Chapter 650 — Chapter 650

ORS 650.005 Definitions for ORS 650.005 to 650.100. As used in ORS 650.005 to 650.100, unless the context requires otherwise

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ORS 650.010 Franchise sellers required to maintain books and records; filings with director. Every person who offers to sell a franchise in this state shall maintain a complete set of books, records and accounts of any such sale and the disposition of the proceeds thereof, and shall, at such times as the Director of the Department of Consumer and Business Services may require, file in the office of the director a report, stating the names of each person to whom a franchise has been sold by the person filing the report, the amount of the proceeds derived and the disposition. [1973 c.509 §3]

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ORS 650.015 When franchise sale or offer for sale is made in this state. (1) A sale or offer to sell a franchise is made in this state when an offer to sell is made in this state, or an offer to buy is accepted in this state, or, if the franchisee is domiciled in this state, the franchised business is or will be operated in this state

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ORS 650.020 Liability of franchise seller; defenses; amount of recovery; attorney fees; joint and several liability; limitation on action; indemnification of corporation; right of contribution. (1) Any person who sells a franchise is liable as provided in subsection (3) of this section to the franchisee if the seller

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ORS 650.050 Rules. In accordance with this section and ORS chapter 183, the Director of the Department of Consumer and Business Services may from time to time make, amend and rescind such rules as are necessary to carry out the provisions of ORS 650.005 to 650.100. [1973 c.509 §5]

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ORS 650.055 General duties and powers of director. The Director of the Department of Consumer and Business Services may

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ORS 650.057 Orders issued under ORS 650.055. (1) The Director of the Department of Consumer and Business Services shall serve an order under ORS 650.055 on the person named in the order

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ORS 650.060 Investigative powers of director; protection against unreasonable investigation; contempt. (1) For the purpose of any investigation or proceeding under ORS 650.005 to 650.100, the Director of the Department of Consumer and Business Services or any officer designated by the director may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the director considers relevant or material to the investigation or proceeding

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ORS 650.065 Injunctive relief; attorney fees; appointment of receiver or conservator; conditions of awarding damages and injunctive relief. (1) Whenever the Director of the Department of Consumer and Business Services determines that any person has engaged in, or is about to engage in, any act or practice which the director believes would give rise to liability under ORS 650.020, the director may bring suit in the name of the State of Oregon in any circuit court of this state to enjoin the acts or practices. Upon a proper showing, the court shall grant a permanent or temporary injunction or restraining order and may appoint a receiver or conservator for the defendant or the defendant’s assets. The court shall not require the director to post a bond. The court may award reasonable attorney fees to the director if the director prevails in an action under this section. The court may award reasonable attorney fees to a defendant who prevails in an action under this section if the court determines that the director had no objectively reasonable basis for asserting the claim or no reasonable basis for appealing an adverse decision of the trial court

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ORS 650.070 Director as agent for service of process. Except as provided in ORS 650.080, the Director of the Department of Consumer and Business Services is an agent for the service of any process, notice or demand required to be served in a proceeding under ORS 650.005 to 650.100 for

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ORS 650.075 Manner of executing service of process; effect of initial service. (1) The service referred to in ORS 650.070 shall be made by

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ORS 650.080 When personal service of process required. The method of service referred to in ORS 650.075 may not be used if personal service can be used. [1973 c.509 §11]

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ORS 650.085 Other civil or criminal remedies unaffected. Nothing in ORS 650.005 to 650.100 limits any statutory or common-law rights of a person to bring an action in any court for an act involved in the sale of franchises, or the right of the state to punish a person for a violation of any law. [1973 c.509 §12]

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ORS 650.095 Civil penalties. (1) In addition to any other liability or penalty provided by law, the Director of the Department of Consumer and Business Services may impose a civil penalty on a person for violation of a rule adopted under ORS 650.050 or an order issued under ORS 650.055

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ORS 650.100 Disposition of civil penalties. All penalties recovered under ORS 650.095 shall be paid into the State Treasury and credited to the General Fund and are available for general government expenses. [2005 c.339 §5]

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ORS 650.120 Definitions for ORS 650.120 to 650.173. For the purposes of ORS 650.120 to 650.173

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ORS 650.123 Use of protected dealer data; prohibitions; liabilities. (1) As used in this section

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ORS 650.130 Prohibited conduct by manufacturer, distributor or importer. Notwithstanding the terms of any franchise or other agreement, a manufacturer, distributor or importer may not

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ORS 650.132 Prohibition on coercing dealers to take certain actions. (1)(a) A manufacturer, distributor or importer may not, through any of the methods described in paragraph (b) of this subsection, directly or indirectly coerce or attempt to coerce a dealer to

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ORS 650.133 Constructing, altering or remodeling dealer facility; prohibitions; exceptions; purchasing goods or services from specific vendor; intellectual property infringement. (1)(a) Except as provided in paragraph (b) of this subsection, a manufacturer, distributor or importer may not require a dealer to construct a new dealer facility or materially alter or remodel an existing dealer facility within seven years after the date on which the dealer previously constructed, materially altered or remodeled the existing dealer facility if the existing dealer facility complies with the manufacturer’s, distributor’s or importer’s approved brand image standards or plans that existed at the time the dealer constructed, materially altered or remodeled the existing dealer facility

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ORS 650.140 Good cause required to terminate dealer franchise; protest of termination; notice; when reasons for termination required. (1) Notwithstanding the terms of any franchise or other agreement, it is unlawful for any manufacturer, distributor or importer to cancel, terminate or refuse to continue any franchise without showing good cause, provided the dealer protests the termination by filing a complaint in court of competent jurisdiction within the time period specified in subsection (3) of this section

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ORS 650.145 Compensation due dealer upon termination of franchise. (1) As used in subsection (2) of this section, “fair and reasonable compensation” means the amount a dealer originally paid for vehicles minus any incentive payments, model close-out allowances or any other programs that apply to the vehicles

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ORS 650.150 Enjoining establishment of certain franchises or relocation of existing dealership in same market area; complaint; determination of good cause; when offer of new franchise or relocated dealership required; notice to existing or former dealerships; attorney fees. (1) A dealer or former dealer may enjoin a manufacturer, distributor or importer, or the manufacturer’s, distributor’s or importer’s successor in interest, from franchising an additional motor vehicle dealership of the same line-make within the dealer’s or former dealer’s relevant market area for good cause, provided that the dealer files a complaint with a court of competent jurisdiction within 60 days of receiving the notice specified in subsection (6) of this section. For purposes of this section, “relevant market area” has the meaning given that term in ORS 650.120, but other factors such as actual sales and service area must be considered

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ORS 650.153 Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer. (1) If a new motor vehicle becomes inoperative prior to being sold to a consumer, the franchisor is liable for the repair of the motor vehicle if the motor vehicle is inoperative due to a mechanical failure that is not the result of negligence on the part of the franchisee

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ORS 650.155 Liability of manufacturer for damages to vehicles before delivery to carrier. (1) Notwithstanding the terms of any franchise, the manufacturer is liable for any and all damage to new motor vehicles before delivery to a carrier or transporter

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ORS 650.158 Predelivery preparation and warranty service; notice to dealers; schedule of compensation; determination; claims by dealers; audits of dealers’ claims. (1) Each manufacturer, distributor or importer shall specify in writing to each of the manufacturer’s, distributor’s or importer’s dealers in this state

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ORS 650.160 [1980 c.3 §5; repealed by 1991 c.609 §4]

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ORS 650.161 Compensation for repairs to vehicles subject to recall; claims for compensation; prohibited practices; exclusivity of remedy. (1) As used in this section

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ORS 650.162 Transfer, assignment or sale of interest in dealership or franchise; notices; approval of franchisor; right of first refusal. (1) To transfer, assign or sell the ownership or management, or any interest in the ownership or management, of a dealer, dealership or franchise, the dealer shall notify the franchisor of the decision to transfer, assign or sell. The notice must include completed application forms and related information the manufacturer, distributor or importer generally uses to conduct a review of transfers, assignments or sales and must include a copy of all agreements regarding the transfer, assignment or sale

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ORS 650.165 Prohibited franchise conditions. It shall be a violation of ORS 650.120 to 650.173 for a franchisor to require a franchisee to agree to the inclusion of a term or condition in a franchise, or in any lease or agreement ancillary or collateral to a franchise, as a condition to the offer, grant or renewal of such franchise, lease or agreement, that

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ORS 650.167 Violation of ORS 650.140 or 650.150 as irreparable injury. In any action brought by a dealer against a manufacturer, distributor or importer under ORS 650.120 to 650.173, any violation of ORS 650.140 or 650.150 by a manufacturer, distributor or importer may be considered an irreparable injury to the dealer for determining if a temporary restraining order should be issued. [1991 c.609 §2]

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ORS 650.170 Dealer’s remedy. (1) Any dealer injured, or threatened with injury, by a manufacturer, distributor or importer as a result of a violation of ORS 650.120 to 650.173 may sue to enjoin such illegal, or threatened illegal conduct

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ORS 650.173 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

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ORS 650.200 Definitions for ORS 650.200 to 650.250. As used in ORS 650.200 to 650.250, unless the context requires otherwise

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ORS 650.205 Prohibited conduct by franchisor. Notwithstanding the terms of any franchise, a franchisor shall not

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ORS 650.210 Rights and prohibitions governing relationship between franchisor and franchisee. Without limiting the other provisions of ORS 650.200 to 650.250, the following specific rights and prohibitions shall govern the relationship between the franchisor and the franchisee. It shall be unlawful and a violation of ORS 650.200 to 650.250 for any franchisor to

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ORS 650.215 Prohibited conduct in offer, sale or purchase of franchise. It is unlawful for any person in connection with the offer, sale or purchase of any franchise directly or indirectly

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ORS 650.220 Consent of franchisor to sale, assignment or transfer of franchise; conditions for trial franchise. (1) Notwithstanding the terms of any franchise, a franchisor shall not prohibit or unreasonably withhold its consent to any sale, assignment or other transfer of the franchise by a franchisee to a qualified third party

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ORS 650.225 Death of franchisee; when franchisor required to enter into new franchise with designee of franchisee; notice; qualifications; possession of franchise premises. (1) Following the death of a motor fuel retailer franchisee and notwithstanding the terms of the franchise, the franchisor, in the case of leased marketing premises, shall enter into a new franchise with the designee of the motor fuel retailer franchisee on the terms and conditions then generally being extended by the franchisor to similarly situated motor fuel retailers if

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ORS 650.230 Transfer of franchise to corporation in which franchisee has controlling interest; conditions. Notwithstanding the terms of any franchise, no franchisor may prohibit or prevent the sale, assignment or other transfer of a franchise to a corporation in which the franchisee has and maintains a controlling interest if the franchisee offers in writing personally to guarantee the performance of the obligations under the franchise. In the event of a sale, assignment or transfer under this section, the franchisor may require the corporation to assume in writing all of the franchisee’s obligations to the franchisor under the franchise and may require the franchisee to maintain a controlling interest in the corporation and actively operate the marketing premises during the time that the franchise with the corporation continues. [1987 c.917 §4]

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ORS 650.235 Franchisor prohibited from requiring operation of service station in excess of 16 hours per day; exceptions. (1) A franchisor, as a condition for renewal of a franchisee lease or a supply agreement, shall not require a franchisee to operate a service station for the sale of motor fuel to the public for ultimate consumption in excess of 16 hours per day

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ORS 650.240 When transfer of motor fuel a sale in commerce. For purposes of ORS 646.040, the transfer of motor fuel from a franchisor to a company operated station or a franchisee shall be a sale in commerce. [1987 c.917 §6]

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ORS 650.245 Principle of good faith. Without limiting the other provisions of ORS 650.200 to 650.250, the principle of good faith shall govern the relationship and dealings of the parties with each other. [1987 c.917 §8]

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ORS 650.250 Injunctive relief or damages; limitation on commencement of action; attorney fees. (1) Any person who is injured in the person’s business or property by reason of a violation of ORS 650.200 to 650.250 may sue therefor in any court having jurisdiction in the county where the defendant resides or is found, or any agent resides or is found, or where service may be obtained, for injunctive relief or to recover the damages sustained by the person. Any action brought pursuant to this section shall be commenced within four years after the cause of action accrued. Except as provided in subsection (2) of this section, the court may award reasonable attorney fees to the prevailing party in an action under this section

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ORS 650.300 Definitions for ORS 650.300 to 650.480. As used in ORS 650.300 to 650.480

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ORS 650.310 Good cause; determination. When determining whether good cause exists for an action, a person shall consider

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ORS 650.320 Dealership agreement. (1) A dealership agreement shall

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ORS 650.330 Comparable terms and conditions; grantor sales to public. (1) As used in this section, “terms and conditions” includes rebates, discounts or any other program that may affect the ultimate price of a product

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ORS 650.340 Termination, cancellation or failure to renew; notice; grounds. (1) Without good cause, a grantor may not

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ORS 650.350 Dealer’s rights upon termination, cancellation or failure to renew. (1) Upon the termination or cancellation of or failure to renew a dealership agreement by the grantor, the grantor shall, at the dealer’s request and within 30 days of the termination, cancellation or failure to renew, purchase from the dealer

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