Title 10, Chapter 1, Section 662
( 10-1-662)
(a) It shall be unlawful for any franchisor: (1) To delay, refuse, or fail to deliver new motor vehicles or new
motor vehicle parts or accessories in a reasonable time and in
reasonable quantity if such vehicles, parts, or accessories are
publicly advertised as being available for immediate delivery.
This paragraph is not violated, however, if such failure is caused
by acts or causes beyond the control of the franchisor; (2) To obtain money, goods, services, or any other benefit from
any other person with whom the dealer does business, on account
of, or in relation to, the transaction between the dealer and such
other person, other than as compensation for services rendered,
unless such benefit is promptly accounted for and transmitted to
the dealer; (3) To release to any outside party, except under subpoena or as
otherwise required by law or in an administrative, judicial, or
arbitration proceeding involving the franchisor or dealer, any
business, financial, or personal information which may be from
time to time provided by the dealer to the franchisor, without the
express written consent of the dealer; (4) To resort to or to use any false or intentionally deceptive
advertisement in the conduct of business as a franchisor in this
state; (5) To make any false or intentionally deceptive statement, either
directly or through any agent or employee, in order to induce any
dealer to enter into any agreement or franchise or to take any
action which is prejudicial to that dealer or that dealer's
business; (6) To require any dealer to assent prospectively to a release,
assignment, novation, waiver, or estoppel which would relieve any
person from liability to be imposed by law or to require any
controversy between a dealer and a franchisor to be referred to
any person other than the duly constituted courts of the state or
the United States if such referral would be binding upon the
dealer, provided that this Code section shall not prevent any
dealer from entering into a valid release agreement with the
franchisor; (7) To fail to observe good faith in any aspect of dealings
between the franchisor and the dealer; (8) To deny any dealer the right of free association with any
other dealer for any lawful purposes; (9) To engage in any predatory practice or discrimination against
any dealer; (10) To propose or make any material change in any franchise
agreement without giving the dealer written notice by certified
mail or statutory overnight delivery of such change at least 60
days prior to the effective date of such change; (11) To cancel a franchise or to take any adverse action against a
dealer based in whole or in part on the failure of the dealer to
meet the performance goals of the manufacturer when that failure
is due to the failure of the franchisor to supply, within a
reasonable period of time, new motor vehicles ordered by or
allocated to the dealer; (12) To offer to sell or lease or to sell or lease any new motor
vehicle or accessory to any dealer at a lower actual price
therefor than the actual price offered to any other dealer for the
same model vehicle similarly equipped or same accessory or to use
any device, including but not limited to an incentive, sales
promotion plan, or other similar program, which results in a lower
actual price of a vehicle or accessory being offered to one dealer
and which is not offered to other dealers of vehicles of the same
line make or the same accessory; (13) To conduct an audit, investigation, or inquiry of any dealer
or dealership as to any activity, transaction, conduct, or other
occurrence which took place or as to any promotion or special
event which ends more than one year prior to such audit,
investigation, or inquiry or to base any decision adverse to the
dealer or dealership on any activity, transaction, conduct, or
other occurrence which took place or as to any promotion or
special event which ends more than one year prior to such decision
or which took place any time prior to the period of time covered
by such audit, investigation, or inquiry or to apply the results
of an audit, investigation, or inquiry to any activity,
transaction, conduct, or other occurrence which took place any
time prior to the time covered by such audit, investigation, or
inquiry; (14) To charge back to, deduct from, or reduce any account of a
dealer or any amount of money owed to a dealer by a franchisor any
amount of money the franchisor alleges is owed to such franchisor
by such dealer as a result of an audit, investigation, or inquiry
of such dealer, but rather if a franchisor alleges that a dealer
owes such franchisor any amount of money as a result of an audit,
investigation, or inquiry, such franchisor shall send a notice to
such dealer for such amount and the dealer shall have not less
than 30 days to contest such amount or remit payment; (15) To deny, delay payment for, restrict, or bill back a claim by
a dealer for payment or reimbursement for warranty service or
parts, incentives, hold-backs, special program money, or any other
amount owed to such dealer unless such denial, delay, restriction,
or bill back is the direct result of a material defect in the
claim which affects the validity of the claim; (16) To engage in business as a dealer or to manage, control, or
operate, or own any interest in a dealership either directly or
indirectly, if the primary business of such dealer or dealership
is to perform repair services on motor vehicles, except motor
homes, pursuant to a manufacturer's or franchisor's warranty; or (17) To refuse to allow, limit, or restrict a dealer from
acquiring or adding a sales or service operation for another line
make of motor vehicles at the same or expanded facility at which
the dealer currently operates a dealership unless the franchisor
can prove by a preponderance of the evidence that such acquisition
or addition will substantially impair the dealer's ability to
adequately sell or service such franchisor's motor vehicles. (b) No action shall in any way be based on this Code section with
respect to acts occurring prior to July 1, 1983. |