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Resources / NC Chapter 20 / Article 12

North Carolina General Statutes, Chapter 20

The full text of G.S. 20-305.6 (Unlawful for manufacturers to unfairly discriminate among dealers), with plain-English commentary from North Carolina DWI defense attorneys Chris Adkins and Chris Purkey in the side column. Article 12: Motor Vehicle Dealers and Manufacturers Licensing Law.

§ 20-305.6. Unlawful for manufacturers to unfairly discriminate among dealers.

Notwithstanding the terms of any contract, franchise, novation, or agreement, it shall be unlawful for any manufacturer, factory branch, distributor, or distributor branch to do any of the following:

(1) Discriminate against any similarly situated franchised new motor vehicle dealers in this State.

(2) Unfairly discriminate against franchised new motor vehicle dealers located in this State who have dualed facilities at which the vehicles distributed by the manufacturer, factory branch, distributor, or distributor branch are sold or serviced with one or more other line makes of vehicles.

(3) Unfairly discriminate against one of its franchised new motor vehicle dealers in this State with respect to any aspect of the franchise agreement.

(4) Use any financial services company or leasing company owned or controlled by the manufacturer or distributor to accomplish what would otherwise be illegal conduct on the part of the manufacturer or distributor pursuant to this section. This section shall not limit the right of the financial services or leasing company to engage in business practices in accordance with the trade. (2001-510, s. 4.)

Official text of N.C. Gen. Stat. § 20-305.6 as published by the North Carolina General Assembly (Chapter 20 PDF, retrieved November 10, 2026). Verify the current version on ncleg.gov ↗.

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