Final answer:
Automobile dealership franchise holders are protected from bad faith termination of their dealerships by the Automobile Dealers' Day in Court Act. This act allows dealerships to present their case in court before the termination of their franchise. The option (B) is correct.
Step-by-step explanation:
Automobile dealership franchise holders are protected from bad faith termination of their dealerships by the Automobile Dealers' Day in Court Act. This act was enacted to ensure that automobile dealers have the opportunity to present their case in court before their franchise is terminated. It provides a legal mechanism for dealerships to seek redress if they believe they have been unfairly terminated by their franchisor.
For example, if an automobile manufacturer wants to terminate a dealership franchise, they must give the dealership notice and provide specific reasons for the termination. If the dealership believes the termination is unjust or in bad faith, they can then take the matter to court to seek a remedy.
The Act covers an action based on a wrongful termination of a franchise where the dealer was forced to terminate because of coercive and intimidating acts of the manufacturer.