<PAGE>

                                                                     EXHIBIT 3.2
 
                                    BY-LAWS

                                      OF

                         FIRSTAMERICA AUTOMOTIVE, INC.
<PAGE>
 
                                     INDEX

<TABLE>
<CAPTION>
                                                                     Page
<S>                                                                  <C>
ARTICLE I STOCKHOLDERS.............................................     1
     1.1.  Annual Meeting..........................................     1
     1.2.  Special Meetings........................................     1
     1.3.  Notice of Meetings......................................     1
     1.4.  Quorum..................................................     1
     1.5.  Organization............................................     2
     1.6.  Conduct of Business.....................................     2
     1.7.  Proxies and Voting......................................     2
     1.8.  Stock List..............................................     2
     1.9.  Stockholder Action by Written Consent...................     3

ARTICLE II BOARD OF DIRECTORS......................................     3
     2.1.  Number and Term of Office...............................     3
     2.2.  Vacancies and Newly Created Directorships...............     3
     2.3.  Removal.................................................     3
     2.4.  Regular Meetings........................................     4
     2.5.  Special Meetings........................................     4
     2.6.  Quorum..................................................     4
     2.7.  Participation in Meetings by Conference Telephone.......     4
     2.8.  Conduct of Business.....................................     4
     2.9.  Powers..................................................     4
     2.10. Compensation of Directors...............................     5
     2.11. Nomination of Director Candidates.......................     5

ARTICLE III COMMITTEES.............................................     5
     3.1.  Committees of the Board of Directors....................     5
     3.2.  Conduct of Business.....................................     6

ARTICLE IV OFFICERS................................................     6
     4.1.  Generally...............................................     6
     4.2.  Chairman of the Board...................................     6
     4.3.  President...............................................     6
     4.4.  Vice President..........................................     6
     4.5.  Chief Financial Officer.................................     7
     4.6.  Secretary...............................................     7
     4.7.  Delegation of Authority.................................     7
     4.8.  Removal.................................................     7
     4.9.  Action With Respect to Securities of Other Corporations.     7

ARTICLE V STOCK....................................................     8
     5.1.  Certificates of Stock...................................     8
     5.2.  Transfers of Stock......................................     8
</TABLE>

                                       i
<PAGE>
 
<TABLE>
<S>                                                                    <C> 
     5.3. Record Date..............................................     8
     5.4. Lost, Stolen or Destroyed Certificates...................     8
     5.5. Regulations..............................................     8

ARTICLE VI NOTICES.................................................     8
     6.1. Notices..................................................     8
     6.2. Waivers..................................................     9

ARTICLE VII MISCELLANEOUS..........................................     9
     7.1. Facsimile Signatures.....................................     9
     7.2. Corporate Seal...........................................     9
     7.3. Reliance Upon Books, Reports and Records.................     9
     7.4. Fiscal Year..............................................     9
     7.5. Time Periods.............................................     9

ARTICLE VIII.......................................................     9
     8.1. Right to Indemnification.................................     9
     8.2. Right of Claimant to Bring Suit..........................    10
     8.3. Non-Exclusivity of Rights................................    11
     8.4. Indemnification Contracts................................    11
     8.5. Insurance................................................    11
     8.6. Effect of Amendment......................................    11

ARTICLE IX AMENDMENTS..............................................    11 
</TABLE>

                                       2
<PAGE>
 
                                    BY-LAWS
                                      OF
                         FIRSTAMERICA AUTOMOTIVE, INC.

                                  ARTICLE I  
                                 STOCKHOLDERS
                                 ------------
 
     Section 1.1.  Annual Meeting.  An annual meeting of the stockholders of
                   --------------                                            
FirstAmerica Automotive, Inc. (the "Corporation"), for the election of directors
and for the transaction of such other business as may properly come before the
meeting, shall be held at such place, on such date, and at such time as the
Board of Directors shall each year fix, which date shall be within thirteen
months subsequent to the later of the date of incorporation or the last annual
meeting of stockholders.

     Section 1.2.  Special Meetings.  Special meetings of the stockholders,
                   ----------------                                          
for any purpose or purposes prescribed in the notice of the meeting, may be
called by (1) the Board of Directors pursuant to a resolution adopted by a
majority of the total number of authorized directors (whether or not there exist
any vacancies in previously authorized directorships at the time any such
resolution is presented to the Board for adoption), (2) the President or (3) the
holders of shares entitled to cast not less than ten percent (10%) of the votes
at the meeting, and shall be held at such place, on such date, and at such time
as they shall fix.  Business transacted at special meetings shall be confined to
the purpose or purposes stated in the notice.

     Section 1.3.  Notice of Meetings.  Written notice of the place, date, and
                   ------------------                                           
time of all meetings of the stockholders shall be given not less than ten (10)
nor more than sixty (60) days before the date on which the meeting is to be
held, to each stockholder entitled to vote at such meeting, except as otherwise
provided herein or required by law (meaning, here and hereinafter, as required
from time to time by the Delaware General Corporation Law or the Certificate of
Incorporation of the Corporation).

     When a meeting is adjourned to another place, date or time, written notice
need not be given of the adjourned meeting if the place, date and time thereof
are announced at the meeting at which the adjournment is taken; provided,
however, that if the date of any adjourned meeting is more than thirty (30) days
after the date for which the meeting was originally noticed, or if a new record
date is fixed for the adjourned meeting, written notice of the place, date, and
time of the adjourned meeting shall be given in conformity herewith.  At any
adjourned meeting, any business may be transacted which might have been
transacted at the original meeting.

     Section 1.4.  Quorum.  At any meeting of the stockholders, the holders
                   ------                                                     
of a majority of all of the shares of the stock entitled to vote at the meeting,
present in person or by proxy, shall constitute a quorum for all purposes,
unless or except to the extent that the presence of a larger number may be
required by law or by the Certificate of Incorporation or By-Laws of this
Corporation.

                                       1
<PAGE>
 
     If a quorum shall fail to attend any meeting, the chairman of the meeting
or the holders of a majority of the shares of stock entitled to vote who are
present, in person or by proxy, may adjourn the meeting to another place, date,
or time.

     If a notice of any adjourned special meeting of stockholders is sent to all
stockholders entitled to vote thereat, stating that it will be held with those
present constituting a quorum, then except as otherwise required by law, those
present at such adjourned meeting shall constitute a quorum, and all matters
shall be determined by a majority of the votes cast at such meeting.

     Section 1.5.  Organization.  Such person as the Board of Directors may
                   ------------                                              
have designated or, in the absence of such a person, the chief executive officer
of the Corporation or, in his absence, such person as may be chosen by the
holders of a majority of the shares entitled to vote who are present, in person
or by proxy, shall call to order any meeting of the stockholders and act as
chairman of the meeting.  In the absence of the Secretary of the Corporation,
the secretary of the meeting shall be such person as the chairman appoints.

     Section 1.6.  Conduct of Business.  The chairman of any meeting of
                   -------------------                                   
stockholders shall determine the order of business and the procedure at the
meeting, including such regulation of the manner of voting and the conduct of
discussion as seem to him in order.

     Section 1.7.  Proxies and Voting.  At any meeting of the stockholders, 
                   ------------------                                        
every stockholder entitled to vote may vote in person or by proxy authorized by
an instrument in writing filed in accordance with the procedure established for
the meeting.

     Each stockholder shall have one vote for every share of stock entitled to
vote which is registered in his name on the record date for the meeting, except
as otherwise provided herein or required by law.

     All voting, except where otherwise required by law, may be by a voice vote;
provided, however, that upon demand therefor by a stockholder entitled to vote
or by his or her proxy, a stock vote shall be taken.  Every stock vote shall be
taken by ballots, each of which shall state the name of the stockholder or proxy
voting and such other information as may be required under the procedure
established for the meeting.  Every vote taken by ballots shall be counted by an
inspector or inspectors appointed by the chairman of the meeting.

     All elections shall be determined by a plurality of the votes cast, and
except as otherwise required by law or these By-Laws, all other matters shall be
determined by a majority of the votes cast.

     Section 1.8.  Stock List.  A complete list of stockholders entitled to
                   ----------                                               
vote at any meeting of stockholders, arranged in alphabetical order for each
class of stock and showing the address of each such stockholder and the number
of shares registered in his or her name, shall be open to the examination of any
such stockholder, for any purpose germane to the meeting, during ordinary
business hours for a period of at least ten (10) days prior to the meeting,
either at a place within

                                       2
<PAGE>
 
the city where the meeting is to be held, which place shall be specified in the
notice of the meeting, or if not so specified, at the place where the meeting is
to be held.

     The stock list shall also be kept at the place of the meeting during the
whole time thereof and shall be open to the examination of any such stockholder
who is present.  This list shall presumptively determine the identity of the
stockholders entitled to vote at the meeting and the number of shares held by
each of them.

     Section 1.9.  Stockholder Action by Written Consent.  Any action which may
                   -------------------------------------                     
be taken at any annual or special meeting of stockholders may be taken without a
meeting and without prior notice, if a consent in writing, setting forth the
actions so taken, is signed by the holders of outstanding shares having not less
than the minimum number of votes which would be necessary to authorize or take
such action at a meeting at which all shares entitled to vote thereon were
present and voted. All such consents shall be filed with the secretary of the
Corporation and shall be maintained in the corporate records. Prompt notice of
the taking of a corporate action without a meeting by less than unanimous
written consent shall be given to those stockholders who have not consented in
writing.

                                 ARTICLE II  
                              BOARD OF DIRECTORS
                              ------------------
 

     Section 2.1.  Number and Term of Office.  The number of directors shall
                   -------------------------                                  
initially be four, and, thereafter, shall be fixed from time to time exclusively
by the Board of Directors pursuant to a resolution adopted by a majority of the
total number of authorized directors (whether or not there exist any vacancies
in previously authorized directorships at the time any such resolution is
presented to the Board for adoption).  Each director shall hold office until his
successor is elected and qualified or until his earlier death, resignation,
retirement, disqualification or removal.

     Section 2.2.  Vacancies and Newly Created Directorships.  Newly created
                   -----------------------------------------                  
directorships resulting from any increase in the authorized number of directors
or any vacancies in the Board of Directors resulting from death, resignation,
retirement, disqualification, or other cause (other then removal from office by
a vote of the stockholders) may be filled only by a majority vote of the
directors then in office, though less than a quorum, and directors so chosen
shall hold office for a term expiring at the next annual meeting of
stockholders.  No decrease in the number of directors constituting the Board of
Directors shall shorten the term of any incumbent director.

     Section 2.3.  Removal.  Subject to the limitations stated in the
                   -------                                              
Certificate of Incorporation, any director, or the entire Board of Directors,
may be removed from office at any time, with or without cause, but only by the
affirmative vote of the holders of at least a majority of the voting power of
all of the then outstanding shares of stock of the Corporation entitled to vote
generally in the election of directors, voting together as a single class.
Vacancies in the Board of Directors resulting from such removal may be filled by
(i) a majority of the directors then in office, though less than a quorum, or
(ii) the stockholders at a special meeting of the stockholders properly called
for that purpose, by the vote of the holders of a majority of the

                                       3
<PAGE>
 
shares entitled to vote at such special meeting.  Directors so chosen shall hold
office until the next annual meeting of stockholders.

     Section 2.4.  Regular Meetings.  Regular meetings of the Board of Directors
                   ----------------                                     
shall be held at such place or places, on such date or dates, and at such time
or times as shall have been established by the Board of Directors and publicized
among all directors. A notice of each regular meeting shall not be required.

     Section 2.5.  Special Meetings.  Special meetings of the Board of
                   ----------------                                     
Directors may be called by a majority of the directors then in office, by the
chairman of the board or by the chief executive officer and shall be held at
such place, on such date, and at such time as they or he shall fix.  Notice of
the place, date, and time of each such special meeting shall be given each
director by whom it is not waived by mailing written notice not less than five
(5) days before the meeting (one (1) day before the meeting if delivered by an
overnight courier service and two (2) days before the meeting if by overseas
courier service) or by telephoning, telecopying, telegraphing or personally
delivering the same not less than twenty-four (24) hours before the meeting.
Unless otherwise indicated in the notice thereof, any and all business may be
transacted at a special meeting.

     Section 2.6.  Quorum.  At any meeting of the Board of Directors, a majority
                   ------                                                 
of the total number of authorized directors shall constitute a quorum for all
purposes. If a quorum shall fail to attend any meeting, a majority of those
present may adjourn the meeting to another place, date, or time, without further
notice or waiver thereof.

     Section 2.7.  Participation in Meetings by Conference Telephone.  Members
                   -------------------------------------------------            
of the Board of Directors, or of any committee of the Board of Directors, may
participate in a meeting of such Board or committee by means of conference
telephone or similar communications equipment by means of which all persons
participating in the meeting can hear each other and such participation shall
constitute presence in person at such meeting.

     Section 2.8.  Conduct of Business.  At any meeting of the Board of
                   -------------------                                   
Directors, business shall be transacted in such order and manner as the Board
may from time to time determine, and all matters shall be determined by the vote
of a majority of the directors present, except as otherwise provided herein or
required by law.  Action may be taken by the Board of Directors without a
meeting if all members thereof consent thereto in writing, and the writing or
writings are filed with the minutes of proceedings of the Board of Directors.

     Section 2.9.  Powers.  The Board of Directors may, except as otherwise
                   ------                                                    
required by law, exercise all such powers and do all such acts and things as may
be exercised or done by the Corporation, including, without limiting the
generality of the foregoing, the unqualified power:

               (1) To declare dividends from time to time in accordance with
law;

               (2) To purchase or otherwise acquire any property, rights or
privileges on such terms as it shall determine;

                                       4
<PAGE>
 
               (3) To authorize the creation, making and issuance, in such form
as it may determine, of written obligations of every kind, negotiable or non-
negotiable, secured or unsecured, and to do all things necessary in connection
therewith;

               (4) To remove any officer of the Corporation with or without
cause, and from time to time to pass on the powers and duties of any officer
upon any other person for the time being;

               (5) To confer upon any officer of the Corporation the power to
appoint, remove and suspend subordinate officers, employees and agents;

               (6) To adopt from time to time such stock option, stock purchase,
bonus or other compensation plans for directors, officers, employees and agents
of the Corporation and its subsidiaries as it may determine;

               (7) To adopt from time to time such insurance, retirement, and
other benefit plans for directors, officers, employees and agents of the
Corporation and its subsidiaries as it may determine; and

               (8) To adopt from time to time regulations, not inconsistent with
these By-Laws, for the management of the Corporation's business and affairs.

     Section 2.10.  Compensation of Directors.  Directors, as such, may receive,
                    -------------------------                            
pursuant to resolution of the Board of Directors, fixed fees and other
compensation for their services as directors, including, without limitation,
their services as members of committees of the Board of Directors.

     Section 2.11.  Nomination of Director Candidates.  Nominations for the
                    ---------------------------------                        
election of directors may be made by the Board of Directors or a proxy committee
appointed by the Board of Directors or by any stockholder entitled to vote in
the election of directors.

                                 ARTICLE III  
                                  COMMITTEES
                                  ----------
 
     Section 3.1.  Committees of the Board of Directors.  The Board of 
                   ------------------------------------                 
Directors, by a vote of a majority of the whole Board, may from time to time
designate committees of the Board, with such lawfully delegable powers and
duties as it thereby confers, to serve at the pleasure of the Board and shall,
for those committees and any others provided for herein, elect a director or
directors to serve as the member or members, designating, if it desires, other
directors as alternate members who may replace any absent or disqualified member
at any meeting of the committee.  Any committee so designated may exercise the
power and authority of the Board of Directors to declare a dividend, to
authorize the issuance of stock or to adopt an agreement of merger or
consolidation if the resolution which designates the committee or a supplemental
resolution of the Board of Directors shall so provide.  In the absence or
disqualification of any member of any

                                       5
<PAGE>
 
committee and any alternate member in his place, the member or members of the
committee present at the meeting and not disqualified from voting, whether or
not he or she or they constitute a quorum, may by unanimous vote appoint another
member of the Board of Directors to act at the meeting in the place of the
absent or disqualified member.

     Section 3.2.  Conduct of Business.  Each committee may determine the
                   -------------------                                     
procedural rules for meeting and conducting its business and shall act in
accordance therewith, except as otherwise provided herein or required by law.
Adequate provision shall be made for notice to members of all meetings; one-
third of the authorized members shall constitute a quorum unless the committee
shall consist of one or two members, in which event one member shall constitute
a quorum; and all matters shall be determined by a majority vote of the members
present.  Action may be taken by any committee without a meeting if all members
thereof consent thereto in writing, and the writing or writings are filed with
the minutes of the proceedings of such committee.

                                  ARTICLE IV
                                   OFFICERS
                                   --------
 
     Section 4.1.  Generally.  The officers of the Corporation shall consist of 
                   ---------                                                    
a President, a Secretary and a Chief Financial Officer.  The Corporation may
also have, at the discretion of the Board of Directors, a Chairman of the Board,
one or more Vice Presidents, and such other officers as may from time to time be
appointed by the Board of Directors.  Officers shall be elected by the Board of
Directors, which shall consider that subject at its first meeting after every
annual meeting of stockholders.  Each officer shall hold office until his or her
successor is elected and qualified or until his or her earlier resignation or
removal.  Any number of offices may be held by the same person.

     Section 4.2.  Chairman of the Board.  The Chairman of the Board, if there
                   ---------------------                                        
shall be such an officer, shall, if present, preside at all meetings of the
Board of Directors, and exercise and perform such other powers and duties as may
be from time to time assigned to him by the Board of Directors or as provided by
these By-Laws.

     Section 4.3.  President.  Subject to such supervisory powers, if any, as
                   ---------                                                  
may be given by the Board of Directors to the Chairman of the Board, if there be
such an officer, the President shall be the general manager and chief executive
officer of the Corporation and shall, subject to the control of the Board of
Directors, have general supervision, direction, and control of the business and
officers of the Corporation.  He shall preside at all meetings of the
stockholders.  He shall be ex officio a member of all the standing committees,
including the executive committee, if any, and shall have the general powers and
duties of management usually vested in the office of president of a Corporation,
and shall have such other powers and duties as may be prescribed by the Board of
Directors or by these By-Laws.

     Section 4.4.  Vice President.  In the absence or disability of the
                   --------------                                        
President, the Vice Presidents in order of their rank as fixed by the Board of
Directors, or if not ranked, the Vice President designated by the Board of
Director, shall perform the duties of the President, and when so acting shall
have all the powers of, and be subject to all the restrictions upon, the
President.

                                       6
<PAGE>
 
The Vice Presidents shall have such other powers and perform such other duties
as from time to time may be prescribed for them respectively by the Board of
Directors or these By-Laws.

     Section 4.5.  Chief Financial Officer.  The Chief Financial Officer shall
                   -----------------------                                      
keep and maintain or cause to be kept and maintained, adequate and correct books
and records of account in written form or any other form capable of being
converted into written form.

     The Chief Financial Officer shall deposit all monies and other valuables in
the name and to the credit of the Corporation with such depositaries as may be
designated by the Board of Directors.  He shall disburse all funds of the
Corporation as may be ordered by the Board of Directors, shall render to the
President and directors, whenever they request it, an account of all of his
transactions as Chief Financial Officer and of the financial condition of the
Corporation, and shall have such other powers and perform such other duties as
may be prescribed by the Board of Directors or by these By-Laws.

     Section 4.6.  Secretary.  The Secretary shall keep, or cause to be kept, a
                   ---------                                                    
book of minutes in written form of the proceedings of the Board of Directors,
committees of the Board, and stockholders.  Such minutes shall include all
waivers of notice, consents to the holding of meetings, or approvals of the
minutes of meetings executed pursuant to these By-Laws or the Delaware General
Corporation Law.  The Secretary shall keep, or cause to be kept at the principal
executive office or at the office of the Corporation's transfer agent or
registrar, a record of its stockholders, giving the names and addresses of all
stockholders and the number and class of shares held by each.

     The Secretary shall give or cause to be given, notice of all meetings of
the stockholders and of the Board of Directors required by these By-Laws or by
law to be given, and shall keep the seal of the Corporation in safe custody, and
shall have such other powers and perform such other duties as may be prescribed
by the Board of Directors or these By-Laws.

     Section 4.7.  Delegation of Authority.  The Board of Directors may from
                   -----------------------                                    
time to time delegate the powers or duties of any officer to any other officers
or agents, notwithstanding any provision hereof.

     Section 4.8.  Removal.  Any officer of the Corporation may be removed at
                   -------                                                      
any time, with or without cause, by the Board of Directors.

     Section 4.9.  Action With Respect to Securities of Other Corporations. 
                   -------------------------------------------------------    
Unless otherwise directed by the Board of Directors, the President or any
officer of the Corporation authorized by the President shall have power to vote
and otherwise act on behalf of the Corporation, in person or by proxy, at any
meeting of stockholders of or with respect to any action of stockholders of any
other corporation in which this Corporation may hold securities and otherwise to
exercise any and all rights and powers which this Corporation may possess by
reason of its ownership of securities in such other corporation.

                                       7
<PAGE>
 
                                   ARTICLE V
                                     STOCK
                                     -----

     Section 5.1.  Certificates of Stock.  Each stockholder shall be entitled to
                   ---------------------                                       
a certificate signed by, or in the name of the Corporation by, the President or
a Vice President, and by the Secretary or an Assistant Secretary, or the Chief
Financial Officer, certifying the number of shares owned by him or her. Any of
or all the signatures on the certificate may be facsimile.

     Section 5.2.  Transfers of Stock.  Transfers of stock shall be made only
                   ------------------                                          
upon the transfer books of the Corporation kept at an office of the Corporation
or by transfer agents designated to transfer shares of the stock of the
Corporation.  Except where a certificate is issued in accordance with Section
5.4 of these By-Laws, an outstanding certificate for the number of shares
involved shall be surrendered for cancellation before a new certificate is
issued therefor.

     Section 5.3.  Record Date.  The Board of Directors may fix a record date,
                   -----------                                                 
which shall not be more than sixty (60) nor fewer than ten (10) days before the
date of any meeting of stockholders, nor more than sixty (60) days prior to the
time for the other action hereinafter described, as of which there shall be
determined the stockholders who are entitled:  to notice of or to vote at any
meeting of stockholders or any adjournment thereof; to receive payment of any
dividend or other distribution or allotment of any rights; or to exercise any
rights with respect to any change, conversion or exchange of stock or with
respect to any other lawful action.

     Section 5.4.  Lost, Stolen or Destroyed Certificates.  In the event of
                   --------------------------------------                    
the loss, theft or destruction of any certificate of stock, another may be
issued in its place pursuant to such regulations as the Board of Directors may
establish concerning proof of such loss, theft or destruction and concerning the
giving of a satisfactory bond or bonds of indemnity.

     Section 5.5.  Regulations.  The issue, transfer, conversion and
                   -----------                                       
registration of certificates of stock shall be governed by such other
regulations as the Board of Directors may establish.

                                  ARTICLE VI
                                    NOTICES
                                    -------
 
     Section 6.1.  Notices .  Except as otherwise specifically provided herein
                   -------                                                     
or required by law, all notices required to be given to any stockholder,
director, officer, employee or agent shall be in writing and may in every
instance be effectively given by hand delivery to the recipient thereof, by
depositing such notice in the mails, postage paid, or by sending such notice by
prepaid telegram, mailgram, telecopy or commercial courier service.  Any such
notice shall be addressed to such stockholder, director, officer, employee or
agent at his or her last known address as the same appears on the books of the
Corporation.  The time when such notice shall be deemed to be given shall be the
time such notice is received by such stockholder, director, officer, employee or
agent, or by any person accepting such notice on behalf of such person, if hand
delivered, or the time such notice is dispatched, if delivered through the mails
or by telegram, courier or mailgram.

                                       8
<PAGE>
 
     Section 6.2.  Waivers.  A written waiver of any notice, signed by a
                   -------                                                
stockholder, director, officer, employee or agent, whether before or after the
time of the event for which notice is to be given, shall be deemed equivalent to
the notice required to be given to such stockholder, director, officer, employee
or agent.  Neither the business nor the purpose of any meeting need be specified
in such a waiver.  Attendance of a person at a meeting shall constitute a waiver
of notice for such meeting, except when the person attends a meeting for the
express purpose of objecting, at the beginning of the meeting, to the
transaction of any business because the meeting is not lawfully called or
convened.

                                 ARTICLE VII 
                                 MISCELLANEOUS
                                 -------------
 
     Section 7.1.  Facsimile Signatures.  In addition to the provisions for
                   --------------------                                      
use of facsimile signatures elsewhere specifically authorized in these By-Laws,
facsimile signatures of any officer or officers of the Corporation may be used
whenever and as authorized by the Board of Directors or a committee thereof.

     Section 7.2.  Corporate Seal.  The Board of Directors may provide a
                   --------------                                         
suitable seal, containing the name of the Corporation, which seal shall be in
the charge of the Secretary.  If and when so directed by the Board of Directors
or a committee thereof, duplicates of the seal may be kept and used by the Chief
Financial Officer or by an Assistant Secretary or other officer designated by
the Board of Directors.

     Section 7.3.  Reliance Upon Books, Reports and Records.  Each director,
                   ----------------------------------------                   
each member of any committee designated by the Board of Directors, and each
officer of the Corporation shall, in the performance of his duties, be fully
protected in relying in good faith upon the books of account or other records of
the Corporation, including reports made to the Corporation by any of its
officers, by an independent certified public accountant, or by an appraiser.

     Section 7.4.  Fiscal Year.  The fiscal year of the Corporation shall be as
                   -----------                                                
fixed by the Board of Directors.

     Section 7.5.  Time Periods.  In applying any provision of these By-Laws
                   ------------                                              
which require that an act be done or not done a specified number of days prior
to an event or that an act be done during a period of a specified number of days
prior to an event, calendar days shall be used, the day of the doing of the act
shall be excluded, and the day of the event shall be included.

                                 ARTICLE VIII
                   INDEMNIFICATION OF DIRECTORS AND OFFICERS
                   -----------------------------------------

     Section 8.1.  Right to Indemnification.  Each person who was or is made a
                   ------------------------                                     
party or is threatened to be made a party to or is involved in any action, suit
or proceeding, whether civil, criminal, administrative or investigative
("proceeding"), by reason of the fact that he or she or a person of whom he or
she is the legal representative, is or was a director, officer or employee of
the Corporation or is or was serving at the request of the Corporation as a
director, officer or

                                       9
<PAGE>
 
employee of another corporation, or of a partnership, joint venture, trust or
other enterprise, including service with respect to employee benefit plans,
whether the basis of such proceeding is alleged action in an official capacity
as a director, officer or employee or in any other capacity while serving as a
director, officer or employee, shall be indemnified and held harmless by the
Corporation to the fullest extent authorized by the Delaware General Corporation
Law, as the same exists or may hereafter be amended (but, in the case of any
such amendment, only to the extent that such amendment permits the Corporation
to provide broader indemnification rights than said Law permitted the
Corporation to provide prior to such amendment) against all expenses, liability
and loss (including attorneys' fees, judgments, fines, ERISA excise taxes or
penalties, amounts paid or to be paid in settlement and amounts expended in
seeking indemnification granted to such person under applicable law, this By-law
or any agreement with the Corporation) reasonably incurred or suffered by such
person in connection therewith and such indemnification shall continue as to a
person who has ceased to be a director, officer or employee and shall inure to
the benefit of his or her heirs, executors and administrators; provided,
                                                               -------- 
however, that, except as provided in Section 8.2, the Corporation shall
-------                                                                
indemnify any such person seeking indemnity in connection with an action, suit
or proceeding (or part thereof) initiated by such person only if (a) such
indemnification is expressly required to be made by law, (b) the action, suit or
proceeding (or part thereof) was authorized by the Board of Directors of the
Corporation, (c) such indemnification is provided by the Corporation, in its
sole discretion, pursuant to the powers vested in the Corporation under the
Delaware General Corporation Law, or (d) the action, suit or proceeding (or part
thereof) is brought to establish or enforce a right to indemnification under an
indemnity agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law.  Such right shall be a
contract right and shall include the right to be paid by the Corporation
expenses incurred in defending any such proceeding in advance of its final
disposition; provided, however, that, if the Delaware General Corporation Law
             --------  -------                                               
then so requires, the payment of such expenses incurred by a director or officer
of the Corporation in his or her capacity as a director or officer (and not in
any other capacity in which service was or is rendered by such person while a
director or officer, including, without limitation, service to an employee
benefit plan) in advance of the final disposition of such proceeding, shall be
made only upon delivery to the Corporation of an undertaking, by or on behalf of
such director or officer, to repay all amounts so advanced if it should be
determined ultimately that such director or officer is not entitled to be
indemnified under this Section or otherwise.

     Section 8.2.  Right of Claimant to Bring Suit.  If a claim under Section 
                   -------------------------------                             
8.1 is not paid in full by the Corporation within ninety (90) days after a
written claim has been received by the Corporation, the claimant may at any time
thereafter bring suit against the Corporation to recover the unpaid amount of
the claim and, if such suit is not frivolous or brought in bad faith, the
claimant shall be entitled to be paid also the expense of prosecuting such
claim.  It shall be a defense to any such action (other than an action brought
to enforce a claim for expenses incurred in defending any proceeding in advance
of its final disposition where the required undertaking, if any, has been
tendered to this Corporation) that the claimant has not met the standards of
conduct which make it permissible under the Delaware General Corporation Law for
the Corporation to indemnify the claimant for the amount claimed, but the burden
of proving such defense shall be on the Corporation.  Neither the failure of the
Corporation (including its Board of Directors,

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independent legal counsel, or its stockholders) to have made a determination
prior to the commencement of such action that indemnification of the claimant is
proper in the circumstances because he or she has met the applicable standard of
conduct set forth in the Delaware General Corporation Law, nor an actual
determination by the Corporation (including its Board of Directors, independent
legal counsel, or its stockholders) that the claimant has not met such
applicable standard of conduct, shall be a defense to the action or create a
presumption that a claimant has not met such applicable standard of conduct.

     Section 8.3.  Non-Exclusivity of Rights.  The rights conferred on any
                   -------------------------                               
person by Sections 8.1 and 8.2 shall not be exclusive of any other right which
such persons may have or hereafter acquire under any statute, provision of the
Certificate of Incorporation, bylaw, agreement, vote of stockholders or
disinterested directors or otherwise.

     Section 8.4.  Indemnification Contracts.  The Board of Directors is
                   -------------------------                              
authorized to enter into a contract with any director, officer, employee or
agent of the Corporation, or any person serving at the request of the
Corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, including employee
benefit plans, providing for indemnification rights equivalent to or, if the
Board of Directors so determines, greater than, those provided for in this
Article VIII.

     Section 8.5.  Insurance.  The Corporation may maintain insurance to the
                   ---------                                                 
extent reasonably available, at its expense, to protect itself and any such
director, officer, employee or agent of the Corporation or another corporation,
partnership, joint venture, trust or other enterprise against any such expense,
liability or loss, whether or not the Corporation would have the power to
indemnify such person against such expense, liability or loss under Delaware
General Corporation Law.

     Section 8.6.  Effect of Amendment.  Any amendment, repeal or modification
                   -------------------                                          
of any provision of this Article VIII by the stockholders or the directors of
the Corporation shall not adversely affect any right or protection of a director
or officer of the Corporation existing at the time of such amendment, repeal or
modification.

                                  ARTICLE IX
                                  AMENDMENTS
                                  ----------
 
     The Board of Directors is expressly empowered to adopt, amend or repeal By-
Laws of the Corporation, subject to the right of the stockholders to adopt,
amend, alter or repeal the By-Laws of the Corporation.  Any adoption, amendment
or repeal of By-Laws of the Corporation by the Board of Directors shall require
the approval of a majority of the total number of authorized directors (whether
or not there exist any vacancies in previously authorized directorships at the
time any resolution providing for adoption, amendment or repeal is presented to
the Board).  The stockholders shall also have power to adopt, amend or repeal
the By-Laws of the Corporation.

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