Store Research
Assembly Bill 2383 (Utt – 1935)
Chapter 622, Statutes of 1935
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The current language of Business and Professions Code sections 18400 through 18413 can be traced to uncodified sections 1 through 15 of a 1935 Act entitled, in part:
An act to prohibit and declare void certain contracts, conditions,
agreements and understandings in connection with the sale or contract to sell motor vehicles by manufacturers or wholesale distributors thereof, and prohibiting the giving or payment of any thing or service of value by any manufacturer or wholesale distributor of motor vehicles to any one engaged in the business of financing the purchase or sale of motor vehicles or of buying conditional sales contracts, chattel mortgages or leases on motor vehicles, and . . .
(See Exhibit #1e)
This 1935 Automobile Dealers’ Anti-coercion Act was enacted following legislative passage of Assembly Bill 2383, introduced by Assembly member James B. Utt on March 7, 1935. (See Exhibit #1a)
Assembly Bill 2383 was assigned to the Assembly Committee on Judiciary and the Senate Committee on Corporations and Financial Institutions where policy issues raised by the bill were considered. (See Exhibit #2) Three amendments were made to Assembly Bill 2383. (See Exhibits #1b through #1d) Subsequent to legislative approval, Governor Frank Merriam signed the bill on June 15, and it was recorded by the Secretary of State on July 15, as Chapter 622 of the Statutes of 1935. (See Exhibits #1e and #2)
The 1935 Summary Digest of Statutes Enacted described Assembly Bill 2383 as follows:
New act, re sale and financing of sale of motor vehicles, to be known as the “Automobile Dealers’ Anti-coercion Act.”
Prohibits agreements between manufacturers or distributors and dealers to compel financing of cars with any particular company.
(See Exhibit #3, page 88)