CHAPTER 6. DISTRIBUTION AND SALE OF MOTOR VEHICLES
PART I. GENERAL PROVISIONS APPLICABLE TO MOTOR VEHICLES AND RECREATIONAL PRODUCTS
§1251. Declaration of public policy
The legislature finds and declares that the distribution and sale of motor vehicles and recreational products in the state of Louisiana vitally affects the general economy of the state, 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 and to license those persons enumerated in R.S. 32:1254 and doing business in Louisiana, in order to prevent frauds, impositions, and other abuses upon its citizens, and avoid undue control of the independent motor vehicle dealer and recreational products by their motor vehicle manufacturing and distributive organizations and foster and keep alive vigorous and healthy competition, by prohibiting unfair practices by which fair and honest competition is destroyed or prevented, and to protect the public against the creation or perpetuation of monopolies and practices detrimental to the public welfare, to prevent the practice of requiring the buying, leasing, or renting of special features, appliances, and equipment not desired or requested by the purchaser, lessee, or renter, to prevent false and misleading advertising, to prevent unfair practices by said licensees, to promote the public safety and prevent disruption of the system of distribution of motor vehicles and recreational products to the public and prevent deterioration of facilities for servicing motor vehicles and keeping same safe and properly functioning, and prevent bankrupting of motor vehicle and recreational products dealers and lessors, who might otherwise be caused to fail because of such unfair practices and competition, thereby resulting in unemployment, disruption of leases, and nonpayment of taxes and loans, and contribute to an inevitable train of undesirable consequences, including economic depression.
Acts 1985, No. 911, §1; Acts 2005, No. 500, §1, eff. July 12, 2005; Acts 2009, No. 403, §1, eff. July 7, 2009.
Notes of Decisions
Louisiana Motor Veh. Com'n v. WHEELING FRENCH., 103 So. 2d 464 (La. 1958).
· cites it 2× “That law has for its purpose the regulation of the distribution and sale of motor vehicles in the State of Louisiana, it being declared in R.S. 32:1251 that such sales affect the general economy of the State and the public interest and public welfare and, therefore, it is…”
Duplessis Cadillac, Inc. v. Creative Credit, 597 So. 2d 1155 (La. Ct. App. 1992).
“It is true that in Chrysler Credit Corporation we rejected an argument that LSA-R.S. 32:1251 be read to allow a broad scope of recovery on the bonds.”
Morrison v. Allstar Dodge, Inc., 792 So. 2d 9 (La. Ct. App. 2001).
“32:1260 is inapplicable in an action in redhibition, and if it could apply, La.R.S. 32:1260 is an affirmative defense which had to be specifically pleaded and not raised in a post-trial memorandum.”
Kelley Blue Book Co. v. Louisiana Motor Veh. Comm'n, 204 So. 3d 1139 (La. Ct. App. 2016).
· cites it 2× “The violation of an advertising rule shall be considered by the commisr sion as a prima facie violation of R.S. 32:1251 et seq. In addition to a violation of a specific advertising rule, any other advertising or advertising practices found by the commission to be false,…”
Aero Motors, Inc. v. Adm'r, Motor Veh. Admin., 337 A.2d 685 (Md. 1975).
“It is evident, therefore, that it was to curtail this hazard, aside from all other reason stated in R.S. 32:1251, that the Legislature enacted the statute now under consideration.”
Nissan Motor Corp. in U.S.A. v. Royal Nissan, Inc., 757 F. Supp. 736 (E.D. La. 1991).
· cites it 2× “The dealers also claimed that Nissan’s action would not “promote the public interest” or “foster and keep alive vigorous competition” as contemplated by Louisiana Revised Statute section 32:1251. A hearing date of March 11, 1991 was set by the Commission.”
SALES 360 v. Louisiana Motor Veh. Com'n, 976 So. 2d 188 (La. Ct. App. 2007).
· cites it 4× “The Commission's jurisdiction is set out in LSA-R.S. 32:1251, et seq., and includes the advertising of sales of motor vehicles as provided in LSA-R.”
Chrysler Credit Corp. v. US Fid. & Guar. Co., 543 So. 2d 642 (La. Ct. App. 1989).
“Insight into the legislative purpose of the bonds is found in LSA-R.S. 32:1251, which defines the public policy behind the statutes governing the distribution and sale of motor vehicles.”
MTU of North Am., Inc. v. Raven Marine, Inc., 603 So. 2d 803 (La. Ct. App. 1992).
“See LSA-R.S. 32:1251. By placing automobiles on the market, the supplier represents to the public that the vehicles are suitable for use.”
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