An Act to Clarify Contractual Rights of Personal Sports Mobile
Maine Legislature, Session 132, LD 2104
Committee: Housing and Economic Development
Sponsors: JULIA
Amends: 10 MRSA §1243, 10 MRSA §1250-F

Legislative Document
No. 2104
H.P. 1419
House of Representatives, January 7, 2026
An Act to Clarify Contractual Rights of Personal Sports Mobile 
Dealers
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Housing and Economic Development suggested and 
ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative JULIA of Waterville.
Cosponsored by Representatives: EDER of Waterboro, GERE of Kennebunkport, SMITH of 
Palermo, Senators: BRADSTREET of Kennebec, CURRY of Waldo.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA §1243, sub-§3, ¶A, as enacted by PL 1997, c. 473, §3, is 
amended to read:
A.  To refuse to deliver in reasonable quantities and within a reasonable time after 
receipt of a dealer's order to any personal sports mobile dealer having a franchise or 
contractual arrangement for the retail sale of new personal sports mobiles sold or 
distributed by a manufacturer any personal sports mobiles that are covered by that 
franchise or contract and specifically publicly advertised by that manufacturer to be 
available for immediate delivery; however, the failure to deliver any personal sports 
mobile is not a violation of this chapter if that failure is due to an act of God, or work 
stoppage or delay due to a strike or labor difficulty, shortage of materials, freight 
embargo or other cause over which the manufacturer or any of its agents has no 
control;.
The allocation of new personal sports mobiles must be made on a fair and equitable 
basis for each model of new personal sports mobiles and made in accordance with 
section 1244. The manufacturer has the burden of establishing the fairness of its 
allocation system. It is prima facie evidence that a determination to cancel, terminate, 
fail to renew or refuse to continue a franchise relationship with a personal sports mobile 
dealer based in whole or in part on poor sales performance or poor market penetration 
is not made with good cause when prior to the determination the manufacturer failed 
to provide the dealer a fair and adequate supply and mix of new personal sports 
mobiles, which includes but is not limited to the allocation of new personal sports 
mobiles under a separate dealer designation, including but not limited to designations 
such as "premier," "business class or elite" or any other designation.
A separate dealer agreement is not required of a personal sports mobile dealer already 
a party to a dealer agreement or franchise agreement for the retail sale of any particular 
new personal sports mobile model made or distributed by a manufacturer, except that 
a manufacturer may require a dealer to purchase special tools or equipment, stock 
reasonable quantities of certain parts, purchase reasonable quantities of promotional 
materials or participate in training programs that are reasonably necessary for the dealer 
to sell or service any new personal sports mobile model. Training programs for 
technicians must be available remotely. Any special tools, parts or signs not used within 
years of receipt by the dealer may be returned by the dealer to the manufacturer for 
a full refund of the cost of those special tools, parts or signs;
Sec. 2.  10 MRSA §1243, sub-§3, ¶B, as amended by PL 1997, c. 717, §1, is further 
amended to read:
B.  To coerce or attempt to coerce any personal sports mobile dealer to enter into any 
agreement with a manufacturer or an officer, agent or other representative of a 
manufacturer, or to do any other act prejudicial to that dealer by threatening to cancel 
any franchise or any contractual agreement existing between the manufacturer and that 
dealer; however, notice in good faith to any personal sports mobile dealer of that 
dealer's violation of any terms or provisions of the franchise or contractual agreement, 
or any good faith attempt by the manufacturer to enforce the terms or provisions of the 
franchise or contractual agreement, does not constitute a violation of this chapter;.  
Conduct prohibited under this paragraph includes, but is not limited to, a manufacturer 
or an officer, agent or other representative of a manufacturer threatening to or 
attempting to modify a dealer's franchise or contractual agreement during the term of 
the franchise or contractual agreement or upon its renewal, when: the modification 
substantially and adversely affects the personal sports mobile dealer's rights, 
obligations, investment or return on investment; the manufacturer has not provided 90 
days' written notice by certified mail of the proposed modification to the personal 
sports mobile dealer; and the modification is not required by law.
Within 90 days from the date the manufacturer provides the written notice of a 
proposed modification or within 90 days from the date the manufacturer threatens or 
attempts to impose a modification, the personal sports mobile dealer may serve notice 
upon the manufacturer of a protest requesting a determination of whether there is good 
cause for permitting a proposed modification. The manufacturer has the burden of 
proving good cause. Multiple protests pertaining to the same proposed modification 
must be consolidated. The proposed modification may not take effect while the 
determination of the matter is pending. In determining whether there is good cause for 
permitting a proposed modification, any relevant factors must be considered, including 
but not limited to:
(1)  The reasons for the proposed modification;
(2)  Whether the proposed modification is applied to or affects all personal sports 
mobile dealers in a nondiscriminatory manner;
(3)  Whether the proposed modification will have a substantial and adverse effect 
upon the dealer’s investment or return on investment;
(4)  Whether the proposed modification is in the public interest;
(5)  Whether the proposed modification is necessary to the orderly and profitable 
distribution of personal sports mobiles; and
(6)  Whether the proposed modification is offset by other modifications beneficial 
to the dealer.
Notice in good faith to any personal sports mobile dealer of that dealer's violation of 
any terms or provisions of the franchise or contractual agreement, or any good faith 
attempt by the manufacturer to enforce the terms or provisions of the franchise or 
contractual agreement, does not constitute a violation of this chapter;
Sec. 3.  10 MRSA §1243, sub-§3, ¶D, as enacted by PL 1997, c. 473, §3, is 
amended to read:
D.  To offer to sell or to sell any new personal sports mobile at a lower price than the 
price offered to any other personal sports mobile dealer for the same model vehicle 
similarly equipped, or to utilize facilities renovation, market area penetration or any 
device, including, but not limited to, sales promotion plans or programs, that result 
results in that lower price.  This paragraph does not apply to the following:
(1)  Sales to a personal sports mobile dealer for resale to any unit of the Federal 
Government;
(2)  Any manufacturer or any of its agents offering to sell or selling new personal 
sports mobiles to all personal sports mobile dealers at an equal price; and
(3)  Sales by a manufacturer or any of its agents to any unit of the Federal 
Government;
Sec. 4.  10 MRSA §1243, sub-§3, ¶J, as enacted by PL 1997, c. 473, §3, is amended 
to read:
J.  To compete with a personal sports mobile dealer operating under an agreement or 
franchise from a manufacturer in a relevant market area that has been determined 
exclusively by equitable principles in this State.  A manufacturer is not considered to 
be competing when operating a dealership either temporarily for a reasonable period 
not to exceed one year or in a bona fide relationship in which an independent person 
has made a significant investment subject to loss in the dealership and can reasonably 
expect to acquire full ownership of the dealership on reasonable terms and conditions;
Sec. 5.  10 MRSA §1243, sub-§3, ¶Q, as amended by PL 2019, c. 113, Pt. C, §5, 
is further amended to read:
Q.  To cancel, terminate, fail to renew or refuse to continue any franchise relationship 
with a licensed new personal sports mobile dealer, notwithstanding the terms, 
provisions or conditions of any agreement or franchise or the terms or provisions of 
any waiver, without first providing notification of the termination, cancellation, 
nonrenewal or noncontinuance to the new personal sports mobile dealer as follows: in 
accordance with this paragraph.
(1)  Notification under this paragraph must be in writing and must be delivered 
personally or by certified mail to the new personal sports mobile dealer and must 
contain:
(a)  A statement of intention to terminate, cancel, not continue or not renew the 
franchise;
(b)  A statement of the reasons for the termination, cancellation, 
noncontinuance or nonrenewal; and
(c)  The date on which the termination, cancellation, noncontinuance or 
nonrenewal takes effect;.
(2)  The notice required in this paragraph may not be given less than 90 180 days 
prior to the effective date of the termination, cancellation, noncontinuance or 
nonrenewal, except as provided in subparagraph (3); or.
(3)  The notice required in this paragraph may not be given less than 15 days prior 
to the effective date of the termination, cancellation, noncontinuance or 
nonrenewal with respect to any of the following:
(a)  Insolvency of the new personal sports mobile dealer or filing of any 
petition by or against the new personal sports mobile dealer under any 
bankruptcy or receivership law;
(b)  The business operations of the personal sports mobile dealer have been 
abandoned or closed for 14 consecutive business days unless the closing is due 
to an act of God, strike or labor difficulty; or
(c)  Conviction of or plea of nolo contendere of a personal sports mobile dealer 
or one of its principal owners of any Class A, Class B or Class C crime, as 
defined in Title 17‑A, in which a sentence of imprisonment of one year or more 
is imposed under Title 17‑A, sections 1603 and 1604; or
Sec. 6.  10 MRSA §1243, sub-§3, ¶R, as amended by PL 1997, c. 717, §3, is further 
amended by amending the 2nd blocked paragraph to read:
In lieu of any injunctive relief or any other damages, if the manufacturer fails to prove 
there was good cause for the termination, cancellation, noncontinuance or nonrenewal, 
or if the manufacturer fails to prove that it acted in good faith, then the manufacturer 
may pay the new personal sports mobile dealer fair and reasonable compensation for 
the value of the dealership as an ongoing business; and.
Sec. 7.  10 MRSA §1243, sub-§3, ¶R, as amended by PL 1997, c. 717, §3, is further 
amended by enacting a new 3rd blocked paragraph to read:
In any cancellation, termination, nonrenewal or noncontinuance of any franchise 
relationship by a dealer, the dealer has the same rights as when a manufacturer cancels, 
terminates, fails to renew or refuses to continue a franchise relationship; and
Sec. 8.  10 MRSA §1250-F, as amended by PL 2001, c. 246, §2, is further amended 
by amending the section headnote to read:
§1250-F.  Civil remedies; attorney's fees
Sec. 9.  10 MRSA §1250-F, sub-§2 is enacted to read:
2.  Attorney's fees.  When a franchisee or personal sports mobile dealer is seeking 
injunctive or other relief pursuant to subsection 1, the franchisee or dealer is deemed to 
have prevailed for the purposes of the franchisee's or dealer's entitlement to payment of 
attorney's fees pursuant to subsection 1, if, in the same action, a judgment or other final 
order providing equitable relief is entered in the franchisee's or dealer's favor.
SUMMARY
This bill modifies provisions of law governing contractual relationships between 
manufacturers of personal sports mobiles and personal sports mobile dealers as follows. 
1.  It requires that manufacturers allocate new personal sports mobiles to dealers in a 
manner that is fair and equitable for each model of new personal sports mobile. 
2.  It provides that it is prima facie evidence that a determination to terminate a 
contractual relationship with a dealer based on poor sales performance or poor market 
penetration is not made with good cause when prior to the determination the manufacturer 
failed to provide the dealer a fair and adequate supply and mix of new personal sports 
mobiles. 
3.  It clarifies that the sale of new personal sports mobiles does not require an existing 
dealer to enter into a separate agreement with the manufacturer but the manufacturer may 
require the dealer to purchase necessary parts, tools, equipment and promotional materials 
and participate in necessary trainings.
4.  It clarifies what behavior on the part of a manufacturer is considered coercion with 
respect to a dealer and provides a process by which a dealer may protest against any 
modifications to the dealer's franchise or contractual agreement made or proposed by the 
manufacturer through coercion. 
5.  It adds facilities renovation and market area penetration to the devices that a 
manufacturer may not use to lower the price of a personal sports mobile sold to a dealer 
causing the price to be lower than the price offered to any other dealer. 
6.  It requires that a manufacturer must provide written notice to a dealer no less than 
days prior to the effective date of a termination, cancellation, nonrenewal or 
noncontinuance of a franchise agreement instead of only 90 days as required under current 
law. 
7.  It clarifies a dealer's rights when choosing to cancel, terminate, decline to renew or 
refuse to continue a franchise relationship. 
8.  It adds a provision regarding when attorney's fees may be awarded to a dealer in an 
action for civil remedies against a manufacturer for unfair or deceptive acts.