Court upholds Connecticut warranty reimbursement law

Court upholds Connecticut warranty reimbursement law

The U.S. Second Circuit Court of Appeals has issued an order affirming Connecticutês warranty reimbursement law, which had been challenged by the Alliance of Automobile Manufacturers. The case was Alliance of Automobile Manufacturers Inc. v. Melody A. Currey (Commissioner of the Connecticut Department of Motor Vehicles, defendant), with the Connecticut Automotive Retailers Association joining the case on behalf of the defendant.

The Alliance alleged that the franchise law violated several provisions of the U.S. Constitution. The Alliance also claimed that the warranty law would harm its automakers by raising the cost for them to do business in Connecticut. Several constitutional points were examined, and in the end, the Court upheld the law favored by dealers.

The outcome is very positive for dealers across the country. Maryland, for instance, passed an improved warranty reimbursement bill in 2014. Kudos to the Connecticut Auto Retailers for marshalling this positive result for dealers nationwide.