Code of Alabama

Ala. Code § 8-20-2 (2026)

Declaration of Purpose.

✓ official Alabama Legislature (ALISON) text, current July 2026

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(a) The Legislature finds and declares that the distribution and sale of motor vehicles within this state vitally affect the general economy of the state and the public interest and the public welfare, and that in order to promote the public interest and the public welfare, and in the exercise of its police power, it is necessary to regulate motor vehicle manufacturers, distributors, dealers, and their representatives and to regulate the dealings between manufacturers and distributors or wholesalers and their dealers in order to prevent fraud and other abuses upon the citizens of this state and to protect and preserve the investments and properties of the citizens of this state.

(b) This chapter shall not apply to any recreational vehicle manufacturer and dealer agreement to which Chapter 21C of this title applies.

(Acts 1981, No. 81-390, p. 596, §2; Act 2011-636, p. 1529, §12.)

Notes of Decisions

Cited in 4 cases, 1989–2009 · leading case: Edwards v. Kia Motors of Am., Inc., 8 So. 3d 277 (Ala. 2008).

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Edwards v. Kia Motors of Am., Inc., 8 So. 3d 277 (Ala. 2008). · cites it 6× “In § 8-20-2, Ala.Code 1975, the legislature expressed its intent in enacting the Franchise Act: "The legislature finds and declares that the distribution and sale of motor vehicles within this state vitally affect the general economy of the state and the public interest and the…”

Tittle v. Steel City Oldsmobile GMC Truck, Inc., 544 So. 2d 883 (Ala. 1989). “) *887 § 8-20-2. The fundamental purpose of this statute is clear.”

Sutherlin Toyota, Inc. v. Toyota Motor Sales USA, Inc., 549 So. 2d 460 (Ala. 1989). “” Section 8-20-2, Ala. Code 1975. The purpose of the Act is clear.”

Edwards v. Kia Motors of Am., Inc., 554 F.3d 943 (11th Cir. 2009). “(quoting Ala.Code § 8-20-2). 11 . Appellants consented and entered into a Kia Dealer Sales & Service Agreement in August 2002.”

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