Relocation of new motor vehicle dealers
Sec. 24. (a) This section does not apply to the relocation of a new
motor vehicle dealer to a location that is not more than two (2) miles
from its established place of business.
(b) This section does not apply to the reopening or replacement in
a relevant market area of a closed dealership that has been closed
within the preceding year, if the established place of business of the
reopened or replacement dealer is within two (2) miles of the
established place of business of the closed dealership.
(c) Before a franchisor enters into a franchise establishing or
relocating a new motor vehicle dealer within a relevant market area
where the same line make is represented, the franchisor shall give
written notice to each new motor vehicle dealer of the same line
make in the relevant market area of the franchisor's intention to
establish an additional dealer or to relocate an existing dealer within
that relevant market area.
(d) Not later than thirty (30) days after:
(1) receiving the notice provided for in subsection (c); or
(2) the end of any appeal procedure provided by the franchisor;
a new motor vehicle dealer may bring a declaratory judgment action
in the circuit court for the county in which the new motor vehicle
dealer is located to determine whether good cause exists for the
establishing or relocating of a proposed new motor vehicle dealer. If
an action is filed, the franchisor may not establish or relocate the
proposed new motor vehicle dealer until the circuit court has
rendered a decision on the matter. An action brought under this
section shall be given precedence over all other civil matters on the
court's docket.
(e) In determining whether good cause exists for establishing or
relocating an additional new motor vehicle dealer for the same line
make, the court shall take into consideration the existing
circumstances, including the following:
(1) Permanency of the investment.
(2) Effect on the retail new motor vehicle business and the
consuming public in the relevant market area.
(3) Whether it is injurious or beneficial to the public welfare.
(4) Whether the new motor vehicle dealers of the same line
make in that relevant market area are providing adequate
competition and convenient consumer care for the motor
vehicles of that line make in the market area, including the
adequacy of motor vehicle sales and qualified service
personnel.
(5) Whether the establishment or relocation of the new motor
vehicle dealer would promote competition.
(6) Growth or decline of the population and the number of new
motor vehicle registrations in the relevant market area.
(7) The effect on the relocating dealer of a denial of its
relocation into the relevant market area.
As added by P.L.118-2001, SEC.4.
Last modified: May 27, 2006