California · Health and Safety Code - HSC

HSC §18062.5: It is unlawful for any manufacturer or distributor to coerce or attempt to coerce any dealer in this state to do any of the following: (a) Order or accept delivery of any manufactured home, mobilehome

Misdemeanor

What this law says, in plain English

Manufacturers and distributors are prohibited from coercing dealers to order unwanted inventory, pay for advertising, or comply with unfavorable terms by threatening to cancel franchise agreements.

Read the full statutory text
It is unlawful for any manufacturer or distributor to coerce or attempt to coerce any dealer in this state to do any of the following: (a) Order or accept delivery of any manufactured home, mobilehome, or commercial coach, part or accessory thereof, appliance, equipment or any other commodity not required by law which shall not have been voluntarily ordered by the dealer. (b) Order or accept delivery of any manufactured home, mobilehome, or commercial coach with special features, appliances, accessories or equipment not included in the list price of the manufactured home, mobilehome, or commercial coach as publicly advertised by the manufacturer or distributor. (c) Order for any person any parts, accessories, equipment, machinery, tools, appliances, or any commodity whatsoever. (d) Participate in an advertising campaign or contest, any promotional campaign, promotional materials, training materials, showroom or other display decorations or materials at the sole expense of the dealer. (e) Enter into any agreement with the manufacturer or distributor or to do any other act prejudicial to the dealer by threatening to cancel a franchise or any contractual agreement existing between the dealer and manufacturer or distributor. Notice in good faith to any dealer of the dealer’s violation of any terms or provisions of the franchise or contractual agreement shall not constitute a violation of this section.

Verify at the official source: California legislative text

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.