Franchisor indemnification of franchisee or former franchisee. A franchisor shall indemnify a franchisee or former franchisee or a successor in interest to the franchisee or former franchisee for damages, attorney fees, court expenses and related expenses that the franchisee or former franchisee reasonably incurs for a claim

ORS 650.173 — under Chapter 650.

ORS 650.173

(1) That results from a defect in the condition, a characteristic or the design of a motor vehicle, or in a tool or process the franchisor used in manufacturing or assembling a motor vehicle, or in a component, part, accessory or equipment the franchisor assembled into or installed in or on a motor vehicle;

(2) For injury or damages from a service system, procedure or method that the franchisor requires or required the franchisee or former franchisee to use, if the franchisee or former franchisee used the system, procedure or method properly and in accordance with the franchisor’s training or instructions;

(3) For injury or damages from a franchisor’s disclosure or improper use of protected dealer data, as defined in ORS 650.123;

(4) For which the franchisee or former franchisee would have a right of indemnity or contribution against the franchisor under applicable law or under a franchise, even if the franchise expired or was terminated; or

(5) For injury or damages as a result of the franchisee’s or former franchisee’s use of an electronic system for managing protected dealer data, as defined in ORS 650.123, that the franchisor requires or required the franchisee or former franchisee to use and the use violated a federal law or a law of this state, unless the franchisee or former franchisee, or an agent or employee of the franchisee or former franchisee willfully or intentionally used the system in violation of federal law or a law of this state. [2025 c.50 §9]

MOTOR FUEL FRANCHISES