63-17-141 - Duties of dealer and manufacturer or distributor upon termination or nonrenewal of franchise agreement.
§ 63-17-141. Duties of dealer and manufacturer or distributor upon termination or nonrenewal of franchise agreement.
(1) A new motor vehicle dealer shall return property, including but not limited to, vehicle inventory, parts, equipment, tools and signs as permitted under this section or as set forth in the franchise agreement to the manufacturer or distributor within ninety (90) days of the effective date of any termination or nonrenewal of a franchise. The manufacturer or distributor shall supply the new vehicle dealer with instructions on the method by which the new vehicle dealer must return the property to the manufacturer or distributor. Within sixty (60) days of tender of the property to the manufacturer or distributor, the manufacturer or distributor shall repurchase from the new vehicle dealer and remit payment to the new vehicle dealer for the following:
(a) Any new, undamaged and unsold motor vehicle inventory of the current or prior model year, that has been acquired from the manufacturer or distributor, including up to five (5) dealer transfers acquired prior to notification of termination or nonrenewal of a franchise.
(b) All new, unused, undamaged parts listed in the current price catalog and in the original, resalable merchandising packages and in unbroken lots acquired from a manufacturer or distributor or a source approved or recommended by the manufacturer or distributor at the prices listed in the current parts catalog less applicable allowances plus five percent (5%) of the catalog value of the part for the cost of packing and returning the parts to the manufacturer or distributor. Reconditioned or core parts shall be valued at their core value, price listed in the current parts catalog, or the amount paid for expedited return of core parts, whichever is higher.
(c) Any special tools offered for sale during the four (4) years preceding termination, and each trademark or trade name bearing signs which were recommended or required by the manufacturer or distributor at fair market value at the time the notice of termination or nonrenewal is given.
(2) The dealer shall provide evidence of good clear title upon return of the inventory. Any payment owed the dealer is subject to offset of any obligations owed by the dealer to the manufacturer.
(3) This section shall not apply to motor homes.
Sources: Laws, 1994, ch. 399, § 1, eff from and after July 1, 1994.