§ 9-32-13-28 — Dealer requesting payment for manufacturer or distributor following termination, cancellation, or nonrenewal of franchise; discontinuance of line make

Indiana § 9-32-13-28

• Jurisdiction: Indiana
• Title 9: MOTOR VEHICLES
• Art. 32: DEALER SERVICES
• Ch. 13: Unfair Practices

Text

(a) This section applies when a dealer
requests payment from a manufacturer or distributor following:
(1) the termination, cancellation, or nonrenewal by the
manufacturer or distributor of a franchise between the dealer and
the manufacturer or distributor; or
(2) the discontinuance of a line make by the manufacturer or
distributor.
(b) Not more than ninety (90) days after a manufacturer or
distributor receives a request for payment from a dealer described in
subsection (a), the manufacturer or distributor shall pay to the dealer
the following amounts for items that are in the dealer's inventory or
possession at the time of termination, cancellation, nonrenewal, or
discontinuance, that the dealer delivers to the manufacturer or
distributor, and as to which the dealer conveys clear title to the
manufacturer or distributor under subsection (c):
(1) For:
(A) current model year motor vehicles; or
(B) immediately preceding model year motor vehicles with less
than three hundred (300) miles;
acquired from the manufacturer or distributor in the usual course
of business, the cost at acquisition less any discounts or
allowances received from the manufacturer or distributor.
(2) For all new, unused, and undamaged parts in original
packaging that were purchased from the manufacturer or
distributor:
(A) the cost listed in the manufacturer's or distributor's parts
catalog in effect at the time of termination, cancellation,
nonrenewal, or discontinuance; minus
(B) any allowances authorized by the manufacturer or
distributor.
(3) For required special tools, equipment, or computer equipment
that was used for reporting financial data to the manufacturer or
distributor, used solely for the franchise being terminated, and
purchased by the dealer during the two (2) years immediately
preceding the termination, cancellation, nonrenewal, or
discontinuance, fair market value.
(4) For signs that bear a trademark or trade name, that the dealer
was required by the manufacturer or distributor to purchase, and
that the dealer purchased within three (3) years of the termination,
cancellation, nonrenewal, or discontinuance, fair market value.
For purposes of this subsection, fair market value is determined on the
date of termination, cancellation, nonrenewal, or discontinuance.
(c) Title to items described in subsection (b) transfers from a dealer
to a manufacturer or distributor on the date of termination, cancellation,
nonrenewal, or discontinuance. The dealer has an enforceable security
interest in the transferred items.
(d) It is an unfair practice for a manufacturer or distributor to violate
this section.

Legislative History

As added by P.L.152-2013, SEC.4.