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SB 885

AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- REGULATION OF BUSINESS PRACTICES AMONG MOTOR VEHICLE MANUFACTURERS, DISTRIBUTORS, AND DEALERS

2025 Regular Session Introduced by Jonathon Acosta and 6 co-sponsors

Rhode Island bill regulating manufacturer-distributor-dealer relationships to establish business practice standards and franchise protections in the automotive industry.

04/01/2025 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · SB 885

Legislative bill overview

SB 885 would regulate business practices and relationships between motor vehicle manufacturers, distributors, and dealers in Rhode Island. The bill addresses franchise agreements, pricing practices, and dealer protections within the automotive supply chain. It establishes standards for how these entities can conduct business with one another.

Why is this important

The automotive industry is a significant economic sector, and dealer protections directly affect local business viability and consumer access to vehicles. Regulations governing manufacturer-dealer relationships can influence vehicle pricing, availability, service quality, and local employment in Rhode Island communities.

Potential points of contention

  • Manufacturer autonomy vs. dealer protection: Manufacturers may argue that regulations limiting their business practices restrict legitimate competitive decisions, while dealers contend they need protections against unequal bargaining power
  • Franchise agreement terms: Disputes likely over what constitutes fair contract terms, termination rights, territorial exclusivity, and financial obligations between parties
  • Economic impact concerns: Questions about whether stricter regulations increase vehicle costs for consumers, limit market competition, or protect inefficient dealers from market forces

Compiled from official sources — confirm details with the bill’s official record.

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