Oregon Statutes - Chapter 650 - Franchise Transactions - Section 650.430 - Damaged or defective vehicles.

(1) Within three days of receiving a damaged or defective recreational vehicle from the grantor, the dealer shall:

(a) Notify the grantor in writing of the damage or defect; and

(b)(A) Ask the grantor to permit the dealer to repair the damage or correct the defect at the expense of the grantor; or

(B) Reject the vehicle.

(2) A dealer may reject a vehicle if, within 10 days of receiving the dealerís notice, the grantor does not permit a dealer to repair the damage or correct the defect at the grantorís expense.

(3) If a dealer rejects a vehicle, the grantor must repurchase the vehicle within 10 business days. The repurchase price shall include the costs of delivery and financing necessary to keep the vehicle in stock.

(4) Rejection of a vehicle releases the dealer from any obligation to the grantor to pay for the vehicle.

(5) A dealership agreement may extend the term by which a dealer must notify the grantor of a damaged or defective vehicle. [2003 c.377 §14]

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Last modified: August 7, 2008