Oregon Statutes - Chapter 650 - Franchise Transactions

• 650.005   Definitions for ORS 650.005 to 650.100.
  As used in ORS 650.005 to 650.100, unless the context requires otherwise: (1) “Area franchise” means a contract or agreement between a franchisor and a...
• 650.010   Franchise sellers required to maintain books and records; filings with director.
  Every person who offers to sell a franchise in this state shall maintain a complete set of books, records and accounts of any such sale...
• 650.015   When franchise sale or offer for sale is made in this state.
  (1) A sale or offer to sell a franchise is made in this state when an offer to sell is made in this state, or...
• 650.020   Liability of franchise seller; defenses; amount of recovery; attorney fees; joint and several liability; limitation on action; indemnification of corporation; right of contribution.
  (1) Any person who sells a franchise is liable as provided in subsection (3) of this section to the franchisee if the seller: (a) Employs...
• 650.050   Rules.
  In accordance with this section and ORS chapter 183, the Director of the Department of Consumer and Business Services may from time to time make,...
• 650.055   General duties and powers of director.
  The Director of the Department of Consumer and Business Services may: (1) Undertake the investigations, including investigations outside this state, that the director considers necessary...
• 650.057   Orders issued under ORS 650.055.
  (1) The Director of the Department of Consumer and Business Services shall serve an order under ORS 650.055 on the person named in the order....
• 650.060   Investigative powers of director; protection against unreasonable investigation; contempt.
  (1) For the purpose of any investigation or proceeding under ORS 650.005 to 650.100, the Director of the Department of Consumer and Business Services or...
• 650.065   Injunctive relief; attorney fees; appointment of receiver or conservator; conditions of awarding damages and injunctive relief.
  (1) Whenever the Director of the Department of Consumer and Business Services determines that any person has engaged in, or is about to engage in,...
• 650.070   Director as agent for service of process.
  Except as provided in ORS 650.080, the Director of the Department of Consumer and Business Services is an agent for the service of any process,...
• 650.075   Manner of executing service of process; effect of initial service.
  (1) The service referred to in ORS 650.070 shall be made by: (a) Serving the Director of the Department of Consumer and Business Services or...
• 650.080   When personal service of process required.
  The method of service referred to in ORS 650.075 may not be used if personal service can be used. [1973 c.509 §11]
• 650.085   Other civil or criminal remedies unaffected.
  Nothing in ORS 650.005 to 650.100 limits any statutory or common-law rights of a person to bring an action in any court for an act...
• 650.095   Civil penalties.
  (1) In addition to any other liability or penalty provided by law, the Director of the Department of Consumer and Business Services may impose a...
• 650.100   Disposition of civil penalties.
  All penalties recovered under ORS 650.095 shall be paid into the State Treasury and credited to the General Fund and are available for general government...
• 650.120   Definitions for ORS 650.120 to 650.170.
  For the purposes of ORS 650.120 to 650.170: (1) “Dealer” means any person who has been issued a vehicle dealer certificate under ORS 822.020 and...
• 650.130   Prohibited conduct by manufacturer, distributor or importer.
  Notwithstanding the terms of any franchise or other agreement, a manufacturer, distributor or importer may not: (1) Require or attempt to require a dealer to...
• 650.140   Good cause required for terminating dealer franchise; protest of termination; notice before termination.
  (1) Notwithstanding the terms of any franchise or other agreement, it shall be unlawful for any manufacturer, distributor or importer to cancel, terminate or refuse...
• 650.145   Compensation due dealer upon termination of franchise.
  (1) As used in subsection (2) of this section, “fair and reasonable compensation” means the amount originally paid by the dealer minus any incentive payments,...
• 650.150   Enjoining establishment of certain franchises or relocation of existing dealership in same market area; complaint; determination of good cause; notice to existing dealerships; attorney fees.
  (1) A dealer may enjoin a manufacturer, distributor or importer from franchising an additional motor vehicle dealership of the same line-make within the dealer’s relevant...
• 650.153   Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer.
  (1) If a new motor vehicle becomes inoperative prior to being sold to a consumer, the franchisor is liable for the repair of the motor...
• 650.155   Liability of manufacturer for damages to vehicles before delivery to carrier.
  (1) Notwithstanding the terms of any franchise, the manufacturer is liable for any and all damage to new motor vehicles before delivery to a carrier...
• 650.158   Predelivery preparation and warranty service; notice to dealers; schedule of compensation; claims by dealers.
  (1) Each manufacturer, distributor or importer shall specify in writing to each of its dealers in this state: (a) The dealer’s obligations for predelivery preparation...
• 650.160   [1980 c.3 §5; repealed by 1991 c.609 §4]
• 650.162   Transfer, assignment or sale of interest in dealership or franchise; notices; approval of franchisor; right of first refusal.
  (1) To transfer, assign or sell the ownership or management, or any interest in the ownership or management, of a dealer, dealership or franchise, the...
• 650.165   Prohibited franchise conditions.
  It shall be a violation of ORS 650.120 to 650.170 for a franchisor to require a franchisee to agree to the inclusion of a term...
• 650.167   Violation of ORS 650.140 or 650.150 as irreparable injury.
  In any action brought by a dealer against a manufacturer, distributor or importer under ORS 650.120 to 650.170, any violation of ORS 650.140 or 650.150...
• 650.170   Dealer’s remedy.
  (1) Any dealer injured, or threatened with injury, by a manufacturer, distributor or importer as a result of a violation of ORS 650.120 to 650.170...
• 650.200   Definitions for ORS 650.200 to 650.250.
  As used in ORS 650.200 to 650.250, unless the context requires otherwise: (1) “Affiliate” means any person who, other than by means of a franchise,...
• 650.205   Prohibited conduct by franchisor.
  Notwithstanding the terms of any franchise, a franchisor shall not: (1) Require any franchisee to meet unreasonable mandatory minimum sales volume requirements for fuel or...
• 650.210   Rights and prohibitions governing relationship between franchisor and franchisee.
  Without limiting the other provisions of ORS 650.200 to 650.250, the following specific rights and prohibitions shall govern the relationship between the franchisor and the...
• 650.215   Prohibited conduct in offer, sale or purchase of franchise.
  It is unlawful for any person in connection with the offer, sale or purchase of any franchise directly or indirectly: (1) To sell or offer...
• 650.220   Consent of franchisor to sale, assignment or transfer of franchise; conditions for trial franchise.
  (1) Notwithstanding the terms of any franchise, a franchisor shall not prohibit or unreasonably withhold its consent to any sale, assignment or other transfer of...
• 650.225   Death of franchisee; when franchisor required to enter into new franchise with designee of franchisee; notice; qualifications; possession of franchise premises.
  (1) Following the death of a motor fuel retailer franchisee and notwithstanding the terms of the franchise, the franchisor, in the case of leased marketing...
• 650.230   Transfer of franchise to corporation in which franchisee has controlling interest; conditions.
  Notwithstanding the terms of any franchise, no franchisor may prohibit or prevent the sale, assignment or other transfer of a franchise to a corporation in...
• 650.235   Franchisor prohibited from requiring operation of service station in excess of 16 hours per day; exceptions.
  (1) A franchisor, as a condition for renewal of a franchisee lease or a supply agreement, shall not require a franchisee to operate a service...
• 650.240   When transfer of motor fuel a sale in commerce.
  For purposes of ORS 646.040, the transfer of motor fuel from a franchisor to a company operated station or a franchisee shall be a sale...
• 650.245   Principle of good faith.
  Without limiting the other provisions of ORS 650.200 to 650.250, the principle of good faith shall govern the relationship and dealings of the parties with...
• 650.250   Injunctive relief or damages; limitation on commencement of action; attorney fees.
  (1) Any person who is injured in the person’s business or property by reason of a violation of ORS 650.200 to 650.250 may sue therefor...
• 650.300   Definitions for ORS 650.300 to 650.480.
  As used in ORS 650.300 to 650.480: (1) “Area of sales responsibility” means the geographic area for which a grantor has granted a dealer the...
• 650.310   Good cause; determination.
  When determining whether good cause exists for an action, a person shall consider: (1) Concerning the dealer affected by the action: (a) The extent of...
• 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...
• 650.330   Comparable terms and conditions; grantor sales to public.
  (1) As used in this section, “terms and conditions” includes rebates, discounts or any other program that may affect the ultimate price of a product....
• 650.340   Termination, cancellation or failure to renew; notice; grounds.
  (1) Without good cause, a grantor may not: (a) Terminate, cancel or fail to renew a dealership agreement. (b) During the term of a dealership...
• 650.350   Dealer’s rights upon termination, cancellation or failure to renew.
  (1) Upon the termination or cancellation of or failure to renew a dealership agreement by the grantor, the grantor shall, at the dealer’s request and...
• 650.360   Coercion prohibited.
  (1) As used in this section, “coerce” includes threatening to terminate, cancel or fail to renew a dealership agreement without good cause. (2) A grantor...
• 650.370   Transfer by dealer.
  (1) A dealer shall give a grantor 30 days’ notice in writing before the dealer transfers an interest in a dealership agreement or ownership of...
• 650.380   Dealer’s successor.
  (1) A grantor shall permit a dealer who is an individual to change the dealer’s designation of a member of the dealer’s family to succeed...
• 650.390   Dealer compensation for warranty service; disapproval of warranty service claims; recall notice requirements.
  (1) A warrantor shall, for a warranty provided by the warrantor: (a) Provide reasonable compensation to a dealer for diagnostic and repair services; (b) Allow...
• 650.400   Recalls.
  (1) A grantor or warrantor shall: (a) Assume the liability imposed upon a dealer because of defects in products the grantor or warrantor supplied to...
• 650.410   Dealer’s warranty obligations.
  (1) A dealer shall: (a) Perform warranty service in a timely and competent manner on a recreational vehicle that the dealer did not sell or...
• 650.420   Required disclosures.
  (1) Before delivering a new recreational vehicle to a dealer, the grantor shall notify the dealer of: (a) Uncorrected damage to the vehicle. (b) Corrected...
• 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...
• 650.440   Grantor’s ownership, operation or control of dealership.
  (1) A grantor may not sell a recreational vehicle to or through a dealer without having entered into a dealership agreement with the dealer. (2)...
• 650.450   Indemnification; grantor and dealer.
  (1) Notwithstanding any dealership agreement: (a) A grantor shall indemnify a dealer against and hold the dealer harmless from any cost, loss or damage, including...
• 650.460   Indemnification; warrantor and dealer.
  (1) Notwithstanding any agreement to the contrary: (a) A warrantor shall indemnify a dealer against and hold the dealer harmless from any cost, loss or...
• 650.470   Remedies; grantor and dealer; attorney fees.
  (1) A dealer injured by a grantor’s violation of ORS 650.320, 650.330, 650.340, 650.350, 650.360, 650.370, 650.380, 650.400, 650.420, 650.430, 650.440 or 650.450 may bring...
• 650.480   Remedies; warrantor and dealer; attorney fees.
  (1) A dealer injured by a warrantor’s violation of ORS 650.390, 650.400, 650.410 or 650.460 may bring a civil action against the warrantor to recover...

Last modified: August 7, 2008