Automobile Dealers Day in Court Act Law and Legal Definition

Automobile Dealers Day in Court Act is enacted to balance the power weighted in favor of automobile manufacturers, by enabling franchise automobile dealers to bring suit to recover damages sustained by reason of the failure of manufacturers to act in good faith in complying with the terms of franchises or in terminating or not renewing franchises with dealers.

The Act covers an action based on a wrongful termination of a franchise where the dealer was forced to terminate because of coercive and intimidative acts of the manufacturer. [Hanley v. Chrysler Motors Corp., 433 F.2d 708 (10th Cir. N.M. 1970)].