Title 10, Chapter 1, Section 663
( 10-1-663)
(a) No franchisor shall require, attempt to require, coerce, or
attempt to coerce any dealer in this state: (1) To participate monetarily in an advertising campaign or
contest or to purchase any promotional materials, training
materials, showroom or other display decorations, or materials at
the expense of the dealer; or (2) To change or refrain from changing the capital structure or
ownership of the dealer or the means by or through which the
dealer finances the operation of the dealership, provided the
dealer at all times meets any reasonable capital standards
determined by the franchisor in accordance with uniformly applied
criteria and provided no change in the capital structure shall
cause a change in the principal management or have the effect of a
sale of the franchise without the consent of the franchisor, which
consent shall not unreasonably be withheld. (b) No franchisor shall: (1) Refuse to disclose to any dealer the manner and mode of
distribution of the same line make as handled by the dealer within
the dealer's market area; (2) Increase prices of new motor vehicles which the dealer had
ordered for consumers prior to the dealer's receipt of the written
official price increase notification. A sales contract signed by
a consumer shall constitute evidence of each such order, provided
the vehicle is in fact delivered to that customer. Price
differences applicable to new models or series shall not be
considered a price increase. Price changes caused by the addition
to a motor vehicle of required or optional equipment, revaluation
of the United States dollar in the case of foreign-make vehicles
or components, or an increase in transportation charges due to
increased rates imposed by carriers shall not be subject to the
provisions of this paragraph; (3) Discriminate unfairly among its dealers with respect to any
aspect of operating a motor vehicle dealership; (4) Establish or create: (A) By agreement or otherwise, unreasonable restrictions
relative to noncompetition covenants or site control, whether by
sublease, collateral pledge of lease, agreement, or other means; (B) Reserved; (C) By agreement or otherwise, an option to purchase the
dealership or its assets from the dealer; or (D) By agreement or otherwise, unreasonable requirements to
comply with subjective standards or other matters incident to
the operation of the dealership; or (5) Unreasonably change the market area of a dealer as set forth
in the dealer's franchise agreement. |