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The main forms of commercial vehicle companies in China are limited liability companies and joint stock companies. In the United States, the company's main forms are limited liability companies, joint-stock companies and limited partnerships. The U.S. corporate framework is relatively flexible.
According to statistics, China exported 11,600 commercial vehicles in 2005. The major export markets were the Middle East, Eastern Europe, Africa, and Latin America, and the market share in developed countries such as the United States and Canada was still very small.
Car defects and recall system
The National Traffic and Motor Vehicle Security Act of the United States was originally passed in 1966 and is now incorporated into Chapter 49 of Title 49 of the United States Code. The Act gives the National Highway Traffic Safety Administration of the United States the power to issue motor vehicle safety standards and require manufacturers to recall defective vehicles related to safety. Since then, there have been more than 299 million cars, trucks, buses, RVs, motorcycles, and mopeds, along with 43 million tires and 84 million vehicles, including children. The seat was recalled to correct the safety defect.
The recall is necessary when the motor vehicle or motor vehicle components (including tires) do not meet the requirements of the National Traffic and Motor Vehicle Safety Act or there are safety-related defects. Many of these recalls were consciously initiated by manufacturers and were affected by the investigation of the National Highway Traffic Safety Administration of the United States or by court orders of the National Highway Traffic Safety Administration of the United States. If a safety flaw is found, the manufacturer must notify the U.S. National Highway Traffic Safety Administration and owners, distributors, and distributors of motor vehicles and equipment. Manufacturers must provide free remedies to car owners. The National Highway Traffic Safety Administration of the United States is responsible for monitoring the manufacturer's corrective actions to ensure that the manufacturer fully complies with relevant regulations.
The investigation process of the US Automotive Defect Investigation Office includes:
Screening - preliminary review of consumer complaints and other defect-related information to determine whether to conduct an investigation
Request Analysis - Analyze the security issues involved in the request
Investigations - Investigating Alleged Security Deficiencies
Recall management - investigate whether there has been a complete safety recall
If the manufacturer refuses to execute after receiving the recall request, the implementing agency may make a preliminary decision that the safety defect exists. After a preliminary decision is made to hold a meeting, manufacturers and the public can submit information and evidence. At the meeting, the manufacturer can refute the government's evidence in addition to providing new information.
China's auto recall system was established in early 2004. Defective automotive product recall management regulations cover all passenger cars. Manufacturers (importers) of automotive products perform recall duties on defective automobile products produced and imported; sellers, renters, and repairers of automotive products should assist manufacturers in fulfilling their recall obligations. Defective automotive product recalls are recalled in accordance with the manufacturer’s voluntary recall and the directive of the competent department to recall the two procedures. The government is studying the feasibility of recalling commercial vehicles.
Judging the defects of automotive products includes the following principles:
There are technical regulations and national standards that do not meet the safety requirements of the vehicle; there is damage to the owner or other persons caused by the defects of the design and the manufacturer, and the damage to the owner or property is caused; Experiments and arguments that defects may still cause personal or property damage under certain conditions.
American Car Dealership System
In the franchise relationship, the US Federal Trade Commission must sell products and services provided by manufacturers, and manufacturers must help dealers find retail outlets. Before the start of business or within six months of the start of business, there must be a transaction of at least $500 between the distributor and the manufacturer. The contract and conditions between the distributor and the manufacturer must be in writing, and the distributor must obtain the contract at least 10 days prior to obtaining the business or the contract. This is also referred to as a unified franchise announcement.
In addition to the Federal Trade Commission, some states manage franchising through the Business Opportunities Act, including distribution and distribution. Similar to the unified franchise announcements, these laws focus on publishing information to future franchisees. These state laws may also include rights and subsidies for business opportunity investors. If the Federal Trade Commission's franchise regulations do not require sellers of business opportunities to provide pre-sales information, these states will likely make corresponding requests. There are currently more than 20 states with business opportunities in the United States.
Just as in other areas of franchising, car dealerships will gain a market guarantee for a product or service, using product branding, financial and inventory systems, marketing plans, and the ability to purchase and advertise in bulk. In addition, distributors can obtain corresponding rights and responsibilities, training and support from manufacturers, location selection criteria, assistance, and quality control information. It can also require frequent on-site inspections and customer feedback.
The law governing the relationship between manufacturers and dealers
In addition to federal and state laws that govern franchising, many states also passed laws governing contracts between manufacturers and distributors. Wisconsin, North Carolina, Michigan, and Pennsylvania have enacted laws to greatly limit the freedom of contract between manufacturers and distributors.
In order to build a legally protected dealership relationship within the framework of fair dealer laws, dealers must be able to represent the following two aspects:
First, there must be a contract or agreement between the franchisor and the distributor. The franchisee gives the dealer the right to sell or distribute the goods and services, or use the trademark, service mark, company logo, advertisement. Or the power of other commercial signs.
Second, there must be a common interest in the sale or distribution of goods or services between the concessionaire and the distributor. Common interest refers to the existence of a continuous business relationship between franchisees and dealers. Generally speaking, protected commercial relationships already include manufacturers and their distributors, companies and their independently owned shops, as well as companies and their employees under very specific conditions.
The tone of the fair dealer laws is the requirement of "justified reasons." The donor of the franchise may not terminate, cancel, renew or substantially change the competitive environment of the distributor agreement either directly or through its supervisor, agent or employee without “justified reasonsâ€. The responsibility for establishing "justified reasons" lies with the concessionist. Perhaps the most controversial aspect is that the fair-distribution law requires the concessionaire to extend the distribution agreement if it fails to provide "fair reasons" to refuse to extend the distribution agreement. In many cases, this will cause the concession provider to suffer from the contractual expectations.
In addition to the “reasonable†requirement, the fair distribution law requires that any franchisee wishing to terminate or make a damaging change to the terms of the distribution agreement must give the distributor appropriate notice and provide the dealer an opportunity to “correct "The constitution granting party believes that there is a "just cause" to take the action of the desired defect.
In China, there are more than 30,000 dealers and more than 2,000 franchise stores, and they must obtain authorization from the OEM or the general distributor.
U.S. safety standards for commercial vehicles
Several agencies of the federal government are responsible for safety standards regulations for commercial vehicles, such as the Department of Transportation, the United States Occupational Safety and Health Administration, and state laws.
The Ministry of Transportation is responsible for safety regulations, safety recall information, other safety-related markings and record keeping requirements, and safety regulations.
The regulations of the Ministry of Communications include:
49 CFR §§ 571 to 599 includes the federal motor vehicle safety standards and regulations. These regulations are the minimum safety requirements for motor vehicles or motor vehicle equipment. The purpose is to ensure that (1) the public is protected from the risk of unreasonable crashes caused by design, construction or motor vehicle operating conditions; (2) in the event of a crash In the circumstances, the public is protected from unreasonable casualties.
US Federal Motor Vehicle Safety Standard:
The National Highway Traffic Safety Administration has the legislative power to promulgate U.S. federal motor vehicle standards and laws and regulations that must be complied with by motor vehicle manufacturers and mobile device manufacturers under U.S.C. 49, Chapter 301, Regulations on Motor Vehicle Safety. The provisions of the Federal Motor Vehicle Safety Standard 209 regarding seat belt assembly came into effect on March 1, 1967. Some other safety standards took effect in 1968. The regulations are very detailed and cover a wide range of security issues.
The U.S. federal motor vehicle safety standards are divided into the following sections:
Avoidance of collisions (control and display, transmission gear sequence, starter interlocks and brake effects, brake oil hoses, etc.) Crashworthiness of automobiles (flexible headrests, glass materials, seat belt assemblies, etc. of automobile seats) Aftermath (completeness of the fuel system, likelihood of materials in the vehicle, etc.) Defects and violations of law reports: US Department of Transportation regulations also require car manufacturers to report to the National Highway Traffic Safety Administration on safety defects, provide quarterly notifications of defects, and provide Communication with dealers and buyers about car defects and keeping a list of car owners.
In terms of car rollover, the National Highway Traffic Safety Administration requires that manufacturers of multi-purpose vehicles permanently stick “warp warning signs†on the sun visor to remind the driver to perform certain special operations that require special driving methods. The purpose is to remind the consumer that the utility vehicle has a higher degree of rollover than other vehicles, and suggests that the consumer can take measures and steps to reduce the likelihood of rollover and reduce the damage caused by rollover.
The National Highway Traffic Safety Administration regulations also establish procedures that require imported cars to comply with the federal government's standards for safety, bumper and theft prevention.
Car safety compliance
Manufacturers have the responsibility to fully comply with the federal motor vehicle safety standards. Unlike some countries, such as Japan, the difference is that this is a self-certifying process.
The National Highway Traffic Safety Administration will not issue approval labels, labeling or logos before and after car sales. In order to prove that their cars meet the standards, manufacturers must take all measures that they deem appropriate. This usually means carrying out laboratory tests that are in compliance with the federal motor vehicle safety standards or other studies or analyses to ensure that the product fully complies with safety standards.
Automotive Testing: The Vehicle Safety Compliance office laboratory testing procedures must be continuously updated for any federal vehicle safety compliance program. The U.S. Federal Motor Vehicle Safety Standard specifies the minimum safety requirements and objective tests to show product compliance. The Vehicle Safety Compliance office laboratory test program specifies the types of laboratory tests, equipment calibrations, test procedures, checklists, and reporting requirements. The Vehicle Safety Compliance Office also conducts sample tests to ensure that manufacturers comply with federal motor vehicle safety standards.
Other safety regulations:
Certain occupational and health regulations govern the design of commercial and agricultural vehicles. Each state can have its own laws governing the safety requirements of commercial vehicles. For example, Florida has enacted laws that set safety standards for buses owned and used by all municipal traffic authorities.
China has also introduced some regulations related to automobile safety, such as: occupant protection for side collisions (GB 20071-2006), safety requirements for passenger vehicles after collision (GB 20072-2006), and technical safety conditions for motor vehicles (GB 7258-2004) etc.
Sino-US Environmental Regulations
The U.S. automobile industry must comply with U.S. environmental regulations. Clean Air Act, Clean Water Law, Resource Protection and Restoration Law, U.S. Comprehensive Environmental Liability Compensation and Obligation Law, Toxic Substances Control Law, Dangerous Goods Delivery Law, Emergency Plan and Community Informed Right Law, Prevention of Oil Pollution Law, and Endangered Species Law.
In the area of ​​alternative energy and energy, the U.S. Energy Policy Act of 2005 calls for the establishment of new energy projects to increase technology and reduce costs. The bill requires that at least 7.5 billion gallons of renewable energy be added to the national energy supply by 2012. The goal of the Department of Energy is to replace 30% of transportation fuels with biofuels. The new federal regulations requiring the use of clean diesel (sulfide reduction by 97%) came into force in 2006.
China's emission standards currently include: Vehicle Compression Ignition, Gaseous Fuel Ignition Engine and Vehicle Exhaust Emission Limits and Measurement Methods (GB 17691-2005), Light Vehicle Pollution Source Limits and Measurement Methods (GB 18352.3- 2005) Vehicle-mounted automatic diagnostic systems must be installed on vehicles equipped with ignition-engined heavy-duty vehicle fuel evaporative pollutant emission limits and methods (GB 14763-2005) and all State III emission standards.
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Comparison of Legal Environment between Commercial Vehicle Market in China and the United States