New Jersey § 56:10-7
Full text of New Jersey New Jersey Statutes § 56:10-7, with citation guidance and answers to common questions.
§ 56:10-7.
a. It shall be a violation of the “Franchise Practices Act,” P.L.1971, c. 356 ( C.56:10-1 et seq. ) for a motor vehicle franchisor to require a motor vehicle franchisee to agree to
a term or condition in a franchise, or in any lease or agreement ancillary or collateral
to a franchise, which: (1) Requires the motor vehicle franchisee to waive trial by jury in actions involving
the motor vehicle franchisor; or (2) Specifies the jurisdictions, venues or tribunals in which disputes arising with
respect to the franchise, lease or agreement shall or shall not be submitted for resolution
or otherwise prohibits a motor vehicle franchisee from bringing an action in a particular
forum otherwise available under the law of this State; or (3) Requires that disputes between the motor vehicle franchisor and motor vehicle
franchisee be submitted to arbitration or to any other binding alternate dispute resolution
procedure; provided, however, that any franchise, lease or agreement may authorize
the submission of a dispute to arbitration or to binding alternate dispute resolution
if the motor vehicle franchisor and motor vehicle franchisee voluntarily agree to
submit the dispute to arbitration or binding alternate dispute resolution at the time
the dispute arises. b. For the purposes of this section, it shall be presumed that a motor vehicle franchisee
has been required to agree to a term or condition in violation of this section as
a condition of the offer, grant or renewal of a franchise or of any lease or agreement
ancillary or collateral to a franchise, if the motor vehicle franchisee, at the time
of the offer, grant or renewal of the franchise, lease or agreement is not offered
the option of an identical franchise, lease or agreement without the term or condition
proscribed by this section. c. In addition to any remedy provided in the “Franchise Practices Act,” any term or
condition included in a franchise, or in any lease or agreement ancillary or collateral
to a franchise, in violation of this section may be revoked by the motor vehicle franchisee
by written notice to the motor vehicle franchisor within 60 days of the motor vehicle
franchisee's receipt of the fully executed franchise, lease or agreement. This revocation shall not otherwise affect the validity, effectiveness or enforceability
of the franchise, lease or agreement.
Frequently Asked Questions About New Jersey § 56:10-7
What does New Jersey Statutes § 56:10-7 cover?
Section 56:10-7 is part of the New Jersey Statutes, the codified statutory law of New Jersey. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Jersey § 56:10-7?
A common citation format is "New Jersey Statutes § 56:10-7" (New Jersey). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 56:10-7 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Jersey.