(a)Within 90 days of the termination, nonrenewal, or cancellation of any franchise by the manufacturer, pursuant to section 4089 or subdivision 4090(a)(2)(B) of this title or to the termination, nonrenewal, or cancellation of a franchise by the franchisee, the new motor vehicle dealer shall be paid by the manufacturer for the:
(1)dealer cost plus any charges by the manufacturer thereof for distribution, delivery, and taxes paid by the dealer, less all allowances paid to the dealer by the manufacturer for all new and undamaged motor vehicle inventory purchased from the manufacturer or distributor or from another new motor vehicle dealer of the same line-make in the ordinary course of business if the vehicles have 500 miles or less on the odometer, or in the case of a motor home if the veh
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(a) Within 90 days of the termination, nonrenewal, or cancellation of any franchise by the manufacturer, pursuant to section 4089 or subdivision 4090(a)(2)(B) of this title or to the termination, nonrenewal, or cancellation of a franchise by the franchisee, the new motor vehicle dealer shall be paid by the manufacturer for the:
(1) dealer cost plus any charges by the manufacturer thereof for distribution, delivery, and taxes paid by the dealer, less all allowances paid to the dealer by the manufacturer for all new and undamaged motor vehicle inventory purchased from the manufacturer or distributor or from another new motor vehicle dealer of the same line-make in the ordinary course of business if the vehicles have 500 miles or less on the odometer, or in the case of a motor home if the vehicle’s odometer has no more than 1,000 miles above the original factory to dealership delivery mileage, and:
(A) were purchased within the previous 12 months; or
(B) are of the current model year or one-year-prior model year. A motor vehicle shall be “undamaged” under this subsection (a) if any corrected damage to the vehicle does not exceed the amounts set forth in subsection 4087(d) of this title;
(2) dealer cost of each new, unused, undamaged, and unsold part or accessory if such part or accessory is in the current parts catalogue and is still in the original, resaleable merchandising package and acquired from the manufacturer or distributor or from another new motor vehicle dealer of the same line-make in the ordinary course of business;
(3) fair market value of all special tools owned by the dealer that were recommended in writing and designated as special tools and equipment by the manufacturer, distributor, or branch or division thereof and purchased from or at the request of the manufacturer or distributor, if the tools and equipment are in usable and good condition, normal wear and tear excepted;
(4) fair market value of each undamaged sign owned by the dealer that bears a trademark, trade name, or commercial symbol used or claimed by the manufacturer if the sign was purchased from or at the request of the manufacturer, distributor, or branch or division thereof;
(5) cost of transporting, handling, packing, and loading of motor vehicles, parts, signs, and special tools, subject to repurchase by the manufacturer.
(b) In addition to the other payments set forth in this section, if a termination, cancellation, or nonrenewal is premised upon any of the occurrences set forth in subdivision 4090(a)(2)(B) of this title, then the manufacturer shall be liable to the dealer for an amount equivalent to the fair market value of the motor vehicle franchise on the day before the date the franchisor announces the action that results in termination, cancellation, or nonrenewal.
(c) Payment is contingent on the new motor vehicle dealer having clear title to the inventory and other items and having the ability to convey the title to the manufacturer, excepting any liens or encumbrances on the inventory and other items that will be released when the manufacturer pays the new motor vehicle dealer and lien holder for the inventory and other items.
(d) The manufacturer may avoid paying fair market value of the motor vehicle franchise to the dealer under subsection (b) of this section if the franchisor, or another motor vehicle franchisor pursuant to an agreement with the franchisor, offers the franchisee a replacement motor vehicle franchise substantially similar to the existing motor vehicle franchise that takes effect no later than the date of the termination, cancellation, or nonrenewal of the franchisee’s existing motor vehicle franchise.
(e) This section shall not apply to a nonrenewal or termination that is implemented as a result of the sale of the assets or stock of the motor vehicle dealer, unless the franchisor and franchisee otherwise agree in writing. (Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 20, § 38.)