N.Y. Vehicle & Traffic Law § 466: Unreasonable restrictions

§ 466. Unreasonable restrictions. 1. It shall be unlawful for a

franchisor directly or indirectly to impose unreasonable restrictions on

the franchised motor vehicle dealer relative to transfer, sale, right to

renew or termination of a franchise, discipline, noncompetition

covenants, site-control (whether by sublease, collateral pledge of lease

or otherwise), right of first refusal to purchase, option to purchase,

compliance with subjective standards and assertion of legal or equitable

rights with respect to its franchise or dealership.

2. It shall be deemed an unreasonable restriction upon the sale or

transfer of a dealership for a franchisor (i) directly or indirectly to

prevent or attempt to prevent a franchised motor vehicle dealer from

obtaining the fair value of the franchise or the fair value of the

dealership business as a going concern; or (ii) to refuse to approve the

sale or transfer of a dealership due to the fact that the franchised

motor vehicle dealer owns, has an investment in, participates in the

management of or holds a franchise for the sale or service of another

line make of new motor vehicles, or that the franchised motor vehicle

dealer has established another franchise in the same dealership

facilities for the sale or service of another line make of new motor

vehicles prior to the effective date of this paragraph, or the other

franchise has been approved in writing by the franchisor.