FOR IMMEDIATE RELEASE
March 28, 2011
Contact:  Erin Marsicano
(717) 787-3817
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Senate Approves Waugh's Fair Dealership Legislation 

HARRISBURG – Today the Senate passed Senator Mike Waugh's Senate Bill 1169, which amends the Pennsylvania Fair Dealership Law, by a vote of 37-11. 

Waugh's legislation aims to improve the relationship between local agricultural equipment dealers and both manufacturers and suppliers.  The primary goal of the bill is to prevent manufacturers from restricting a local dealer's ability to offer equipment that its customers want and need. 

"I introduced this bill at the request of local farm equipment dealers who have raised concerns that constraints from manufacturers have resulted in diminished viability and profitability," said Waugh.  "They’re being told what they can and cannot sell, and it's impacting their business and local farmers significantly."

Specifically, Waugh's legislation:

• Prevents manufacturers from unduly using their influence to prevent a local dealer from purchasing the equipment of a competitive manufacturer or supplier;
• Prevents manufacturers from requiring a dealer to maintain separate parts and service departments for each line-make of equipment they sell or service;
• Ensures that local dealers are fairly compensated for diagnostic time spent on repairs and recalls;
• Improves the protections afforded a local dealer from a manufacturer cancelling or terminating a franchise without good cause; and
• Eliminates the requirement that local dealers waive their right to a jury trial and use arbitration to resolve disputes between the manufacturer and the local dealer.

"The General Assembly extended similar protections to new vehicle dealers with an amendment to the Board of Vehicles Act, a law that regulates various aspects of the franchise relationship between vehicle manufacturers and new vehicle dealers," said Waugh.  "So, it is appropriate that we extend such protections to our agricultural equipment dealers."

SB 1169 now goes to the House of Representatives for consideration.