Oregon Statutes - Chapter 650 - Franchise Transactions - Section 650.320 - Dealership agreement.

(1) A dealership agreement shall:

(a) Contain a provision that the law of this state governs the agreement;

(b) Assign the dealer an area of sales responsibility;

(c) If the dealer is an individual, include the designation of a member of the dealerís family to succeed to the dealerís interests in the dealerís business and dealership agreement upon the dealerís death, incapacity or retirement; and

(d) Inform the dealer of the dealerís obligations:

(A) To perform warranty service;

(B) To prepare products for delivery to the consumer; and

(C) To deliver products to the consumer.

(2) Upon a dealerís request, a grantor shall reconsider the scope of the dealerís area of sales responsibility once a year.

(3) During the term of a dealership agreement, a grantor may not:

(a) Change the dealerís area of sales responsibility; or

(b) Authorize another dealer to sell or lease the same line make in the area of sales responsibility.

(4) Subsection (3)(b) of this section does not apply if:

(a) Good cause exists to authorize another dealer in the same area of sales responsibility; and

(b) The area of sales responsibility will support the existing dealer and the new dealer. [2003 c.377 §3]

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Last modified: August 7, 2008