Senate committee substitute makes the following changes to the 1st edition.

Amends new sub-sub-subdivision (6)to the definition for Motor vehicle dealer or dealer, providing that the terms apply to a person who engages in any of the activities listed in sub-sub-divisions one through five of GS 20-286(11)a using a computer or other electronic communications means to transmit applications, contracts, or orders for motor vehicles purchased or leased by retail purchasers or lessees located in this state.

Clarifies that the licensing requirements of GS 20-287(a) apply to a license holder as defined in the new definition added in GS 20-286(11)a.

Amends GS 20-305(30), extending the deadlinefor certain established manufacturer programs that vary the price charged to its franchised dealers in the state, although the programs would otherwise be unlawful under GS 20-305, to continue in effect until June 30, 2018 (was, June 30, 2016). Deletes changes to GS 20-305(33) and (34). Makes technical changes to new subdivisions (44) and (45) of GS 20-305 and provides that (44) also applies to the display of sports memorabilia. Expands the provisions of subdivisions (45), (46) and (47) to clarifythe types ofunlawful acts of coercion and discrimination prohibited under this section.

Amends new GS 20-305.2(e)to providethat an unfair method of competition includes any physical or mechanical warranty repair(was, any warrantyor nonwarranty fix, repair, update, or adjustment) made or provided directly by a manufacturer or distributor to anymotor vehicle in this state requiring direct participation of a dealer franchised by the manufacturer or distributor and without such dealer receivingreasonable compensation. Adds new subsection (f) to declare that no claim or cause of action may be brought against a dealer in this state arising out of any warranty repair, fix, repair, or update that was provided by the manufacturer or distributor without the direct participation of the dealer. Requires any manufacturer or distributor who violates this provision to fully indemnify and hold harmless any dealer in this state for claims, judgments, damages, attorney's fees, litigation expenses and all other costs arising out of the actual or attempted fix, repair, update or adjustment.

Makes clarifying and conforming changes to GS 20-305.7(g2). Amends GS 20-305.1 (automobile dealer warranty obligations) to amend the phrase "fair and reasonable" to read "reasonable " wherever it occurs and to amend the phrase "unfair and unreasonable" to read "unreasonable" wherever it occurs. Adds that if the manufacturer or distributor prevails at a protest hearing, the proposed rate is effective beginning 30 days following issuance of the final order.