HR 75
112th CONGRESS
1st Session
H. R. 75
To prohibit certain restraints of competition adversely affecting
automobile dealers.
IN THE HOUSE OF REPRESENTATIVES
January 5, 2011
Ms. JACKSON LEE of Texas introduced the following bill; which was referred
to the Committee on Energy and Commerce
A BILL
To prohibit certain restraints of competition adversely affecting
automobile dealers.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Automobile Dealers Fair Competition Act of 2011'.
SEC. 2. PROHIBITION AGAINST CERTAIN RESTRAINTS OF TRADE.
(a) Prohibition- It shall be unlawful for any new automobile manufacturer
(as defined in subsection (c)) engaged in commerce, in the course of such
commerce, directly or indirectly, to unreasonably discriminate against, or
unreasonably deny a franchise to, an automobile dealer (as defined in subsection
(d)) in any case in which the automobile dealer applies to such manufacturer,
within 60 days after the date of the enactment of this Act, for the retention
of its franchise and presents adequate evidence that it is a going concern.
(b) Expedited Actions To Protect Franchise Agreements- In order to protect
the economic rights of automobile dealers, if at the end of 90 days following
the date of the enactment of this Act, if a new automobile manufacturer has
not entered into an agreement with an automobile dealer to restore its franchise,
the automobile dealer, at the dealer's option, shall be able to seek enforcement
of its rights under subsection (a) by filing an action therefor in a United
Stated district court under a procedure in which a master appointed by the
court shall hear the matter and make a recommendation to the court within
90 days after the filing of the action. The court shall adopt the master's
recommendation if in accord with the law and facts. The provisions of this
subsection shall not be in derogation of any rights an automobile dealer otherwise
has under this section.
(c) Definition of `New Automobile Manufacturer'- As used in subsection (a),
the term `new automobile manufacturer' means an automobile manufacturing company
established in 2009 that is the successor to another automobile manufacturing
company and acquires in such year the assets of the predecessor automobile
manufacturing company in a transaction governed by section 363 of title 11
of the United States Code.
(d) Definition of `Automobile Dealer'- As used in subsection (a), the term
`automobile dealer' means any automobile dealer in the United States that,
on January 1, 2009, held a franchise granted by an automobile manufacturing
company that was the predecessor company to a new automobile manufacturer
to sell that company's automobiles, but that, on the date of the enactment
of this Act, has not entered an agreement with the new automobile manufacturer
that is a successor to that company to continue serving as a franchisee.
END
