§ 31-5.1-4.2. Establishing new dealerships and relocating existing dealerships.
(a) In the event that a manufacturer seeks to enter into a franchise establishing an additional
new motor vehicle dealership, adding an additional location for an existing new motor
vehicle dealership, or relocating an existing new motor vehicle dealership within
or into a relevant market area where the same line or make is then represented, except
when the corporation operating the new motor vehicle dealership contains one or more
officers who were also officers of a dealership operating at the same location as
the new motor vehicle dealership immediately prior to the establishment of the new
motor vehicle dealership, the manufacturer shall in writing by certified mail first
notify the department and each new motor vehicle dealer in the same line or make in
the relevant market area of the intention to establish an additional dealership to
add an additional location for an existing new motor vehicle dealership, or to relocate
an existing dealership within or into that market area. Within thirty (30) days of
receiving notice or within thirty (30) days after the end of any appeal procedure
provided by the manufacturer, any affected new motor vehicle dealership may file with
the department a protest to the establishing or relocating of the new motor vehicle
dealership or adding an additional location for an existing new motor vehicle dealership.
When a protest is filed, the department shall inform the manufacturer that a timely
protest has been filed, and that the manufacturer shall not establish or relocate
the proposed new motor vehicle dealership or add the proposed additional location
for an existing new motor vehicle dealership until the department has held a hearing,
nor until the department has determined that there is good cause for not permitting
the new motor vehicle dealership. For the purposes of this section, the reopening
in a relevant market area of a new motor vehicle dealership shall be deemed the establishment
of an additional new motor vehicle dealership.
(b) In determining whether good cause has been established for entering into or relocating
an additional franchise for the same line or make, or adding an additional location
for an existing new motor vehicle dealership, the department shall take into consideration
the existing circumstances, including, but not limited to:
(1) Permanence of the investment of the existing new motor vehicle dealer(s) in the community;
(2) Whether the new motor vehicle dealers of the same line or make in that relevant market
area are providing adequate consumer care for the motor vehicles of the line or make
in the market area which shall include the adequacy of motor vehicle sales and service
facilities, equipment, supply of motor vehicle parts, and qualified service personnel;
(3) Whether there is reasonable evidence that after the granting of the new motor vehicle
dealership, that the market would support all of the dealerships of that line or make
in the relevant market area;
(4) Whether it is injurious to the public welfare for an additional new motor vehicle
dealership to be established;
(5) The growth or decline in population and new motor vehicle registrations during the
past five (5) years in the relevant market area;
(6) Whether the manufacturer is motivated principally by good faith to establish an additional
or new motor vehicle dealer and not by non-economic considerations;
(7) Whether the manufacturer has denied its existing new motor vehicle dealers of the
same line or make the opportunity for reasonable growth, market expansion, or relocation;
(8) The reasonably expected or anticipated vehicle market for the relevant market area,
including demographic factors such as age of population, income, size class preference,
product popularity, retail lease transactions, or other factors affecting sales to
consumers in the relevant market area;
(9) Growth or decline in population, density of population, and new car registrations
in the relevant market area;
(10) Distance, travel time, traffic patterns, and accessibility between the existing new
dealership of the same new line make and the location of the proposed new or relocated
dealership;
(11) The amount of business transacted by existing new motor vehicle dealers of the line
or make when compared with the amount of business available to them;
(12) Whether the existing new motor vehicle dealers of the line or make are receiving vehicles
and parts in quantities promised by the manufacturer, factory branch or distributor
and on which promised quantities existing new motor vehicle dealers based their investment
and scope of operations.
(c) Any parties to a hearing by the department concerning the establishing or relocating
of a new motor vehicle dealership or adding an additional location for an existing
new motor vehicle dealership shall have a right to a review of the decision in a court
of competent jurisdiction.
(d) At any hearing conducted by the department under this section, the manufacturer or
dealer seeking to establish an additional new motor vehicle dealership, relocate an
existing new motor vehicle dealership, or add an additional location for an existing
new motor vehicle dealership shall bear the burden of proof in establishing that good
cause exists for it.
(e) Every person, firm or corporation who prior to the retail sale of a motor vehicle,
converts or otherwise assembles, installs or affixes a body, cab or special equipment
to a chassis or who adds to, subtracts from or modifies a previously assembled or
manufactured motor vehicle shall be required to comply with the requirements of this
section.