§ 20-304. Coercion of retail dealer by manufacturer or distributor in connection with installment sales contract prohibited. - North Carolina Statutes

§ 20‑304.  Coercion ofretail dealer by manufacturer or distributor in connection with installmentsales contract prohibited.

(a)        It shall beunlawful for any manufacturer, wholesaler or distributor, or any officer, agentor representative of either, to coerce, or attempt to coerce, any retail motorvehicle dealer or prospective retail motor vehicle dealer in this State tosell, assign or transfer any retail installment sales contract, obtained bysuch dealer in connection with the sale by him in this State of motor vehiclesmanufactured or sold by such manufacturer, wholesaler, or distributor, to aspecified finance company or class of such companies, or to any other specifiedpersons, by any of the acts or means hereinafter set forth, namely:

(1)        By any statement,suggestion, promise or threat that such manufacturer, wholesaler, ordistributor will in any manner benefit or injure such dealer, whether suchstatement, suggestion, threat or promise is expressed or implied, or madedirectly or indirectly,

(2)        By any act that willbenefit or injure such dealer,

(3)        By any contract, orany expressed or implied offer of contract, made directly or indirectly to suchdealer, for handling motor vehicles, on the condition that such dealer sell,assign or transfer his retail installment sales contract thereon, in thisState, to a specified finance company or class of such companies, or to anyother specified person,

(4)        By any expressed orimplied statement or representation, made directly or indirectly, that suchdealer is under any obligation whatsoever to sell, assign or transfer any ofhis  retail sales contracts, in this State, on motor vehicles manufactured orsold by such manufacturer, wholesaler, or distributor to such finance company,or class of companies, or other specified person, because of any relationshipor affiliation between such manufacturer, wholesaler, or distributor and suchfinance company or companies or such other specified person or persons.

(b)        Any suchstatements, threats, promises, acts, contracts, or  offers of contracts, whenthe effect thereof may be to lessen or eliminate competition, or tend to createa monopoly, are declared unfair trade practices and unfair methods ofcompetition and against the public policy of this State, are unlawful and arehereby prohibited. (1955, c. 1243, s. 20.)