§ 44-20-428 — Reimbursement for disapproving sale

A manufacturer or
distributor shall pay reasonable attorney fees, not to exceed the usual and
customary fees charged for the transfer of a franchise, and reasonable expenses
that are incurred by the proposed owner or transferee before the manufacturer or
distributor exercised its right of first refusal in negotiating and implementing the
contract for the proposed change of ownership or the transfer of assets. Payment
of attorney fees and expenses is not required if the claimant has failed to submit an
accounting of attorney fees and expenses within twenty days after the receipt of
the manufacturer's or dealer's written request for an accounting. An expense
accounting may be requested by the manufacturer or distributor before exercising
its right of first refusal.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 131, � 2, effective October 1.