(a)It is an unfair practice for a manufacturer,
distributor, officer, or agent to do any of the following:
(1)Require, coerce, or attempt to coerce a new motor vehicle
dealer in Indiana to:
(A)change the location of the dealership;
(B)make any substantial alterations to the use of franchises; or
(C)make any substantial alterations to the dealership premises
or facilities;
if to do so would be unreasonable or would not be justified by
current economic conditions or reasonable business
considerations. This subdivision does not prevent a manufacturer
or distributor from establishing and enforcing reasonable facility
requirements. However, a new motor vehicle dealer may elect to
use for the facility alteration locally sourced materials or supplies
that are substantially similar to those r
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(a) It is an unfair practice for a manufacturer,
distributor, officer, or agent to do any of the following:
(1) Require, coerce, or attempt to coerce a new motor vehicle
dealer in Indiana to:
(A) change the location of the dealership;
(B) make any substantial alterations to the use of franchises; or
(C) make any substantial alterations to the dealership premises
or facilities;
if to do so would be unreasonable or would not be justified by
current economic conditions or reasonable business
considerations. This subdivision does not prevent a manufacturer
or distributor from establishing and enforcing reasonable facility
requirements. However, a new motor vehicle dealer may elect to
use for the facility alteration locally sourced materials or supplies
that are substantially similar to those required by the
manufacturer or distributor, subject to the approval of the
manufacturer or distributor. A manufacturer or distributor may
not require a dealer to purchase a product or service from a
vendor designated by the manufacturer or distributor if the dealer
selects a vendor that provides products or services that are
substantially similar to that of the vendor designated by the
manufacturer or distributor, meets reasonable program standards
or requirements of the manufacturer or distributor, and is subject
to the approval of the manufacturer or distributor.
(2) Require, coerce, or attempt to coerce a new motor vehicle
dealer in Indiana to divest ownership of or management in
another line or make of motor vehicles that the dealer has
established in its dealership facilities with the prior written
approval of the manufacturer or distributor.
(3) Establish or acquire wholly or partially a franchisor owned
outlet engaged wholly or partially in a substantially identical
business to that of the franchisee within the exclusive territory
granted the franchisee by the franchise agreement or, if no
exclusive territory is designated, competing unfairly with the
franchisee within a reasonable market area. A franchisor is not
considered to be competing unfairly or in violation of IC 9-32-11-20 if operating:
(A) a business for less than two (2) years;
(B) in a bona fide retail operation that is for sale to any
qualified independent person at a fair and reasonable price; or
(C) in a bona fide relationship in which an independent person
has made a significant investment subject to loss in the business
operation and can reasonably expect to acquire majority
ownership or managerial control of the business on reasonable
terms and conditions.
(4) Require a dealer, as a condition of granting or continuing a
franchise, approving the transfer of ownership or assets of a new
motor vehicle dealer, or approving a successor to a new motor
vehicle dealer to:
(A) construct a new dealership facility;
(B) modify or change the location of an existing dealership;
(C) grant the manufacturer or distributor control rights over any
real property owned, leased, controlled, or occupied by the
dealer; or
(D) unreasonably participate in a facility program sponsored by
the manufacturer or distributor that requires fueling or electric
vehicle charging fixed assets that are not reasonably necessary
for the retail sale and service of new motor vehicles that the
dealer is authorized to sell and service.
(5) Prohibit a dealer from representing more than one (1) line
make of motor vehicles from the same or a modified facility if:
(A) reasonable facilities exist for the combined operations;
(B) the dealer meets reasonable capitalization requirements for
the original line make and complies with the reasonable
facilities requirements of the manufacturer or distributor; and
(C) the prohibition is not justified by the reasonable business
considerations of the manufacturer or distributor.
Subdivisions (3) through (5) do not apply to recreational vehicle
manufacturer franchisors.
(b) This section does not prohibit the enforcement of a voluntary
agreement between the manufacturer or distributor and the franchisee
where separate and valuable consideration has been offered and
accepted.