(A)As used in this section:
(1)"Stop-sale or do-not-drive order" means a notification issued by a motor vehicle manufacturer to its franchised motor vehicle dealers stating that certain used motor vehicles in inventory shall not be sold, either at retail or wholesale, leased, or driven due to a federal safety recall or a federal or state emissions recall.
(2)"Average trade-in value" means the approximate monetary value for a used motor vehicle that is indicated in an independent third-party guide, based on the year, make, and model of a vehicle.
(B)(1) Pursuant to division (B)(2) of this section, a franchisor shall compensate a franchisee of not less than one and twenty-five hundredths per cent of the average trade-in value for a used motor vehicle that is the subject of a stop-sale
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(A) As used in this section:
(1) "Stop-sale or do-not-drive order" means a notification issued by a motor vehicle manufacturer to its franchised motor vehicle dealers stating that certain used motor vehicles in inventory shall not be sold, either at retail or wholesale, leased, or driven due to a federal safety recall or a federal or state emissions recall.
(2) "Average trade-in value" means the approximate monetary value for a used motor vehicle that is indicated in an independent third-party guide, based on the year, make, and model of a vehicle.
(B)(1) Pursuant to division (B)(2) of this section, a franchisor shall compensate a franchisee of not less than one and twenty-five hundredths per cent of the average trade-in value for a used motor vehicle that is the subject of a stop-sale or do-not-drive order if both of the following apply:
(a) The franchisee is authorized to sell or perform recall repairs on motor vehicles that are the same line-make as the subject motor vehicle ;
(b) The parts or remedy that are necessary to perform the recall service or repair on the subject motor vehicle are not reasonably available to perform that service or repair within thirty days of the franchisor issuing the recall notice and associated stop-sale or do-not-drive order.
(2) The compensation described in division (B)(1) of this section shall be paid per month, or prorated for a portion of the month. The compensation shall commence on the thirtieth day after the recall notice and stop-sale or do-not-drive order was issued. The compensation shall end on the earlier of the following dates:
(a) The date that the remedy or repair parts that are necessary to resolve the recall notice and stop-sale or do-not-drive order are available to the franchisee for the subject motor vehicle;
(b) The franchisee sells, trades, or otherwise disposes of the subject motor vehicle.
(3) A franchisor is not required to compensate a franchisee for more than the total average trade-in value of the subject motor vehicle.
(C) Division (B) of this section does not apply to motor vehicles purchased by a franchisee after the date the recall notice or stop-sale or do-not-drive order was issued or to motor vehicles that were purchased outside of the ordinary course of business.
(D) A franchisor may compensate a franchisee under a national recall compensation program if the compensation under that program equals or exceeds the compensation specified in division (B) of this section or per any agreement between the franchisor and franchisee.
(E) A franchisor shall not attempt to recover all or any other portion of its costs for compensating a franchisee in accordance with this section either through a reduction in the amount due to a franchisee or through a separate charge, surcharge, or other imposition related to the costs of recalled vehicles, parts, diagnostic work, or other services. Nothing in division (E) of this section prohibits a franchisor from changing its prices in the ordinary course of business or prohibits a franchisor from charging back a franchisee for an unnecessary or improperly performed repair.
(F) A franchisor may determine the manner and method in which a franchisee demonstrates the inventory status of a motor vehicle that is eligible for compensation in accordance with this section. The manner, method, and type of information required shall not be unduly burdensome for the franchisee.
(G) Any remedy provided to a franchisee in accordance with this section shall be the exclusive remedy provided to that franchisee for compensation related to a used motor vehicle that is the subject of a stop-sale or do-not-drive order. A remedy provided in accordance with this section shall not be combined with any other state or federal recall compensation remedy for used motor vehicles subject to a stop-sale or do-not-drive order.
(H) This section does not apply to franchisors or franchisees who deal in recreational vehicles.
Last updated August 15, 2025 at 11:51 AM