§ 56-15-65 — Requiring change of location or alteration of dealership.

(A) It is unlawful for any manufacturer, distributor, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to change the location of the motor vehicle dealership or to make any substantial alterations to the dealer's premises or facilities unless: (1) the manufacturer demonstrates that such change or alteration is reasonable in light of the current market and economic conditions; and (2) the motor vehicle dealer has been provided written assurance from the manufacturer or distributor of a sufficient supply of motor vehicles to justify such change or alteration. (B)(1) It is unlawful for any manufacturer, distributor, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to change the location of the dealership, or to make any substantial alterations to its dealership premises or facilities if: (a) the dealer changed the location of the dealership or made substantial alterations to the same signs, franchisor image elements, or other improvements to its premises or facilities within the preceding ten years; and (b) the change in location or alteration was made pursuing compliance with a facility initiative or program that was sponsored or supported by the manufacturer, factory branch, distributor, or distributor branch, with the approval of the manufacturer, factory branch, distributor, or distributor branch. (2) This subsection does not apply if the required facility alteration or improvement is necessary to comply with health and safety requirements or are necessary in order to sell and service a motor vehicle offered for sale by the dealer.

Legislative History

HISTORY: 2009 Act No. 52, SECTION 1, eff upon approval (became law without the Governor's signature on June 3, 2009); 2021 Act No. 31 (S.510), SECTION 9, eff August 4, 2021. Editor's Note 2021 Act No. 31, SECTION 14, provides as follows: "SECTION 14. This act takes effect ninety days after approval by the Governor and applies to all current and future franchises and other agreements in existence between any franchisee located in this State and a franchisor as of the effective date of this act." Effect of Amendment 2021 Act No. 31, SECTION 9, inserted the (A) designator, and added (B).