Establishment or relocation of dealership in marketing area of dealer in same line and make of vehicles: Notice; protest of dealer; hearing; exemptions.
1. Except as otherwise provided in subsection 2, a manufacturer or distributor shall not enter into a franchise which would establish an additional dealership for new vehicles or relocate an existing dealership within the relevant market area of another dealer in the same line and make of vehicles unless:
(a) The manufacturer or distributor has given written notice of its intention to the Director and to each dealer in the same line and make in the relevant market area; and
(b) Either of the following conditions occurs:
(1) None of the dealers affected files a protest with the Director within 15 days after receiving the notice or within 15 days after the end of any appeal procedure provided in the franchise agreement; or
(2) After a protest has been filed with the Director and the Director has conducted a hearing, the Director finds that there is not good cause for preventing the intended establishment or relocation of a dealership and issues an order authorizing the manufacturer or distributor to establish the additional dealership or relocate the existing dealership.
2. The requirements of this section do not apply to:
(a) Relocation of a dealership if the new location is within 2 miles of the former location and is within the same city and relevant market area as the former location.
(b) The establishment of a branch office of the manufacturer or distributor for the purpose of selling vehicles at a fair, exhibition or similar event if the branch office is not intended to operate for more than 30 days.
(c) Reopening of a dealership which has been out of operation for less than 2 years.
Last modified: February 25, 2006