Title 10, Chapter 1, Section 664
( 10-1-664)
(a) Any franchisor which intends to establish a new dealership or to
relocate a current dealership for a particular line-make motor
vehicle within the relevant market area of an existing dealership of
the same line-make motor vehicle shall give written notice of such
intent by certified mail or statutory overnight delivery to such
existing dealership. The notice shall include: (1) The specific location of the additional or relocated
dealership; (2) The date on or after which the additional or relocated
dealership will commence operation at the new location; (3) The identity of all existing dealerships in whose relevant
market area the new or relocated dealership is to be located; and (4) The names and addresses of the dealer and principals in the
new or relocated dealership. (b) Any existing dealership in whose relevant market area a
franchisor intends to establish a new dealership or to relocate a
current dealership may within 60 days of the receipt of the notice
petition a superior court to enjoin or prohibit the establishment of
the new or relocated dealership within the relevant market area of
the existing dealership. The court or other tribunal of competent
jurisdiction shall enjoin or prohibit the establishment of the new
or relocated dealership within the relevant market area of the
existing dealerships unless the franchisor can prove by a
preponderance of the evidence that the existing dealership is not
providing adequate representation of the line-make motor vehicle in
the existing dealership's relevant market area and that the new or
relocated dealership is necessary to provide the public with
reliable and convenient sales and service within the relevant market
area. The burden of proof in establishing adequate representation
shall be on the franchisor. In determining whether the existing
dealership is providing adequate representation and whether the new
or relocated dealership is necessary, the court or other tribunal
may consider, but is not limited to considering, the following: (1) The impact that the establishment of the new or relocated
dealership will have on consumers, the public interest, and the
existing dealership; provided, however, that financial impact may
be considered only with respect to the existing dealership; (2) The size and permanency of investment reasonably made and the
reasonable obligations incurred by the existing dealership to
perform its obligations under the dealership's franchise
agreement; (3) The reasonably expected market penetration of the line-make
motor vehicle for the relevant market area involved, after
consideration of all factors which may affect such penetration,
including, but not limited to, demographic factors such as age,
income, education, size class preference, product popularity,
retail lease transactions, and other factors affecting sales to
consumers in the relevant market area; (4) Any actions by the franchisor in denying its existing
dealership of the same line make the opportunity for reasonable
growth, market expansion, or relocation, including the
availability of line-make motor vehicles in keeping with the
reasonable expectations of the franchisor in providing an adequate
number of dealerships in the relevant market area; (5) Any attempts by the franchisor to coerce the existing
dealership into consenting to an additional or relocated
dealership of the same line make in the relevant market area; (6) Distance, travel time, traffic patterns, and accessibility
between the existing dealership of the same line make and the
location of the proposed new or relocated dealership; (7) Whether benefits to consumers will likely occur from the
establishment or relocation of the dealership which benefits
cannot be obtained by other geographic or demographic changes or
expected changes in the relevant market area; (8) Whether the existing dealership is in substantial compliance
with its franchise agreement; (9) Whether there is adequate interbrand and intrabrand
competition with respect to the line-make motor vehicles,
including the adequacy of sales and service facilities; (10) Whether the establishment or relocation of the proposed
dealership appears to be warranted and justified based on economic
and market conditions pertinent to dealerships competing in the
relevant market area, including anticipated changes; and (11) The volume of registrations and service business transacted
by the existing dealership and in which would be the relevant
market area of the proposed dealership. (c) This Code section shall not apply: (1) To the addition of a new dealership at a location which is
within a three-mile radius of a former dealership of the same line
make which has been closed for less than two years; (2) To the relocation of an existing dealership to a new location
which is further away from the protesting dealer's location than
the relocated dealer's prior location; or (3) To the relocation of an existing dealership to a new location
which is within a three-mile radius of such dealership's current
location and it has been at such current location at least ten
years. |