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Car Dealer Contract

Car Dealer Contract Template for Canada

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Key Requirements PROMPT example:

Car Dealer Contract

I need a Car Dealer Contract for our new electric vehicle dealership in Ontario, Canada, with specific provisions for charging infrastructure requirements and online sales platform integration, planned to commence operations in March 2025.

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Document background
The Car Dealer Contract serves as the foundational document governing the relationship between automotive manufacturers or distributors and their authorized dealers in Canada. This agreement is essential for establishing authorized dealerships and ensuring compliance with both federal and provincial regulations in the Canadian automotive industry. The contract typically covers comprehensive operational requirements, including vehicle sales targets, facility standards, service requirements, warranty obligations, and performance metrics. It's designed to protect both parties' interests while ensuring compliance with Canadian consumer protection laws, vehicle safety standards, and business regulations. The document is particularly important when establishing new dealerships, renewing existing agreements, or updating terms to reflect changes in the automotive market or regulatory environment.
Suggested Sections

1. Parties: Identification of the manufacturer/distributor and dealer, including legal names and addresses

2. Background: Context of the agreement, including the manufacturer's business and dealer's qualifications

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Territory: Terms of dealer appointment and defined geographic territory for operations

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Dealer Obligations: Core responsibilities including sales targets, facility standards, and staff training

7. Manufacturer Obligations: Responsibilities including vehicle supply, support, and training

8. Vehicle Orders and Delivery: Process for ordering vehicles and delivery terms

9. Pricing and Payment Terms: Vehicle pricing structure and payment conditions

10. Parts and Service: Requirements for parts inventory and service operations

11. Warranty Services: Dealer's obligations for warranty work and reimbursement terms

12. Intellectual Property: Usage rights for trademarks, logos, and other IP

13. Reporting Requirements: Financial and operational reporting obligations

14. Default and Termination: Conditions constituting default and termination procedures

15. Post-Termination Obligations: Rights and obligations after agreement termination

16. Governing Law: Applicable law and jurisdiction

17. General Provisions: Standard clauses including notices, amendments, and assignment

Optional Sections

1. Financial Services: Include when dealer offers manufacturer-branded financing services

2. Used Vehicle Operations: Include when agreement covers certified pre-owned program

3. Digital Sales Platform: Include when dealer participates in manufacturer's online sales platform

4. Electric Vehicle Requirements: Include for dealers selling electric vehicles, covering charging infrastructure and training

5. Export Prohibition: Include when restricting international sales is necessary

6. Performance Incentives: Include when offering bonus programs or incentives

7. Facility Upgrade Requirements: Include when specific facility improvements are required

8. Alternative Dispute Resolution: Include when parties agree to mediation or arbitration

9. Environmental Compliance: Include when specific environmental standards must be met

Suggested Schedules

1. Schedule A - Territory Description: Detailed description of dealer's authorized territory

2. Schedule B - Minimum Standards: Facility, inventory, and operational requirements

3. Schedule C - Performance Metrics: Sales targets and performance evaluation criteria

4. Schedule D - Approved Products: List of authorized vehicles and products for sale

5. Schedule E - Price Lists: Current dealer pricing and margin structure

6. Schedule F - Required Equipment: List of required tools, equipment, and diagnostic systems

7. Schedule G - Training Requirements: Required staff training and certification programs

8. Schedule H - Corporate Identity Standards: Branding and facility appearance requirements

9. Appendix 1 - Reporting Forms: Standard forms for required periodic reporting

10. Appendix 2 - Warranty Procedures: Detailed warranty claim procedures and policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Accessories
Affiliated Company
Approved Location
Authorized Products
Business Day
Canadian Motor Vehicle Safety Standards
Certified Pre-Owned Vehicle
Change of Control
Confidential Information
Customer Data
Dealer Management System
Dealer's Premises
Default
Delivery Date
Effective Date
Emergency Part
Factory Warranty
Force Majeure
Genuine Parts
Goodwill
Intellectual Property Rights
Inventory Requirements
Manufacturer's Suggested Retail Price
Minimum Sales Requirements
New Vehicle
Operating Standards
Parts and Accessories
Performance Criteria
Personnel
Premium Location
Proprietary Marks
Recall
Sales Territory
Service Standards
Special Tools
Stockholder
Technical Information
Term
Territory
Training Programs
Used Vehicle
Vehicle Distribution Agreement
Vehicle Order
Warranty Claim
Warranty Parts
Warranty Period
Warranty Services
Working Capital
Year
Zone of Influence
Clauses
Appointment and Authorization
Territory Rights
Term and Renewal
Dealer Obligations
Performance Standards
Facility Requirements
Training Requirements
Vehicle Orders and Delivery
Pricing and Payment
Warranty Obligations
Parts and Service
Customer Service
Intellectual Property
Confidentiality
Data Protection
Non-Competition
Assignment and Transfer
Change of Control
Default and Remedies
Termination
Post-Termination Obligations
Force Majeure
Insurance Requirements
Compliance with Laws
Environmental Compliance
Health and Safety
Record Keeping
Audit Rights
Reporting Requirements
Marketing and Advertising
Indemnification
Limitation of Liability
Dispute Resolution
Governing Law
Notice Requirements
Amendment and Waiver
Severability
Entire Agreement
Survival
Counterparts
Third-Party Rights
Relevant Industries

Automotive

Retail

Manufacturing

Distribution

Financial Services

Insurance

Transportation

Logistics

After-sales Service

Vehicle Maintenance

Relevant Teams

Legal

Operations

Sales

Compliance

Finance

Risk Management

Dealer Development

Business Development

After-sales Service

Contract Administration

Network Planning

Franchise Management

Relevant Roles

Dealer Principal

General Manager

Sales Director

After-sales Service Manager

Finance Manager

Compliance Officer

Legal Counsel

Business Development Manager

Operations Director

Franchise Development Manager

Regional Sales Manager

Contract Administrator

Risk Manager

Dealer Network Manager

Chief Financial Officer

Chief Operating Officer

Automotive Retail Manager

Industries
Motor Vehicle Safety Act: Federal legislation governing vehicle safety standards, import regulations, and compliance with Canadian safety requirements
Competition Act: Federal law governing fair business practices, advertising, and competition in the automotive industry
Consumer Protection Act: Provincial legislation (varies by province) protecting consumer rights in vehicle purchases, warranties, and financing
Sale of Goods Act: Provincial legislation governing the sale of goods, including vehicles, and defining rights and obligations of buyers and sellers
Personal Information Protection and Electronic Documents Act (PIPEDA): Federal privacy law governing the collection, use, and disclosure of personal information in commercial activities
Provincial Motor Vehicle Dealers Act: Provincial legislation (varies by province) regulating licensing and operations of motor vehicle dealers
Environmental Protection Act: Federal and provincial regulations regarding vehicle emissions standards and environmental compliance
Business Practices and Consumer Protection Act: Provincial legislation governing disclosure requirements, advertising practices, and consumer rights in vehicle sales
Cost of Credit Disclosure Act: Provincial legislation requiring clear disclosure of financing terms and costs in vehicle purchase agreements
Provincial Business Corporations Act: Provincial legislation governing business operations and corporate responsibilities of car dealerships
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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