By Grant Bosse | New Hampshire Watchdog
CONCORD, N.H. — A group of equipment manufacturers has filed a lawsuit against a new law giving local franchises special treatment, and is asking the court to block the law’s requirements.
The companies claim the provisions of SB 126, known as the “Auto Dealers Bill of Rights”, impair the ability of manufacturers to enter into contracts with local franchises, and are unconstitutional under state and federal law.
John Deere, AgCo and Case New Holland have brought the new suit in the Northern District of Hillsborough County Superior Court.
Like all states, New Hampshire has long prohibited automobile manufacturers from selling cars directly to the public, which greatly increases the value of local car dealer franchises.
New Hampshire’s “Auto Dealers Bill of Rights” also places limits on what the factory can require of local dealers. This year, dealers fought for and won broad extensions of those provisions, including limits on how often car companies can require local dealers to remodel their showrooms.
Broad bipartisan majorities in the House and Senate also expanded the law to cover farm and other equipment dealers not previously covered under the motor vehicle statute. Gov. Maggie Hassan signed SB 126 into law in June.
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