Franchise agreements. Franchisors and franchisees are required to comply with the Franchising Code of Conduct. The Code applies to conduct occurring on or after 1 January 2015 in relation to all franchise agreements entered into, transferred, renewed or extended on or after 1 October 1998.
Generally speaking, overdrive is the highest gear in the transmission. Overdrive allows the engine to operate at a lower RPM for a given road speed. This allows the vehicle to achieve better fuel efficiency, and often quieter operation on the highway.
How Automatic Transmissions Work. By definition, an overdrive has a faster output speed than input speed. It's a speed increase -- the opposite of a reduction. In this transmission, engaging the overdrive accomplishes two things at once. If you read How Torque Converters Work, you learned about lockup torque converters.