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New York · Through 2026-09-11

N.Y. Vehicle & Traffic Law § 462: Definitions

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Where this section sits in the code
  1. Vehicle & Traffic Law
  2. Title 4. Registration of Vehicles
  3. Article 17-A. Franchised Motor Vehicle Dealer Act

§ 462. Definitions. Whenever used in this article:

1. "Distributor" means any person who primarily offers, sells or

distributes new motor vehicles to franchised motor vehicle dealers or

maintains distributor representatives within the state.

2. "Distributor branch" means a branch office maintained by a

distributor which offers, sells or distributes new motor vehicles to

franchised motor vehicle dealers in this state.

3. "Distributor representative" means a representative employed by a

distributor branch or distributor.

4. "Factory branch" means a branch office maintained for directing and

supervising the representatives of the manufacturer or which office is

maintained for the sale of motor vehicles.

5. "Factory representative" means a representative employed by a

factory branch for the purpose of making or promoting the sale of motor

vehicles or for supervising, servicing, instructing or contacting

franchised motor vehicle dealers or prospective motor vehicle dealers.

6. "Franchise" means a written arrangement for a definite or

indefinite period in which a manufacturer or distributor grants to a

franchised motor vehicle dealer a license to use a trade name, service

mark or related characteristic, and in which there is a community of

interest in the marketing of motor vehicles or services related thereto

at wholesale, retail, by lease or otherwise and/or pursuant to which a

franchised motor vehicle dealer purchases and resells or offers (as

agent, principal, or otherwise) products associated with the name or

mark or related components of the franchise.

7. "Franchised motor vehicle dealer" means: (a) any person required to

be registered pursuant to section four hundred fifteen of this title

which has been granted a franchise as defined in subdivision six of this

section, or (b) any person engaged in the business of selling

snowmobiles, all terrain vehicles and/or personal watercraft at

wholesale or retail who has been granted a franchise; provided, however,

that any person primarily engaged in the sale of vessels and other

marine items who meets the definition of "dealer" as provided in

subdivision one of section eight hundred ten of the general business law

shall not be a "franchised motor vehicle dealer" pursuant to this

article.

8. "Franchisor" means any manufacturer, distributor, distributor

branch or factory branch, importer or other person, partnership,

corporation, association, or entity, whether resident or non-resident,

which enters into or is presently a party to a franchise with a

franchised motor vehicle dealer.

8-a. "Good faith" means, in addition to any common law definitions of

that term, honesty in fact and the observation of reasonable commercial

standards of fair dealing in the trade.

9. "Manufacturer" means any person, partnership, corporation,

association, factory branch or other entity engaged in the business of

manufacturing or assemblying new and unused motor vehicles for sale in

this state.

10. "Motor vehicle" means: (a) any motor vehicle as defined in section

one hundred twenty-five of this chapter, (b) any snowmobile as defined

in article forty-seven of this chapter, (c) any all terrain vehicle as

defined in article forty-eight-B of this chapter and (d) any personal

watercraft as defined in section two of the navigation law, provided the

commissioner shall have authority to except by regulation vehicles other

than passenger automobiles, trucks and motorcycles from such definition.

11. "New motor vehicle" means a vehicle sold or transferred by a

manufacturer, distributor or dealer, which has not been placed in

consumer use or used as a demonstrator.

12. "New motor vehicle product" means any motor vehicle which is of

the same line make of motor vehicle as those which the franchisor has

authorized its existing franchised motor vehicle dealers to sell under

the existing franchises between franchised motor vehicle dealers and the

franchisor.

13. "Line make" means all models of a specific brand of motor vehicle

manufactured by a manufacturer that may manufacture several brands, each

of which are a separate line of make; except that, as such term applies

to the sale of any new house coach, means that group or those groups of

house coaches, as defined by the terms of the written franchise.

14. Notwithstanding the provisions of section one hundred nineteen of

this chapter, for purposes of this article the term "house coach" shall

mean any vehicle motivated by a power connected therewith or propelled

by a power within itself, which is designed to provide temporary living

quarters, and which is built onto, as an integral part of, or is

permanently attached to a motor vehicle chassis, and contains at least

four of the following independent life support systems if each is

permanently installed and designed to be removed only for purposes of

repair or replacement and meets the standards of the American National

Standards Institute for recreation vehicles:

(a) a cooking facility with an on-board fuel source;

(b) a gas or electric refrigerator;

(c) a toilet with exterior evacuation;

(d) a heating or air conditioning system with an on-board power or

fuel source separate from the vehicle engine;

(e) a potable water supply system that includes at least a sink, a

faucet and a water tank with an exterior service supply connection; and

(f) a 110-125 volt electric power supply.

15. "Relevant market area" means:

(a) if the proposed additional or relocated motor vehicle dealer is to

be located in a county having a population in excess of one hundred

thousand, the area within the radius of six miles of the intended site

of the proposed or relocated dealer. Such six mile distance shall be

determined by measuring the distance between the nearest surveyed

boundary of the existing new motor vehicle dealer's principal place of

business and the nearest surveyed boundary line of the proposed or

relocated new motor vehicle dealer's place of business; or

(b) if the proposed additional or relocated motor vehicle dealer is to

be within a county having a population of less than one hundred

thousand, the area within the radius of ten miles of the intended site

of the proposed or relocated dealer. Such ten mile distance shall be

determined by measuring the distance between the nearest surveyed

boundary line of the existing new motor vehicle dealer's principal place

of business and the nearest surveyed boundary line of the proposed or

relocated new motor vehicle dealer's principal place of business.

In determining the population of a county, the most recent census by

the U.S. Bureau of Census or the most recent population update, either

from the National Planning Data Corporation or other similar recognized

source, shall be used.

16. "Captive finance source" means any finance source that provides

automotive-related loans, or purchases retail installment contracts or

lease contracts for motor vehicles and is, directly or indirectly,

owned, operated or controlled, in whole or in part, by a manufacturer,

factory branch, distributor or distributor branch.

17. "Termination" and "terminate" as such terms are used in connection

with the removal of a franchise by a franchisor, means a franchisor's

proposed termination, cancellation, non-renewal, or rescission.

Collected 2026-09-14T19:32:45Z. Source file · JSON

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