An Act to supplement the antitrust laws of the United States, in order to balance the power now heavily weighted in favor of automobile manufacturers, by enabling franchise automobile dealers to bring suit in the district courts of the United States to r
PL 84-1026 (S.3879), enacted 08/08/1956

70 
S T A T . ] 
PUBLIC LAW 1026--AUG. 8, 1956 
1125 
Public Law 1026 
CHAPTER 1038 
AN ACT 
To supplement the antitrust laws of the United States, in order to balance the 
power now heavily weighted in favor of automobile manufacturers, by en-
abling franchise automobile dealers to bring suit in the district courts of the 
United States to recover damages sustained by reason of the failure of auto-
mobile manufacturers to act in good faith in complying with the terms of 
franchises or in terminating or not renewing franchises with their dealers. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That as used in this 
Aclr-
(a) The term "automobile manufacturer" shall mean any person, 
partnership, corporation, association, or other form of business enter-
prise engaged in the manufacturing or assembling of passenger cars, 
trucks, or station wagons, including any person, partnership, or cor-
poration which acts for and is under the control of such manufacturer 
or assembler in connection with the distribution of said automotive 
vehicles. 
(b) The term "franchise" shall mean the written agreement or 
contract between any automobile manufacturer engaged m commerce 
and any automobile dealer which purports to fix the legal rights and 
liabilities of the parties to such agreement or contract. 
(c) The term "automobile dealer" shall mean any person, partner-
ship, corporation, association, or other form of business enterprise resi-
dent in the United States or in any Territory thereof or in the Dis-
trict of Columbia operating under the terms of a franchise and en-
gaged in the sale or distribution of passenger cars, trucks, or station 
wagons. 
(d) The term "commerce" shall mean commerce among the several 
States of the United States or with foreign nations, or in any Terri-
tory of the United States or in the District of Columbia, or among 
the Territories or between any Territory and any State or foreign 
nation, or between the District of Columbia and any State or Terri-
tory or foreign nation. 
(e) The term "good faith" shall mean the duty of each party to 
any franchise, and all officers, employees, or agents thereof to act in a 
fair and equitable manner toward each other so as to guarantee the 
one party freedom from coercion, intimidation, or threats of coercion 
or intimidation from the other party: Provided^ That recommenda-
tion, endorsement, exposition, persuasion, urging or argument shall 
not be deemed to constitute a lack of good faith. 
SEC. 2. An automobile dealer may bring suit against any automobile 
manufacturer engaged in commerce, in any district court of the 
United States in the district in which said manufacturer resides, or 
is found, or has an agent, without respect to the amount in controversy, 
and shall recover the damages by him sustained and the cost of suit 
by reason of the failure of said automobile manufacturer from and 
after the passage of this Act to act in good faith in performing or 
complying with any of the terms or provisions of the franchise, or in 
terminating, canceling, or not renewing the franchise with said dealer: 
Provided^ That in any such suit the manufacturer shall not be barred 
from asserting in defense of any such action the failure of the dealer 
to act in good faith. 
SEC. 3. Any action brought pursuant to this Act shall be forever 
barred unless commenced within three years after the cause of action 
shall have accrued. 
SEC. 4. No provision of this Act shall repeal, modify, or supersede, 
directly or indirectly, any provision of the antitrust laws of the United 
States. 
August 8, 1956 
[S. 3879] 
A u t o m o b i l e 
dealers. 
Definitions. 
Suits 
a g a i n s t 
automobile manu-
facturers. 
1126 
PUBLIC LAW 1027-AUG. 8, 1956 
[70 
S T A T 
SEC, 5. This Act shall not invalidate any provision of the laws of 
any State except insofar as there is a direct conflict between an express 
provision of this Act and an express provision of State law which can 
not be reconciled. 
Approved August 8, 1966. 
August 8, 1956 
[S. 2379] 
Public Law 1027 
CHAPTER 1039 
AN ACT 
To promote the fishing industry in the United States and its Territories by 
providing for the training of needed personnel for such industry. 
Be it enacted hy the Senate and House of Representatives 
of the 
^^ishing Indus- jjunited States of America in Congress assembled, That (a) the Sec-
1 ^"rm""*^ * " ^ retary of the Interior is authorized to make grants, out of funds 
ng gran s. 
appropriated for the purposes of this section, to public and nonprofit 
private universities and colleges in the several States and Territories 
of the United States for such purposes as may be necessary to pro-
mote the education and training of professionally trained personnel 
(including scientists, technicians, and teachers) needed in the field of 
commercial fishing. Any amount appropriated for the purposes of 
this section shall be apportioned on an equitable basis, as determined 
by the Secretary of the Interior, among the several States and Terri-
tories for the purpose of making grants within each such State and 
Territory. 
In making such apportionment the Secretary of the 
Interior shall take into account the extent of the fishing industry 
within each State and Territory as compared with the total fishing 
industry of the United States (including Territories), and such other 
factors as may be relevant in view of the purposes of this section. 
(b) There are authorized to be appropriated not in excess of 
$550,000 for the fiscal year beginning on July 1, 1955, and for each 
fiscal year thereafter for the purposes of this section. 
(c) The Secretary of the Interior may establish such regulations 
as may be necessary to carry out the provisions of this section. 
SEC. 2. (a) Section 3 (a) of the Vocational Education Act of 1946 
is amended by inserting after paragraph (4) the following new 
paragraph: 
"(5) $375,000 for vocational education in the fishery trades and 
industry and distributive occupations therein, to be apportioned for 
expenditure in the several States and Territories on an equitable basis, 
as determined by the United States Commissioner of Education 
after consultation with the Secretary of the Interior, taking into 
account the extent of the fishing industry of each State and Territory 
as compared with the total fishing industry of the United States 
(including Territories)." 
(b) Section 3 (b) of such Act is amended by striking out "para-
graphs (1) to (4)" and inserting in lieu thereof "paragraphs (1) 
to (5)". 
Approved August 8, 1956. 
Approprlatiom 
Regulations. 
60 Stat. 775. 
20 u s e 15J. 
^proprlatlon. 
Public Law 1028 
CHAPTER 1041 
* .n .oc« 
AN ACT 
AuEUBt 10, 1956 
[H. R. 7049] 
J Q revise, codify, and enact into law, title 10 of the United States Code, entitled 
"Armed Forces", and title 32 of the United States Code, entitled "National 
Guard " 
[This Act is printed as Volume 70A, U. S. Statutes at Large.]