Manufacturer or distributor requiring changes in franchise or
dealership
Sec. 23. It is an unfair practice for a manufacturer, distributor,
officer, or agent to do any of the following:
(1) Require, coerce, or attempt to coerce any new motor vehicle
dealer in Indiana to:
(A) change location of the dealership;
(B) make any substantial alterations to the use of franchises;
or
(C) make any substantial alterations to the dealership
premises or facilities;
if to do so would be unreasonable or would not be justified by
current economic conditions or reasonable business
considerations. This subdivision does not prevent a
manufacturer or distributor from establishing and enforcing
reasonable facility requirements.
(2) Require, coerce, or attempt to coerce any new motor vehicle
dealer in Indiana to divest its ownership of or management in
another line or make of motor vehicles that the dealer has
established in its dealership facilities with the prior written
approval of the manufacturer or distributor.
(3) Establish or acquire wholly or partially a franchisor owned
outlet engaged wholly or partially in a substantially identical
business to that of the franchisee within the exclusive territory
granted the franchisee by the franchise agreement or, if no
exclusive territory is designated, competing unfairly with the
franchisee within a reasonable market area. A franchisor is not
considered to be competing unfairly if operating:
(A) a business either temporarily for a reasonable period of
time;
(B) in a bona fide retail operation that is for sale to any
qualified independent person at a fair and reasonable price;
or
(C) in a bona fide relationship in which an independent
person or persons have made a significant investment subject
to loss in the business operation and can reasonably expect
to acquire majority ownership or managerial control of the
business on reasonable terms and conditions.
This subsection shall not apply to recreational vehicle
manufacturer franchisors.
As added by P.L.152-1999, SEC.2. Amended by P.L.118-2001,
SEC.3.
Last modified: May 27, 2006