I 

111TH CONGRESS 

1ST SESSION H. R. 3450 

To prohibit certain restraints of competition adversely affecting automobile 

dealers. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2009 

Ms. JACKSON-LEE of Texas (for herself, Mr. JOHNSON of Georgia, Ms. 

FUDGE, Ms. KILPATRICK of Michigan, Ms. CLARKE, Mr. HARE, Mr. POE

of Texas, Mr. MASSA, Mr. COHEN, Mr. BERRY, Mr. FALEOMAVAEGA, Mr. 

TONKO, Mr. KUCINICH, Mr. REYES, Ms. CORRINE BROWN of Florida, 

and Mr. ROTHMAN of New Jersey) introduced the following bill; which 

was referred to the Committee on Energy and Commerce 

A BILL 

To prohibit certain restraints of competition adversely 

affecting automobile dealers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Automobile Dealers 

5 Fair Competition Act of 2009’’. 


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1 SEC. 2. PROHIBITION AGAINST CERTAIN RESTRAINTS OF 

2 TRADE. 

3 (a) PROHIBITION.—It shall be unlawful for any new 

4 automobile manufacturer (as defined in subsection (c)) en5 gaged in commerce, in the course of such commerce, di6 rectly or indirectly, to unreasonably discriminate against, 

7 or unreasonably deny a franchise to, an automobile dealer 

8 (as defined in subsection (d)) in any case in which the 

9 automobile dealer applies to such manufacturer, within 60 

10 days after the date of the enactment of this Act, for the 

11 retention of its franchise and presents adequate evidence 

12 that it is a going concern. 

13 (b) EXPEDITED ACTIONS TO PROTECT FRANCHISE

14 AGREEMENTS.—In order to protect the economic rights 

15 of automobile dealers, if at the end of 90 days following 

16 the date of the enactment of this Act, if a new automobile 

17 manufacturer has not entered into an agreement with an 

18 automobile dealer to restore its franchise, the automobile 

19 dealer, at the dealer’s option, shall be able to seek enforce20 ment of its rights under subsection (a) by filing an action 

21 therefor in a United Stated district court under a proce22 dure in which a master appointed by the court shall hear 

23 the matter and make a recommendation to the court with24 in 90 days after the filing of the action. The court shall 

25 adopt the master’s recommendation if in accord with the 

26 law and facts. The provisions of this subsection shall not 


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1 be in derogation of any rights an automobile dealer other2 wise has under this section. 

3 (c) DEFINITION OF ‘‘NEW AUTOMOBILE MANUFAC4 TURER’’.—As used in subsection (a), the term ‘‘new auto5 mobile manufacturer’’ means an automobile manufac6 turing company established in 2009 that is the successor 

7 to another automobile manufacturing company and ac8 quires in such year the assets of the predecessor auto9 mobile manufacturing company in a transaction governed 

10 by section 363 of title 11 of the United States Code. 

11 (d) DEFINITION OF ‘‘AUTOMOBILE DEALER’’.—As 

12 used in subsection (a), the term ‘‘automobile dealer’’ 

13 means any automobile dealer in the United States that, 

14 on January 1, 2009, held a franchise granted by an auto15 mobile manufacturing company that was the predecessor 

16 company to a new automobile manufacturer to sell that 

17 company’s automobiles, but that, on the date of the enact18 ment of this Act, has not entered an agreement with the 

19 new automobile manufacturer that is a successor to that 

20 company to continue serving as a franchisee. 

Æ 


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