32-6B-49. Factors which are not cause for termination or noncontinuance of franchise or for establishing additional franchise for same line-make.
210 words·~1 min read·
/sd/title-32/chapter-32-6/32-6b-49A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The following circumstances are not cause for the termination or noncontinuance of a franchise, nor for entering into a franchise for the establishment of an additional dealership in a community for the same line - make:
(1)The change of executive management or ownership by the franchisee, unless the franchisor can show that the change would be detrimental to the representation or reputation of the franchisor's product;
(2)Refusal by the franchisee to purchase or accept delivery of any motor vehicles or vehicles, parts, accessories, or any other commodity or service not ordered by said franchisee;
(3)The sole fact that franchisor desires further penetration of the market;
(4)The fact that the franchisee owns, has an investment in, participates in the management of, or holds a franchise for the sale of another line - make of vehicle, or that the franchisee has established another line - make of vehicle in the same dealership facilities as those of the franchisor, if the franchisee maintains a reasonable line of credit for each line - make of vehicle; or
(5)Refusal by the dealer to participate in any advertising campaign or contest or purchase any promotional materials, display devices, or display decoration or materials which are at the expense of the dealer.