SB 286 — AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO COMMERCE AND TRADE.

Have lengths and interior floor plans that distinguish the new recreational equipmentvehicles or new recreational trailers from other new recreational equipmentvehicles or new recreational trailers with substantially the same decor, equipment, features, price, and weight.weight;

weight.

Belong to a single, distinct classification of new recreational equipmentvehicle typesahavsubstantialor new recreational trailer types having a substantial degree of commonality in the construction of the chassis, frame, and body.body;

and body.

The manufacturer-dealer agreement authorizes a new recreational equipmentvehicle dealer to sell.

(7)(8) (9) “Manufacturer” means a person, firm, corporation, or business entity that engages in the manufacturing of new recreational equipment.vehicles or new recreational trailers.

(8)(9) (10) “Manufacturer-dealer agreement” means a written agreement or contract entered into between a manufacturer and a new recreational equipmentvehicle dealer that fixes the rights and responsibilities of the parties and pursuant to which the new recreational equipmentvehicle dealer sells new recreational equipment.vehicles or new recreational trailers.

(9)SD “New: recreational equipment” means a motorized vessel, ATV, OHV, SSV, cargo trailer, or vessel trailer which has not been titled.

(10)MD “New: recreational equipment dealer” means a person, firm, corporation, or business entity who is engaged in the business of buying, selling, or exchanging new recreational equipment.

(11)ALW a.Page 2 of 13 Released:

“Off-highway04/20/2026 vehicle”05:03 orPM “OHV”(10) (11) “Motor home” means a motor driven off-road vehicle capabledesigned ofto cross-countryprovide traveltemporary withoutliving benefitquarters offor arecreational, roadcamping, or trail,travel onuse. or immediately over land, snow, ice, marsh, swampland or other natural terrain.

“OHV”A includes“motor ahome” multi-wheelmust drivecontain orat low-pressureleast tire4 vehicle,of anthe amphibiousfollowing machine,permanently ainstalled, groundindependent effectlife- air-cushionsupport vehicle,systems orwhich othermeet meansthe ofNational transportationFire derivingProtection motiveAssociation powerstandard fromfor arecreational sourcevehicles: other than muscle or wind.

HDa. :

KLA :cooking facility with an on-board fuel source;

SCDsource. Page 2 of 16 Released:

06/23/2026 12:04 PM b.

“OHV”A doespotable notwater includesupply asystem farmthat vehicleincludes beingat usedleast fora farming,sink, a vehiclefaucet, usedand for military, fire, emergency or law-enforcement purposes, a constructionwater ortank loggingwith vehiclean usedexterior inservice performancesupply ofconnection; its common function, electric bicycle, electric personal assistive mobility device, or a registered aircraft.

(12)connection. “Proprietary part” means any part manufactured by or for, and sold exclusively by, the manufacturer.

(13)c. "Side-by-side vehicle" or "SxS" or "SSV" means a utility vehicle with a minimum of 2 seats positioned side-by-side and enclosed within a roll cage structure.

A toilet with exterior evacuation;

evacuation.

d.

A gas or electric refrigerator;

refrigerator.

e.

A heating or air conditioning system with an on-board power or fuel source separate from the vehicle engine;

or engine.

f.

A 110-125 volt electric power supply.

(11) (12) “New recreational trailer” means a travel trailer, fifth-wheel trailer, or folding camping trailer, motorized vessel, cargo trailer, or vessel trailer which has not been titled.

(12) (13) “New recreational vehicle” means a motorhome, motorized vessel, ATV, OHV, or SSV which has not been titled.

(13) (14) “New recreational vehicle dealer” means a person, firm, corporation, or business entity who is engaged in the business of buying, selling, or exchanging new recreational vehicles or new recreational trailers.

(15) “Off-highway vehicle” or “OHV” means a motor driven off-road vehicle capable of cross-country travel without benefit of a road or trail, on or immediately over land, snow, ice, marsh, swampland or other natural terrain.

It includes a multi-wheel drive or low-pressure tire vehicle, an amphibious machine, a ground effect air-cushion vehicle or other means of transportation deriving motive power from a source other than muscle or wind.

“OHV” does not include a farm vehicle being used for farming, a vehicle used for military, fire, emergency or law-enforcement purposes, a construction or logging vehicle used in performance of its common function, electric bicycle, electric personal assistive mobility device or a registered aircraft.

(14) (16) “Proprietary part” means any part manufactured by or for, and sold exclusively by, the manufacturer.

(17) "Side-by-side vehicle" or "SxS" or "SSV" means a utility vehicle with a minimum of 2 seats positioned side by side and enclosed within a roll cage structure.

Depending on use and application, a side-by-side vehicle may also be called a utility task vehicle, utility terrain vehicle (UTV), recreational off-highway vehicle (ROV), or multipurpose off-highwayoff- highway utility vehicle (MOHUV).

(14)SD “Supplier”: means any person, firm, corporation, or business entity that engages in the manufacturing of new recreational equipment parts, accessories, or components.

(15)MD “Transient: customer” means a customer who is temporarily traveling through a new recreational equipment dealer’s area of sales responsibility.

(16)ALW “Vessel”Page means3 anyof watercraft13 orReleased: artificial contrivance used for transportation on water.

(17)04/20/2026 “Warrantor”05:03 PM 79 (15) (18) “Supplier” means any person, firm, corporation, or business entity,entity including any manufacturer or supplier that providesengages ain written warranty to the consumermanufacturing inof connectionnew withrecreational avehicle pieceor of new recreational equipment,trailer or parts, accessories, or componentscomponents. thereof.

The(16) term(19) “warrantor”“Transient doescustomer” notmeans includea servicecustomer contracts,who mechanicalis ortemporarily othertraveling insurance,through or extended warranties sold for separate consideration by a new recreational equipmentvehicle dealerdealer’s orarea otherof personsales notresponsibility. controlled by a manufacturer.

§(17) 8703.(20) “Travel trailer” means a vehicle, mounted on wheels, designed to provide temporary living quarters for recreational, camping, or travel use.

WrittenA agreements“travel trailer” must be of such size and designatedweight territories.as to not require a special highway movement permit when towed by a motorized vehicle.

(a)(21) A“Vessel” manufacturermeans or distributor may not sell any newwatercraft recreational equipment in this State to or throughartificial acontrivance newused recreationalfor equipmenttransportation dealeron withoutwater. having first entered into a written and signed manufacturer-dealer agreement with a new recreational equipment dealer.

(b)(18) A(22) manufacturer“Warrantor” ormeans distributorany mustperson, designatefirm, thecorporation, areaor ofbusiness salesentity, responsibilityincluding exclusivelyany assignedmanufacturer toor asupplier newthat recreationalprovides equipment dealer in a manufacturer-dealerwritten agreementwarranty andto may not change the areaconsumer orin contractconnection with anothera new recreational equipmentvehicle dealeror fornew therecreational saletrailer, ofor theparts, sameaccessories, line-makeor incomponents thethereof. designated area during the duration of the agreement.

The term “warrantor” does not include service contracts, mechanical or other insurance, or extended warranties sold for separate consideration by a new recreational vehicle dealer or other person not controlled by a manufacturer.

§ 8403.

Written agreements and designated territories [For application of this section, see 79 Del.

Laws, c.

161, § 5].

(a) A manufacturer or distributor may not sell a new recreational vehicle or new recreational trailer in this State to or through a new recreational vehicle dealer without having first entered into a written and signed manufacturer-dealer agreement with a new recreational vehicle dealer.

(b) A manufacturer or distributor shall designate the area of sales responsibility exclusively assigned to a new recreational vehicle dealer in a manufacturer-dealer agreement and may not change the area or contract with another new recreational vehicle dealer for the sale of the same line-make in the designated area during the duration of the agreement, except as provided for in § 6311(b) of this title.

HD(d) :Except as provided in subsection (e) of this section, a new recreational vehicle dealer may not sell a new recreational vehicle or new recreational trailer in this State without having first entered into a manufacturer-dealer agreement with a manufacturer or distributor which has been signed by both parties.

KL(e) :A new recreational vehicle dealer may not be prohibited from selling a particular line-make after a manufacturer-dealer agreement has been terminated or not renewed under § 8404 of this title, if new recreational vehicles or new recreational trailers of the terminated line-make are not returned or required to be returned to the manufacturer.

SCDThe PageSD 3: of 16 Released:

06/23/2026MD 12:04: PM 83 (d) Except as provided in subsection (e) of this section, a new recreational equipment dealer may not sell any new recreational equipment in this State without having first entered into a manufacturer-dealer agreement with a manufacturer or distributor which has been signed by both parties.

(e)ALW APage new4 recreational equipment dealer may not be prohibited from selling a particular line-make after a manufacturer-dealer agreement has been terminated or not renewed under § 8704 of this13 title,Released: if new recreational equipment of the terminated line-make is not returned or required to be returned to the manufacturer.

The04/20/2026 05:03 PM new recreational equipmentvehicle dealer may continue to sell all line makes line-makes that were subject to the manufacturer-dealer agreement and are currently in stock until those line-makes are no longer in the new recreational equipmentvehicle dealer’s inventory.

(f) A manufacturer must specify in writing to each of its new recreational equipmentvehicle dealers licensed in this State the dealer’s obligations for predelivery preparation, manufacturer-sponsored maintenance programs, manufacturer extended warranty, certified pre-owned warranty, manufacturer-issued service contracts, parts exchange programs, recall, and warranted service on its products.

(g) A manufacturer must compensate the new recreational equipmentvehicle dealer for such service required of the dealer by the manufacturer and provide the dealer with a schedule of compensation to be paid such dealer for parts, work, and services in connection therewith, and the time allowance for the performance of such work and service.

§ 8704.8404.

Termination, cancellation, nonrenewal, or alteration of a dealership.dealership [For application of this section, see 79 Del.

(a)Laws, Ac. manufacturer or distributor, directly or through any authorized officer, agent, or employee, may not terminate, cancel, or fail to renew a manufacturer-dealer agreement without good cause.

If161, the§ manufacturer5]. or distributor with good cause terminates, cancels, or fails to renew the manufacturer-dealer agreement, § 8705 of this title does not apply.

(b)(c) AExcept as otherwise provided in this chapter, a manufacturer or distributor hasshall theprovide burdena ofnew showingrecreational goodvehicle causedealer forwith terminating,at canceling,least 120 days prior written notice of termination, cancellation, or failingnonrenewal toof renewthe amanufacturer- manufacturer-dealerdealer agreement withif athe new recreational equipmentvehicle dealer.dealer is being terminated, cancelled, or nonrenewed for good cause.

For purposes of determining whether there is good cause for the proposed action, any of the following factors may be considered:

(1) The extent of the affected new recreational equipment dealer’s penetration in the area of sales responsibility.

(2) The nature and extent of the new recreational equipment dealer’s investment in its business.

(3) The adequacy of the new recreational equipment dealer’s service facilities, equipment, parts, supplies, and personnel.

(4) The effect of the proposed action on the community.

HD :

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06/23/2026 12:04 PM (5) The extent and quality of the new recreational equipment dealer’s service under new recreational equipment warranties.

(6) The new recreational equipment dealer’s failure to follow agreed-upon procedures or standards related to the overall operation of the dealership.

(7) The new recreational equipment dealer’s performance under the terms of its manufacturer-dealer agreement.

(c) Except as otherwise provided in this chapter, a manufacturer or distributor shall provide a new recreational equipment dealer with at least 120 days prior written notice of termination, cancellation, or nonrenewal of the manufacturer-dealer agreement if the new recreational equipment dealer is being terminated, cancelled, or nonrenewed for good cause.

(1) The notice must state all reasons for the proposed termination, cancellation, or nonrenewal and must further state that if, within 30 days following receipt of the notice, the new recreational equipment dealer provides to the manufacturer or distributor a written notice of intent to cure all claimed deficiencies, the new recreational equipment dealer will then be entitled to the full 120-day notice period, commencing from the new recreational equipment dealer’s receipt of the manufacturer’s or distributor’s original notice to rectify the deficiencies.

If the deficiencies are rectified within the 120-day period, the manufacturer’s or distributor’s notice is voided.

If the new recreational equipment dealer fails to provide the notice of intent to cure the deficiencies in the prescribed 30-day time period, the termination, cancellation, or nonrenewal takes effect 30 days after the new recreational equipment dealer’s receipt of the manufacturer’s or distributor’s original notice.

A new recreational equipmentvehicle dealer being convicted of, or entering a plea of nolo contendere to, a felony.felony;

felony.

The abandonment or closing of the business operations of the new recreational equipmentvehicle dealer for 10 consecutive business days unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the new recreational equipmentvehicle dealer has no control.control;

control.

A significant misrepresentation by a new recreational equipmentvehicle dealer that materially affects the business relationship between the new recreational equipmentvehicle dealer and the manufacturer or distributor.distributor;

distributor.

A suspension or revocation of a new recreational equipmentvehicle dealer’s license, or refusal to renew the new recreational equipmentvehicle dealer’s license, by the Division of Motor Vehicles.Vehicles;

HDVehicles. :

KLe. :

SCDA Pagematerial 5violation of 16this Released:chapter which the new recreational vehicle dealer does not cure within 30 days after written notice by the manufacturer or distributor;

06/23/2026or 12:04distributor, PMf. e.

A materialdeclaration violationby ofa this chapter which the new recreational equipmentvehicle dealer doesof notbankruptcy, cureinsolvency, withinor 30the daysoccurrence afterof writtenan noticeassignment byfor the manufacturerbenefit of creditors or distributor.bankruptcy;

f.bankruptcy.

ASD declaration: by a new recreational equipment dealer of bankruptcy, insolvency, or the occurrofce an assignment for the benefit of creditors or bankruptcy.

(d)MD A: new recreational equipment dealer may terminate, cancel, or not renew its manufacturer-dealer agreement with a manufacturer or distributor with or without good cause by giving 30-days written notice.

InALW thePage case5 of a13 newReleased: recreational equipment dealer terminating, cancelling, or failing to renew a manufacturer-dealer agreement for good cause, the notice must state all the reasons for the proposed termination, cancellation, or nonrenewal, and must further state that if, within 30 days following receipt of the notice, the manufacturer or distributor provides to the new recreational equipment dealer a written notice of intent to cure all claimed deficiencies, the manufacturer or distributor will then be entitled to a 90- day notice period commencing from the manufacturer’s receipt of the new recreational equipment dealer’s original notice.

If04/20/2026 the05:03 deficienciesPM are§ rectified8405. within the 90-day notice period, the new recreational equipment dealer’s notice is voided.

IfRepurchase the manufacturer or distributor fails to provide the notice of intentinventory to[For cureapplication the deficiencies in the prescribed 30-day time period, the termination, cancellation, or nonrenewal takes effect 30 days after the manufacturer’s or distributor’s receipt of thethis newsection, recreationalsee equipment79 dealer’sDel. original notice, unless the parties agree otherwise in writing.

(e)Laws, Ifc. the new recreational equipment dealer terminates, cancels or fails to renew a manufacturer-dealer agreement without good cause, the provisions of § 8705 of this title do not apply.

If161, the§ new5]. recreational equipment dealer terminates, cancels, or fails to renew the manufacturer-dealer agreement with good cause, § 8705 of this title applies.

The(a) If a new recreational equipmentvehicle dealer hasterminates, cancels, or fails to renew a manufacturer-dealer agreement for good cause as defined in § 8404(e) of this title and the burdenmanufacturer fails to cure the claimed deficiencies as provided in § 8404(d) of showingthis goodtitle, cause.at the election of the new recreational vehicle dealer and within 45 days after termination, cancellation, or nonrenewal, the manufacturer shall, repurchase:

Any(1) ofAll Repurchase all new, untitled recreational vehicles and recreational trailers that were acquired from the followingmanufacturer itemsor aredistributor consideredwithin “good12 cause”months forbefore athe proposedeffective date of the notice of termination, cancellation, or nonrenewal actionthat byhave not been used, except for demonstration purposes, and that have not been altered or damaged, at 100% of the net invoice cost, including transportation, less applicable rebates and discounts to the new recreational equipmentvehicle dealer:dealer.

(1)If Aany manufacturerof orthe distributorvehicles beingrepurchased convictedpursuant of,to orthis enteringparagraph aare pleadamaged, ofbut nolodo contenderenot to,trigger a felony.consumer disclosure requirement, the amount due the new recreational vehicle dealer must be reduced by the cost to repair the vehicle.

(2)Damage Theprior businessto operationsdelivery ofto athe manufacturernew orrecreational distributorvehicle havedealer beenthat abandonedis ordisclosed closedat for 10 consecutive business days, unless the closingtime is due to an act of God,delivery strike,will labornot difficulty,disqualify orrepurchase otherunder causethis overprovision. which the manufacturer has no control.

(3)(2) AAll significantRepurchase misrepresentationall byundamaged accessories and proprietary parts sold to a manufacturernew recreational vehicle dealer for resale within the 12 months prior to termination, cancellation, or distributornonrenewal, thatif materiallyaccompanied affectsby the businessoriginal relationshipinvoice, betweenat 105% of the original net price paid to the manufacturer andor distributor to compensate the new recreational equipmentvehicle dealer.dealer for handling, packing, and shipping the parts;

(4)and A(3) materialAny violationRepurchase any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery at 100% of thisthe chapternew whichrecreational vehicle dealer’s net cost plus freight, destination, delivery, and distribution charges and sales taxes, if any, if the manufactureritems orwere distributorpurchased doesby notthe curenew recreational vehicle dealer within 305 daysyears afterbefore writtentermination, noticecancellation, byor nonrenewal upon the manufacturer’s or distributor’s request, and can no longer be used in the normal course of the new recreational equipmentvehicle dealer.dealer’s ongoing business.

(5) A declaration by a manufacturer or distributor of bankruptcy, insolvency, or the occurrence of an assignment for the benefit of creditors or bankruptcy.

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06/23/2026 12:04 PM § 8705.

Repurchase of inventory.

(a) If a new recreational equipment dealer terminates, cancels, or fails to renew a manufacturer-dealer agreement for good cause as defined in § 8704(e) of this title and the manufacturer fails to cure the claimed deficiencies as provided in § 8704(d) of this title, at the election of the new recreational equipment dealer and within 45 days after termination, cancellation, or nonrenewal, the manufacturer must do all of the following:

(1) Repurchase all new, untitled recreational equipment that was acquired from the manufacturer or distributor within 12 months before the effective date of the notice of termination, cancellation, or nonrenewal that has not been used, except for demonstration purposes, and that has not been altered or damaged, at 100% of the net invoice cost, including transportation, less applicable rebates and discounts to the new recreational equipment dealer.

If any of the equipment repurchased pursuant to this paragraph is damaged, but does not trigger a consumer disclosure requirement, the amount due the new recreational equipment dealer must be reduced by the cost to repair the equipment.

Damage prior to delivery to the new recreational equipment dealer that is disclosed at the time of delivery will not disqualify repurchase under this provision.

(2) Repurchase all undamaged accessories and proprietary parts sold to a new recreational equipment dealer for resale within the 12 months prior to termination, cancellation, or nonrenewal, if accompanied by the original invoice, at 105% of the original net price paid to the manufacturer or distributor to compensate the new recreational equipment dealer for handling, packing, and shipping the parts.

(3) Repurchase any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery at 100% of the new recreational equipment dealer’s net cost plus freight, destination, delivery, and distribution charges and sales taxes, if any, if the items were purchased by the new recreational equipment dealer within 5 years before termination, cancellation, or nonrenewal upon the manufacturer’s or distributor’s request, and can no longer be used in the normal course of the new recreational equipment dealer’s ongoing business.

(b)§ The8406. manufacturer or distributor must pay the new recreational equipment dealer within 30 days of receipt of the items returned pursuant to this section.

§ 8706.

family succession.succession [For application of this section, see 79 Del.

(a)Laws, Ifc. a new recreational equipment dealer desires to make a change in ownership by the sale of the business assets, stock transfer, or otherwise, the new recreational equipment dealer shall give the manufacturer or distributor written notice HD :

KL161, :§ 5].

SCD(a) PageIf 7a new recreational vehicle dealer desires to make a change in ownership by the sale of 16the Released:business assets, stock transfer, or otherwise, the new recreational vehicle dealer shall give the manufacturer or distributor written notice at least 15 business days before the closing, along with all supporting documentation that may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made.

06/23/2026In 12:04 PM at least 15 business days before the closing,absence alongof witha allbreach supporting documentation that may be reasonably required by the manufacturerselling orSD distributor: to determine if an objection to the sale may be made.

InMD the: absence of a breach by the selling new recreational equipment dealer of its manufacturer-dealer agreement or a provision of this chapter, the manufacturer or distributor may not object to the proposed change in ownership unless any of the following apply to the prospective transferee:

(1)ALW HasPage previously6 been terminated by the manufacturer for breach of its13 manufacturer-dealerReleased: agreement.

(2)04/20/2026 Has05:03 beenPM convictednew recreational vehicle dealer of aits felonymanufacturer-dealer agreement or anya crimeprovision of fraud,this deceit,chapter, the manufacturer or moraldistributor turpitude.may not object to the proposed change in ownership unless the prospective transferee:

(3)(1) LacksHas apreviously licensebeen requiredterminated by law.the manufacturer for breach of its manufacturer-dealer agreement;

(4)agreement. Does not have an active line of credit sufficient to purchase a manufacturer’s or distributor’s product.

(5)(2) InHas thebeen lastconvicted 10 years, has undergone bankruptcy, insolvency, a general assignment for the benefit of creditors, or the appointment of a receiver,felony trustee, or conservatorany tocrime take possession of thefraud, transferee’sdeceit, business or property.moral turpitude;

(b)turpitude. If the manufacturer or distributor objects to a proposed change of ownership pursuant to subsection (a) of this section, the manufacturer or distributor shall give written notice of its reasons to the new recreational equipment dealer within 10 business days after receipt of the new recreational equipment dealer’s notification and all supporting documentation.

The(3) manufacturerLacks ora distributorlicense hasrequired theby burdenlaw; of proof with regard to its objection.

Iflaw. the manufacturer or distributor does not give timely notice of its objection, the change of ownership is deemed approved.

(c)(4) ItDoes isnot unlawfulhave foran aactive manufacturerline orof distributorcredit tosufficient fail to providepurchase a newmanufacturer’s recreational equipment dealer with an opportunity to designate, in writing, a family member as a successor to the dealership in the event of the death, incapacity, or retirementdistributor’s ofproduct; the new recreational equipment dealer.

Itor isproduct, unlawful(5) toHas preventundergone orin refuse to honor the successionlast to10 ayears dealershipbankruptcy, byinsolvency, a familygeneral memberassignment offor the deceased,benefit incapacitated,of orcreditors, retired new recreational equipment dealer, unless the manufacturer or distributor has provided to the newappointment recreational equipment dealer written notice of itsa objectionsreceiver, withintrustee, 10or daysconservator afterto receipttake ofpossession the new recreational equipment dealer’s modification of the newtransferee’s recreationalbusiness equipmentor dealer’sproperty. succession plan.

In(c) theIt absenceis ofunlawful for a breachmanufacturer ofor thedistributor manufacturer-dealerto agreement,fail theto manufacturerprovide ora distributornew mayrecreational objectvehicle dealer with an opportunity to designate, in writing, a family member as a successor to the successiondealership onlyin ifthe oneevent of the followingdeath, applies:incapacity, or retirement of the new recreational vehicle dealer.

(1)It Convictionis ofunlawful to prevent or refuse to honor the successorsuccession ofto a felonydealership orby anya crimefamily member of fraud,the deceit,deceased, incapacitated, or moralretired turpitude.new recreational vehicle dealer, unless the manufacturer or distributor has provided to the new recreational vehicle dealer written notice of its objections within 10 days after receipt of the new recreational vehicle dealer’s modification of the new recreational vehicle dealer’s succession plan.

(2)In Bankruptcythe orabsence insolvency of thea successorbreach duringof the pastmanufacturer-dealer 10agreement, years, (3) Prior termination by the manufacturer or distributor ofmay object to the successorsuccession for breachthe offollowing areasons manufacturer-dealeronly: agreement.

HD(1) :Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude;

KLturpitude. :

SCD(2) PageBankruptcy 8or insolvency of 16the Released:successor during the past 10 years;

06/23/2026years, 12:04(3) PMPrior (4)termination Theby lackthe ofmanufacturer anor activedistributor line of credit for the successor sufficientfor tobreach purchaseof thea manufacturer’smanufacturer- ordealer distributor’sagreement; product.

agreement.

(4) The lack of an active line of credit for the successor sufficient to purchase the manufacturer’s or distributor’s product;

or product.

(d)§ A8407. manufacturer or distributor has the burden of proof regarding its objection under subsection (c) of this section.

However, a family member may not succeed to a dealership if the succession involves, without the manufacturer’s or distributor’s consent, a relocation of the business or an alteration of the terms and conditions of the manufacturer-dealer agreement.

§ 8707.

sales incentives.incentives [For application of this section, see 79 Del.

(a)Laws, Ac. warrantor must do all of the following:

(1)161, Specify§ in5]. writing to each of its new recreational equipment dealers all new recreational equipment dealer obligations, if any, for preparation, delivery, and warranty service on its products.

(2)(a) CompensateA thewarrantor newshall: recreational equipment dealer for performing warranty service required of the new recreational equipment dealer by the warrantor.

(3)(1) ProvideSpecify thein newwriting recreationalto equipmenteach dealerof withits anew schedulerecreational ofvehicle compensationdealers toall benew paidrecreational andvehicle thedealer timeobligations, allowancesif any, for thepreparation, performancedelivery, ofand anywarranty workservice andon service.its products;

SD :

MD :

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04/20/2026 05:03 PM (2) Compensate the new recreational vehicle dealer for performing warranty service required of the new recreational vehicle dealer by the warrantor;

and (3) Provide the new recreational vehicle dealer with a schedule of compensation to be paid and the time allowances for the performance of any work and service.

In the determination of what constitutes reasonable compensation under this section, the principal factors to be given consideration are the actual wage rates being paid by the new recreational equipmentvehicle dealerdealer, and the actual retail labor rate being charged by the new recreational equipmentvehicle dealers in the community in which the new recreational equipmentvehicle dealer is doing business.

The compensation of a new recreational equipmentvehicle dealer for warranty labor may not be less than the lowest retail labor rates actually charged by the new recreational equipmentvehicle dealer for like nonwarranty labor, as long as such rates are reasonable.

(c) A warrantor shall reimburse a new recreational vehicle dealer for warranty parts at With respect to parts reimbursement, reasonable compensation may not be less than the rate charged by the dealer for like services to nonwarranty customers for nonwarranty partsparts, and service, andor may not be less than actual wholesale cost plus a minimum 30% 40% handling charge and the cost, if any, of freight to return warranty parts to the warrantor.

(d) Warranty audits of new recreational equipmentvehicle dealer records may be conducted by the warrantor on a reasonable basis, and new recreational equipmentvehicle dealer claims for warranty compensation may not be denied except for HDcause, :such as performance of nonwarranty repairs, material noncompliance with the warrantor’s published policies and procedures, lack of material documentation, fraud, or misrepresentation.

KL(e) :A new recreational vehicle dealer shall submit warranty claims within 30 180 days after completing work.

SCD(f) PageA 9new recreational vehicle dealer shall immediately notify a warrantor, verbally or in writing, if the new recreational vehicle dealer is unable to perform any warranty repairs within 10 180 days of 16receipt Released:of verbal or written complaints from a consumer.

06/23/2026(g) 12:04(1) PMA cause,warrantor suchshall asdisapprove performancewarranty ofclaims nonwarrantyin repairs,writing materialwithin noncompliance30 withdays after the warrantor’swork publishedis policiescompleted and procedures,submitted lackby ofthe materialnew documentation,recreational fraud,vehicle ordealer misrepresentation.in the manner and form prescribed by the warrantor.

(e) A new recreational equipment dealer must submit warranty claims within 180 days after completing work.

(f) A new recreational equipment dealer must immediately notify a warrantor, verbally or in writing, if the new recreational equipment dealer is unable to perform any warranty repairs within 180 days of receipt of verbal or written complaints from a consumer.

(g) (1) A warrantor must disapprove warranty claims in writing within 30 days after the work is completed and submitted by the new recreational equipment dealer in the manner and form prescribed by the warrantor.

(2) All claims made by new recreational equipmentvehicle dealers pursuant to this section for compensation for labor and parts must be paid within 30 days following their approval.

A warrantor retains the right to audit those claimsSD and: to charge back the dealer for claims due to fraud, work done unnecessarily, or work not properly performed for a period of 180 days following payment.

(3)WithinMD 30: days of receiving the warrantor's notice of denial of the dealer's parts or labor submission pursuant to this subsection, a new recreational equipment dealer may file with the Public Service Commission a protest to the warrantor's denial.

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04/20/2026 05:03 PM claims and to charge back the dealer for claims due to fraud, work done unnecessarily, or work not properly performed for a period of 180 days following payment.

(3) Within 30 days of receiving the warrantor's notice of denial of the dealer's parts or labor submission pursuant to this subsection, a new recreational vehicle dealer may file with the Public Service Commission a protest to the warrantor's denial.

(h) It is a violation of this chapter for a warrantor toto: do any of the following:

(1) Fail to perform any of its warranty obligations with respect to its warranted products.products;

(2)products. Fail to include, in written notices of factory campaigns to new recreational equipment owners and new recreational equipment dealers, the expected date by which necessary parts and equipment, including tires and chassis or chassis parts, will be available to new recreational equipment dealers to perform the campaign work.

A(2) warrantorFail mayto shipinclude, partsin towritten anotices of factory campaigns to new recreational equipmentvehicle dealeror tonew effectrecreational thetrailer campaignowners work,and and,new ifrecreational thevehicle partsdealers, arethe inexpected excessdate ofby thewhich newnecessary recreationalparts equipmentand dealer’sequipment, requirements,including thetires newand recreationalchassis equipmentor dealerchassis mayparts, returnwill unusedbe partsavailable to thenew warrantorrecreational forvehicle creditdealers afterto completionperform of the campaign.campaign work.

HDA :warrantor may ship parts to a new recreational vehicle dealer to effect the campaign work, and, if the parts are in excess of the new recreational vehicle dealer’s requirements, the new recreational vehicle dealer may return unused parts to the warrantor for credit after completion of the campaign;

KLcampaign. :

SCD(3) PageFail 10to compensate any of 16its Released:new recreational vehicle dealers for authorized repairs effected by the new recreational vehicle dealer of merchandise damaged in manufacture or transit to the new recreational vehicle dealer, if the carrier is selected by the warrantor, factory branch, distributor, or distributor branch;

06/23/2026 12:04 PM (3) Fail to compensate any of its new recreational equipment dealers for authorized repairs effected by the new recreational equipment dealer of merchandise damaged in manufacture or transit to the new recreational equipment dealer, if the carrier is selected by the warrantor, factory branch, distributor, or distributor branch.

(4) Fail to compensate any of its new recreational equipmentvehicle dealers in accordance with the schedule of compensation provided to the new recreational equipmentvehicle dealer pursuant to this section, if performed in a timely and competent manner.manner;

(5)manner. Intentionally misrepresent in any way to purchasers of new recreational equipment that warranties with respect to the manufacture, performance, or design of the equipment are made by the new recreational equipment dealer as warrantor or cowarrantor.

(6)(5) RequireIntentionally amisrepresent in any way to purchasers of new recreational equipmentvehicles dealeror tonew makerecreational trailers that warranties with respect to customersthe inmanufacture, anyperformance, manneror relateddesign toof the manufacturevehicle ofare made by the new recreational equipment.vehicle dealer as warrantor or cowarrantor;

(i)or Itcowarrantor. is a violation of this chapter for a new recreational equipment dealer to do any of the following:

(1)(6) FailRequire a new recreational vehicle dealer to performmake predeliverywarranties inspectionto functions,customers asin specifiedany bymanner related to the warrantor,manufacture inof athe competentnew andrecreational timelyvehicle manner.or new recreational trailer.

(2)(i) FailIt tois performa warrantyviolation serviceof workthis authorizedchapter byfor the warrantor in a competentnew andrecreational timelyvehicle mannerdealer onto: any transient customer’s equipment of the same line-make.

(3)SD Fail: to accurately document the time spent completing each repair, the total number of repair attempts conducted on a single unit, and the number of repair attempts for the same repair conducted on a single piece of equipment.

(4)MD Fail: to notify the warrantor within 10 days of a second repair attempt which impairs the use, value, or safety of the equipment, (5) Fail to maintain written records, including a consumer’s signature, regarding the amount of time a unit is stored for the consumer’s convenience during a repair.

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04/20/2026 05:03 PM (1) Fail to perform predelivery inspection functions, as specified by the warrantor, in a competent and timely manner;

manner, (2) Fail to perform warranty service work authorized by the warrantor in a competent and timely manner on any transient customer’s vehicle of the same line-make;

line-make.

(3) Fail to accurately document the time spent completing each repair, the total number of repair attempts conducted on a single unit, and the number of repair attempts for the same repair conducted on a single vehicle;

vehicle.

(4) Fail to notify the warrantor within 10 days of a second repair attempt which impairs the use, value or safety of the vehicle;

vehicle, (5) Fail to maintain written records, including a consumer’s signature, regarding the amount of time a unit is stored for the consumer’s convenience during a repair;

or, repair.

If a manufacturer furnishes a part orof a component to a dealer at no cost or a reduced cost to use in performing repairs under a HDrecall, :campaign service action, or warranty repair, the manufacturer must compensate the dealer for the part or component in the same manner as warranty parts compensation under paragraph (a)(1) of this section, less the dealer cost for the part or component as listed in the manufacturer’s price schedule.

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06/23/2026 12:04 PM recall, campaign service action, or warranty repair, the manufacturer must compensate the dealer for the part or component in the same manner as warranty parts compensation under paragraph (a)(1) of this section, less the dealer cost for the part or component as listed in the manufacturer’s price schedule.

The new schedule of compensation takeswill take effect within 30 days after the initial submission to the warrantor and isshall be presumed to be fair and reasonable.

The 30-30-day day time frame in which the warrantor mustshall make the schedule of compensation effective commencesSD following: receipt from the dealer of any reasonably requested supporting information.

NoMD warrantor: may require a recreational equipment dealer to establish a schedule of compensation by requiring supportive information that is unduly burdensome or time consuming to provide, including part-by-part or transaction-by-transaction calculations.

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04/20/2026 05:03 PM commences following receipt from the dealer of any reasonably requested supporting information.

No warrantor may require a recreational vehicle dealer to establish a schedule of compensation by requiring supportive information that is unduly burdensome or time consuming to provide, including part-by-part or transaction-by- transaction calculations.

(l) Any audit for sales incentives, service incentives, rebates,rebates or other forms of incentive compensation may only be conducted for a period of 180 days following the date of the termination of the sales incentives program, service incentives program, rebate program,program or other form of incentive compensation program.

These limitations doshall not applybe in effect in the case of fraudulent claims.

§ 8708.8409.

Indemnification.Inspection and rejection by the dealer [For application of this section, see 79 Del.

NotwithstandingLaws, thec. terms of any manufacturer-dealer agreement, it is a violation of this chapter for:

(1)161, A§ warrantor5]. to fail to indemnify and hold harmless its new recreational equipment dealer against any losses or damages to the extent that the losses or damages are caused by the negligence or willful misconduct of the warrantor.

A(a) If a new recreational equipmentvehicle dealeror maynew notrecreational betrailer deniedis indemnificationdamaged forprior failingto transit to discover,a disclose,new orrecreational remedyvehicle adealer defector is damaged in transit to the designnew recreational vehicle dealer when the carrier or manufacturingmeans of transportation has been selected by the manufacturer or distributor, the new recreational equipment.vehicle dealer shall notify the manufacturer or distributor of the damage within the timeframe specified in the manufacturer-dealer agreement and:

A(1) newShall recreationalrequest equipmentfrom dealerthe maymanufacturer beor denieddistributor indemnificationauthorization ifto replace the newcomponents, recreationalparts, equipmentand dealeraccessories failsdamaged or to remedyotherwise acorrect knownthe anddamage; announced defect HD :

KLor :damage.

SCD(2) PageShall 12reject the vehicle within the timeframe set forth in subsection (d) of 16this Released:section.

06/23/2026§ 12:048410. PM in accordance with the written instructions of a warrantor for whom the new recreational equipment dealer is obligated to perform warranty service.

ACoercion of new recreational equipmentvehicle dealer shallprohibited provide[For toapplication a warrantor a copy of any pending lawsuit in which allegations are made that are covered by the provisions of this paragraphsection, withinsee 1079 daysDel. after receiving such suit.

NotwithstandingLaws, anythingc. to the contrary, this paragraph continues to apply even after the new recreational equipment is titled.

(2)161, A§ new5]. recreational equipment dealer to fail to indemnify and hold harmless its warrantor against any losses or damages to the extent that the losses or damages are caused by the negligence or willful misconduct of the new recreational equipment dealer.

(a) A warrantormanufacturer shallor providedistributor tomay anot newcoerce recreational equipment dealer a copy of any pending lawsuit or similarattempt proceedingto incoerce whicha allegationsnew arerecreational madevehicle thatdealer cometo: within the provisions of this paragraph within 10 days after receiving such suit.

Notwithstanding(1) anythingPurchase toa theproduct contrary,that this paragraph continues to apply even after the new recreational equipmentvehicle isdealer titled.did not order;

§order. 8709.

Inspection(2) andEnter rejectioninto byan agreement with the dealer.manufacturer or distributor;

(a) If a piece of new recreational equipment is damaged prior to transit to a new recreational equipment dealer or isdistributor. damaged in transit to the new recreational equipment dealer when the carrier or means of transportation has been selected by the manufacturer or distributor, the new recreational equipment dealer shall notify the manufacturer or distributor of the damage within the timeframe specified in the manufacturer-dealer agreement and must do one of the following:

(1)(3) RequestEnter frominto an agreement that requires the manufacturernew orrecreational distributorvehicle authorizationdealer to replacesubmit theits components,disputes parts,to andbinding accessoriesarbitration damagedor otherwise waive rights or toresponsibilities otherwiseprovided correctunder thethis damage.chapter.

(2)§ Reject8413. the equipment within the timeframe set forth in subsection (d) of this section.

(b) If a manufacturer or distributor refuses or fails to authorize repair of damage pursuant to subsection (a) of this section within 10 days after receipt of notification, or if the new recreational equipment dealer rejects the new recreational equipment because of damage, ownership of the new recreational equipment reverts to the manufacturer or distributor.

(c) A new recreational equipment dealer shall exercise due care while the damaged new recreational equipment in the new recreational equipment dealer’s custody, but the new recreational equipment dealer has no other obligations, financial or otherwise, with respect to the equipment.

(d) The timeframe for inspection and rejection of a new recreational equipment by a new recreational equipment dealer must be part of the manufacturer-dealer agreement and may not be less than 2 business days after the physical delivery of the equipment.

(e) Any new recreational equipment that has, at the time of delivery to a new recreational equipment dealer, an unreasonable amount of miles or hours on its odometer or meter as determined by the new recreational equipment dealer, HD :

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06/23/2026 12:04 PM may be subject to rejection by the new recreational equipment dealer and reversion of the equipment to the manufacturer or distributor.

In no instance may a new recreational equipment dealer deem an amount less than the distance between the new recreational equipment dealer and the manufacturer’s factory or a distributor’s point of distribution, plus 100 miles, as unreasonable.

§ 8710.

Coercion of new recreational equipment dealer prohibited.

(a) A manufacturer or distributor may not coerce or attempt to coerce a new recreational equipment dealer to do any of the following:

(1) Purchase a product that the new recreational equipment dealer did not order.

(2) Enter into an agreement with the manufacturer or distributor.

(3) Enter into an agreement that requires the new recreational equipment dealer to submit its disputes to binding arbitration or otherwise waive rights or responsibilities provided under this chapter.

(b) As used in this section, the term “coerce” includes threatening to terminate, cancel, or not renew a manufacturer-dealer agreement without good cause;

or threatening to withhold product lines that the new recreational equipment dealer is entitled to purchase pursuant to the manufacturer-dealer agreement;

or threatening to delay product delivery as an inducement to amending the manufacturer-dealer agreement.

§ 8711.

Mediation.

(a) A new recreational equipment dealer, manufacturer, distributor, or warrantor injured by another party’s violation of this chapter may bring a civil action to recover actual damages.

The court may award reasonable attorneys’ fees and costs to the prevailing party in such an action.

Venue for any civil action authorized by this section is in the county in which the new recreational equipment dealer’s business is located.

In an action involving more than 1 new recreational equipment dealer, venue may be in any county in which any new recreational equipment dealer that is a party to the action is located.

(b) Prior to bringing suit under this chapter, the plaintiff must serve upon the offending party a written demand for mediation.

Mediation must take place in accordance with this section;

Chapter 77 of Title 6 does not apply.

(1) In the case of a manufacturer, distributor, or new recreational equipment dealer, a demand for mediation must be served upon the other party via certified mail at the address stated within the manufacturer-dealer agreement between the parties.

In the case of a different warrantor, the notice must be sent via certified mail to the address identified in the warrantor’s warranty, with a copy to the manufacturer or distributor.

(2) A demand for mediation must contain a brief statement of the dispute and the relief sought by the party filing the demand.

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06/23/2026 12:04 PM (3) Within 20 days after the date on which a demand for mediation is served, the parties must mutually select an independent certified mediator and meet with that mediator for the purpose of attempting to resolve the dispute.

The meeting place must be in this State in a location selected by the mediator.

The mediator may extend the date of the meeting for good cause shown by either party or upon stipulation by both parties.

(4) The service of a demand for mediation under this section tolls the time for the filing of a complaint, petition, protest, or other action under this chapter until representatives of both parties have met with a mutually selected mediator for the purpose of attempting to resolve the dispute.

If a complaint, petition, protest, or other action is filed before meeting with the mediator, the court shall enter an order suspending the proceeding or action until mediation has occurred, and, upon written stipulation by all parties to the proceeding or action that they wish to continue to mediate under this section, the court shall enter an order suspending the proceeding or action for as long a period as the court considers appropriate.

(5) The parties to the mediation shall bear their own costs for attorneys’ fees and divide equally the cost of the mediator.

(c) In addition to the remedies provided in this section and notwithstanding the existence of any additional remedy at law, a manufacturer, distributor, warrantor, or new recreational equipment dealer may make application to a court of competent jurisdiction for the grant, upon a hearing and for cause shown, of a temporary or permanent injunction, or both, restraining any person from acting as a new recreational equipment dealer without being properly licensed, from violating or continuing to violate any of the provisions of this chapter, or from failing or refusing to comply with the requirements of this chapter.

An injunction must be issued without bond.

A single act in violation of the provisions of this chapter is sufficient for a court to authorize the issuance of an injunction.

§ 8712.

Regulations.

The Division of Motor Vehicles has the authority to promulgate and adopt rules and regulations necessary to carry out the provisions of this chapter.

§ 8713.

(a) In order to prevent injury or harm to all or a substantial number of its members or to the franchise distribution system of new recreational equipmentvehicles within this State, any association that has as members at least 4 recreational equipmentvehicle dealers,SD substantially: all of whom are new recreational equipment dealers located within the State, and that represents the collective interests of its members, has standing to file a petition or a civil action against a manufacturer regulated under this chapter to enforce the provisions of this chapter in any court of competent jurisdiction for itself, or on behalf of any or all of its members, seeking declaratory and injunctive relief.

AnyMD such association also has standing to HD :

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SCD04/20/2026 Page05:03 15PM dealers, substantially all of 16whom Released:are new recreational vehicle dealers located within the State, and that represents the collective interests of its members, has standing to file a petition or a civil action against a manufacturer regulated under this chapter to enforce the provisions of this chapter in any court of competent jurisdiction for itself, or on behalf of any or all of its members, seeking declaratory and injunctive relief.

06/23/2026Any 12:04such PMassociation also has standing to intervene as a party in an action against a manufacturer regulated under this chapter previously filed by an individual member or members of the association to enforce the provisions of this chapter.

(b) An action brought pursuant to this section may seek a determination of whether 1 or more manufacturers, factory branches, distributors, or distributor branches doing business in this State have violated any of the provisions of this chapter, or for the determination of any rights created or defined by this chapter, so long as the association alleges an injury to the collective interest of its members cognizable under this section.”.section.

SYNOPSIS This AmendmentAct clarifies portions of Chapter 84 of Title 21 of the Delaware Code pertaining to Senatenew Billrecreational No.vehicle, vessel, or new recreational trailer manufacturer-dealer agreements.

286The movesAct allincludes of the contentfollowing ofprovisions: Senate Bill No.

286Definitions. into a new chapter of Title 21, rather than amending existing Chapter 84.

ChapterThe 84Act amends § 8401 of Title 21,21 dealingand withclarifies newthe definitions of "new recreational vehiclestrailer" and trailers"new willrecreational notvehicle" changeand underadds thisdefinitions amendedof version"all-terrain ofvehicle," Senate"off-highway Billvehicle," No."side-by-side vehicle," and "vessel." Written agreements.

286.Manufacturers are required to specify in writing to their new recreational vehicle dealers licensed in the state the dealers' obligations for pre-delivery preparation, manufacturer-sponsored maintenance programs, manufacturer extended warranty, certified pre-owned warranty, manufacturer-issued service contracts, parts exchange programs, recall, and warranted service on the dealers' products.

TheIn newaddition, Chaptermanufacturers 87must createdcompensate bytheir thisnew amendment applies to “new recreational equipment,”vehicle whichdealers isfor definedthese asservices aand “motorizedprovide vessel,the ATV,dealers OHV,with SSV, cargo trailer, or vessel trailer which has not been titled.” Chapter 87 is a copyschedule of Chaptercompensation 84 and includesthe alltime ofallowances for the changesperformance madeof by the originalwork Senateand Billservices. No.

286.Termination, cancellation, nonrenewal, or alteration of a dealership.

HDIn :the event a new recreational vehicle dealer terminates, cancels, or fails to renew a manufacturer-dealer agreement for good cause, and the manufacturer fails to cure the deficiencies, at the new recreational vehicle dealer's election and within 45 days of the termination, cancellation, or nonrenewal, the manufacturer must, in addition to its existing obligations, compensate the dealer for any transporting, handling, packing, storing, and loading of any returned parts, tools, and equipment.

KLWarranty :obligations.

SCDWith Pagerespect 16to parts reimbursement, reasonable compensation to a new recreational vehicle dealer may not be less than the rate charged by the dealer for like services to nonwarranty customers for nonwarranty parts, service, or actual wholesale cost, plus a minimum 40% handling and the cost of 16any Released:freight to return the warranty parts to the warrantor.

06/23/2026A 12:04new PMrecreational 0281530229vehicle dealer must notify the warrantor within 180 days if it is unable to perform any warranty repairs.

In addition, a schedule of compensation for warranty services must include reasonable compensation for diagnostic work, parts, repair service, and labor.

Time allowances for the diagnosis and performance of warranty work and services must be reasonable and adequate.

With respect to manufacturer-sponsored maintenance programs, manufacturer extended warranty, certified pre-owned warranty, manufacturer-issued service contracts, parts exchange programs, recall and warranty parts, and labor reimbursement, reasonable compensation may not be less than the rate charged by the dealer for like service to non-warranty customers for nonwarranty parts, services, and repairs.

If a manufacturer furnishes a part of SD :

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04/20/2026 05:03 PM a component to a dealer at no or a reduced cost, the manufacturer must compensate the dealer in the same manner as warranty parts compensation, less the dealer cost for the part or component as listed in the manufacturer's price schedule.

Association standing.

An association that has at least 4 recreational vehicle dealers as members, substantially all of whom are new recreational vehicle dealers within the State, and that represents the collective interests of its members, has standing to file a petition or civil action against a manufacturer regulated under this chapter for itself or on behalf of any or all of its members.

Such an association also has standing to intervene in an action against a manufacturer regulated under this chapter previously filed by an individual member or members of the association to enforce the provisions of this chapter.

This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Author:

Senator Poore SD :

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