Title 56, Title 56: TRADE NAMES, TRADE-MARKS AND UNFAIR TRADE PRACTICES

56:10-13. Definitions 1. For the purposes of this act: "Motor vehicle franchisor" means a franchisor engaged in the business of manufacturing or assembling new motor vehicles, who will, under normal business conditions during the year, manufacture or assemble at least 10 new moto…

56:10-13.1. Violations concerning relocations 2. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.) for any motor vehicle franchisor, directly or indirectly, through any officer, agent or employee, to prohibit or restrict the relocation …

56:10-13.2 Repurchase of certain vehicles and equipment on termination, cancellation or nonrenewal. 3. Within 90 days of the termination, cancellation or nonrenewal of a motor vehicle franchise as provided for in section 5 of P.L.1971, c.356 (C.56:10-5), or the termination, cance…

56:10-13.3 Violations related to termination, cancellation or nonrenewal. 4. a. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.) for any motor vehicle franchisor, directly or indirectly, through any officer, agent or employee, to termi…

56:10-13.4. Discontinuation of a series or line, effective termination 5. For the purposes of sections 3 and 4 of this 1991 amendatory and supplementary act, and section 5 of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-5), the termination, cancellation or discontinuat…

56:10-13.5. Interest on overdue payments 6. If a motor vehicle franchisor fails to make any payment required by this 1991 amendatory and supplementary act within the time specified for payment, interest shall be added to that payment at the rate of 12% per annum from the date pay…

56:10-13.6. Violations by franchisor 5. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.), for a motor vehicle franchisor to exercise a right of first refusal or other right to acquire a motor vehicle franchise from a motor vehicle fran…

56:10-13.7. Exceptions to violations by franchisor, "acquiring transferee" defined 6. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.), for a motor vehicle franchisor to exercise a right of first refusal or other right to acquire a mot…

56:10-14. Indemnification and holding harmless franchisees by franchisors for claims and damages due third parties All motor vehicle franchisors shall indemnify and hold harmless their motor vehicle franchisees from any and all claims, losses, damages, and expenses, including att…

56:10-15 Reimbursement for services or parts under warranty or law. 3. If any motor vehicle franchise shall require or permit motor vehicle franchisees to perform labor services or provide parts in satisfaction of a repair service offered and reimbursed by the motor vehicle franc…

56:10-16 Definitions. 1. a. "Committee" means the Motor Vehicle Franchise Committee established in section 2 of this act; b. "Franchise" means a written arrangement for a definite or indefinite period in which a motor vehicle franchisor grants a right or license to use a trade na…

56:10-17. Motor vehicle franchise committee There is established in the Executive Branch of the State Government a committee which shall be known as the Motor Vehicle Franchise Committee. The committee shall consist of the Director of the Division of Motor Vehicles, the Commissio…

56:10-18 Conditions for franchise. 3. A motor vehicle franchisor may grant, relocate, reopen or reactivate a franchise or establish, relocate, reopen or reactivate a business, for the purpose of doing business on the retail level, only if the franchise or business will not be inj…

56:10-19 Notice to existing franchisee, protest, appeal. 4. A motor vehicle franchisor shall give its existing franchisees in the same line make within 20 miles of the proposed location for the proposed franchise or business as calculated using the methodology set forth in subsec…

56:10-2 Legislative findings. 2. The Legislature finds and declares that distribution and sales through franchise arrangements in the State of New Jersey vitally affects the general economy of the State, the public interest and the public welfare. It is therefore necessary in the…

56:10-20 Rights of franchisor. 5. The provisions of sections 3 and 4 of P.L.1982, c.156 (C.56:10-18 and 56:10-19) notwithstanding, a motor vehicle franchisor may: a. Permit an existing franchisee to relocate his franchise within two miles of the franchisee's existing franchise lo…

56:10-21 Hearing on protest. 6. The hearing referred to in section 4 of P.L.1982, c.156 (C.56:10-19) shall be conducted as a contested case in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c. 410 (C.52:14B-1 et seq.) and P.L.1978, c.67 (C.52:14F-…

56:10-22. Motion for determination that final determination will favor franchisee; prohibition of action by franchisor When a protest has been filed, as provided for in this act, the franchisee may move for a determination by the committee that a prima facie case has been made th…

56:10-23 Factors for consideration if proposed franchise will harm public interest. 8. a. The grant, reopening or reactivation of a franchise or establishment, or the reopening or reactivation of a business shall be deemed injurious to existing franchisees or to the public intere…

56:10-24. Parties responsible for own costs In any administrative proceeding under this act, each party shall be responsible for his own litigation costs and attorney fees. The committee shall assess and equally apportion among the parties to the hearing, and shall transfer to th…

56:10-25. Rules and regulations The committee may promulgate such rules and regulations as are necessary to implement the provisions of this act. L.1982, c. 156, s. 10, eff. Oct. 27, 1982.

56:10-26 Definitions. 1. As used in this act: "Consumer" means the purchaser, other than for resale, of a motor vehicle. "Franchise" means a written arrangement for a definite or indefinite period in which a motor vehicle franchisor grants a right or license to use a trade name, …

56:10-27 Sales through franchises only. 2. a. Except as provided pursuant to section 6 of P.L.2015, c.24 (C.56:10-27.1), it shall be a violation of this act for any motor vehicle franchisor, directly or indirectly, through any officer, agent, employee, broker, or any shareholder …

56:10-27.1 Sale of zero emission vehicle. 6. Notwithstanding the provisions of any law, rule or regulation to the contrary, a motor vehicle franchisor licensed pursuant to R.S.39:10-19 on or prior to January 1, 2014 and exclusively manufacturing zero emission vehicles may buy fro…

56:10-28 Prohibition of ownership by franchisor. 3. Except as provided pursuant to section 6 of P.L.2015, c.24 (C.56:10-27.1), it shall be a violation of this act for a motor vehicle franchisor, directly or indirectly, through any officer, agent, employee, broker or any sharehold…

56:10-29. Action by franchisee A motor vehicle franchisee may bring an action against the motor vehicle franchisor which has granted its franchise, or any other person, in the Superior Court to enjoin any violation of this act and to recover, where appropriate, any damages sustai…

56:10-3 Definitions. 3. As used in this act: a. "Franchise" means a written arrangement for a definite or indefinite period, in which a person grants to another person a license to use a trade name, trade mark, service mark, or related characteristics, and in which there is a com…

56:10-30 Actions, alternate dispute resolution proceedings relative to franchise termination. 12. a. Upon timely institution of an action or alternate dispute resolution proceeding to enjoin the termination of a motor vehicle franchise on the ground that such termination would be…

56:10-31 Request for additional information by franchisor. 13. If a motor vehicle franchisor desires information about a transaction or a proposed transferee, in addition to that provided with the notice of intent pursuant to section 6 of P.L.1971, c.356 (C.56:10-6), the motor ve…

56:10-32 Short title. 1. Sections 1 through 5 of P.L.2025, c.140 (C.56:10-32 to 56:10-35 and C.39:3-4g) shall be known and may be cited as the “Motor Vehicle Open Recall Notice and Fair Compensation Act.” L.2025, c.140, s.1.

56:10-33 Definitions. 2. As used in sections 2 through 5 of P.L.2025, c.140 (C.56:10-33 to 56:10-35 and C.39:3-4g): “Chief administrator” means the Chief Administrator of the New Jersey Motor Vehicle Commission. “Commission” means the New Jersey Motor Vehicle Commission establish…

56:10-34 Standing, motor vehicle franchisees, corporation, association. 3. Any corporation or association that is primarily owned by or comprised of motor vehicle franchisees, which corporation or association primarily represents the interests of motor vehicle franchisees, shall …

56:10-35 Recall service, repair, insufficient part or parts necessary, compensation. 4. a. If a part or the parts necessary to perform a recall service are not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a motor vehicle fran…

56:10-4. Application of act 4. This act applies only: a. to a franchise (1) the performance of which contemplates or requires the franchisee to establish or maintain a place of business within the State of New Jersey, (2) where gross sales of products or services between the fran…

56:10-5. Termination of franchise; notice; grounds It shall be a violation of this act for any franchisor directly or indirectly through any officer, agent, or employee to terminate, cancel, or fail to renew a franchise without having first given written notice setting forth all …

56:10-6. Transfer of franchise; notice; approval; agreement of compliance It shall be a violation of this act for any franchisee to transfer, assign or sell a franchise or interest therein to another person unless the franchisee shall first notify the franchisor of such intention…

56:10-6.1 Violations of the "Franchise Practices Act." 1. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.): a. For a franchisor to transfer, assign, or sell an interest in one or more franchise premises which a franchisee who purchases…

56:10-6.2 Inapplicability of act to certain distributors. 2. The provisions of P.L.2009, c.63 (C.56:10-6.1 et seq.) pertaining to franchisors shall not apply to any distributor which owns or otherwise controls through lease, fewer than 40 premises. For purposes of this section, "…

56:10-6.3 Inapplicability of act relative to family members. 3. The provisions of P.L.2009, c.63 (C.56:10-6.1 et seq.) shall not apply to the sale, transfer, or assignment of one or more franchise premises from one family member to another family member. For the purposes of this …

56:10-6.4 Severability. 4. If any provision of P.L.2009, c.63 (C.56:10-6.1 et seq.) or the application of any such provision to any person or circumstance should be held invalid by a court of competent jurisdiction, the remainder of P.L.2009, c.63 (C.56:10-6.1 et seq.) and the ap…

56:10-7 Prohibited practices. 7. It shall be a violation of this act for any franchisor, directly or indirectly, through any officer, agent or employee, to engage in any of the following practices: a. To require a franchisee at time of entering into a franchise arrangement to ass…

56:10-7.1. Prohibition of purchase of alternate motor fuel by franchisee; violation a. It shall be a violation of the act to which this act is a supplement for any franchisor, directly or indirectly, through any officer, agent, or employee, to prohibit any franchisee engaged in t…

56:10-7.2. Findings, declarations 1. The Legislature hereby finds and declares the following: a. Notwithstanding the enactment of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.), and other legislation dealing with the franchisor-franchisee relationship, includi…

56:10-7.3 Prohibited conditions, terms of franchise. 2. a. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.) for a motor vehicle franchisor to require a motor vehicle franchisee to agree to a term or condition in a franchise, or in any …

56:10-7.4 Additional practices prohibited. 5. It shall be a violation of P.L.1971, c.356 (C.56:10-1 et seq.) for any motor vehicle franchisor, directly or indirectly, through any officer, agent or employee, to engage in any of the following practices: a. To impose unreasonable st…

56:10-8. Application of act to prior grants of franchises This act shall not apply to a franchise granted prior to the effective date of this act, provided, however, that a renewal of a franchise or an amendment to an existing franchise shall not be excluded from the application …