Sec. 19.
(1) Notwithstanding the terms, provisions, or conditions of any dealer agreement, a manufacturer or distributor shall indemnify and hold harmless its dealers against any judgment for damages or settlement agreed to in writing by the manufacturer, including, but not limited to, court costs and reasonable attorney's fees of the new motor vehicle dealer arising solely out of the complaints, claims, or actions from defects, which relate to the manufacture, assembly, or design of vehicles, parts, or accessories, or other functions by the manufacturer or distributor, beyond the control of the dealer, including, without limitation, the selection by the manufacturer or distributor of parts or components for the vehicle, or any damages to merchandise occurring in transit to the dealer if the carrier is designated by the manufacturer or distributor. If the complaint, claim, or action contains independent allegations against the dealer, the manufacturer shall pay only that portion of the costs, fees, and judgment or settlement which is directly related to the manufacture, assembly, or design of the vehicle, parts or accessories, or other functions of the manufacturer beyond the control of the dealer.
(2) A dealer shall have no right to indemnification or attorney's fees as provided in subsection (1) unless the dealer has given reasonable notice in writing of the complaint, claim, or action to the manufacturer or distributor.
History: 1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 1983, Act 188, Imd. Eff. Nov. 1, 1983
Last modified: October 10, 2016