notwithstanding the terms of a franchise
agreement, a manufacturer or distributor commits an unfair
practice by means of a program, policy, or procedure, when the
manufacturer or distributor has:
(1) refused to allocate, sell, or deliver motor vehicles;
(2) charged back to the dealer or withheld payments or other
things of value from the dealer for which the dealer is
otherwise eligible under a sales promotion, program, or
(3) prevented a dealer from participating in a promotion,
program, or contest; or
(4) taken or threatened to take any adverse action against a
dealer, including but not limited to charge backs, reducing
vehicle allocations, or terminating or threatening to terminate
because the dealer sold or leased a vehicle to a customer who
exported the vehicle to a foreign country or who resold the vehicle,
unless the manufacturer or distributor definitively proves that the
dealer had actual knowledge that the customer intended to export
or resell the vehicle.
(b) There is an irrebuttable presumption that the dealer had no
actual knowledge that the customer intended to export or resell the
(1) the vehicle is titled or registered in any state in the United
(2) proper sales tax has been collected by a taxing authority;
(3) both subdivisions (1) and (2).
However, the irrebuttable presumption also applies if the dealer
has obtained the proper sales tax exemption documentation and
maintains the exemption on file or the transaction is exempt from
vehicle registration requirements under IC 9-18-2, or both.