The promotion prohibits dealers from taking advantage of the sale, and Child World has threatened Toys R Us with unspecified legal action.

In addition, the General Motors Corporation had prohibited investors or dealers from owning more than five G.M. franchises.

Federal law has long prohibited dealers from selling such vans to primary and secondary schools, but some dealers make such sales anyway.

The rule, known as G-37, prohibits bond executives, dealers and their firms from making contributions of more than $250 to officials who can award bond contracts.

Mr. Levitt's plan would have prohibited dealers from selling a municipal bond, new or old, if the issuer had not agreed to provide continual financial disclosure.

One such measure would prohibit dealers from delivering firearms to purchasers for a week, pending a police background check.

(New Jersey and Maryland are among the states that prohibit factory-owned dealers.)

The eight-mile rule prohibits same-franchise dealers from locating within eight miles of each other.

And the Federal Bankruptcy Code treats the industry more harshly than others, prohibiting stock brokers and dealers from entering reorganization proceedings.

To 'Smooth Transition' The act, in full force since last year, prohibits dealers from selling milk under cost or offering retailers cash rebates or other incentives.