32-6B-82. Exceptions for the purpose of broadening diversity of dealer body.
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/sd/title-32/chapter-32-6/32-6b-82A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For the purpose of broadening the diversity of its dealer body and enhancing opportunities for qualified persons who are part of a group who have historically been underrepresented in its dealer body, or other qualified persons who lack the resources to purchase a dealership outright, but for no other purpose, a manufacturer or franchisor may temporarily own an interest in a dealership if the manufacturer's or franchisor's participation in the dealership is in a bona fide relationship with a franchised vehicle dealer who:
(1)Has made a significant investment in the dealership, subject to loss;
(2)Has an ownership interest in the dealership; and
(3)Operates the dealership under a plan to acquire full ownership of the dealership within a reasonable time and under reasonable terms and conditions.