Title 50, Trade Regulations and Practices

As used in ORS 650.005 to 650.100, unless the context requires otherwise: (1) “Area franchise” means a contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for a valuable consideration, to sell or negotiate the sale of fra…

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 re…

(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. (2) An offer to…

(1) Any person who sells a franchise is liable as provided in subsection (3) of this section to the franchisee if the seller: (a) Employs any device, scheme or artifice to defraud; or (b) Makes any untrue statement of a material fact or omits to state a material fact necessary in…

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]

The Director of the Department of Consumer and Business Services may: (1) Undertake the investigations, including investigations outside this state, that the director considers necessary to: (a) Determine whether a person: (A) Has failed to comply with ORS 650.010; (B) Has engage…

(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. (2) An order issued under ORS 650.055 becomes effective upon service on the person named in the order. (3) ORS 183.413 to 183.470 apply to…

(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…

(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 na…

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: (1) Every person who sells or offers to sell a …

(1) The service referred to in ORS 650.070 shall be made by: (a) Serving the Director of the Department of Consumer and Business Services or a clerk on duty at the Department of Consumer and Business Services a copy of the process, notice or demand, with any papers required by la…

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

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]

(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. (2)(a) The director s…

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] MOTOR VEHICLE DEALERSHIPS

For the purposes of ORS 650.120 to 650.173: (1) “Dealer” means any person that has been issued a vehicle dealer certificate under ORS 822.020 and pursuant to a franchise from a manufacturer, distributor or importer engages in buying, selling, leasing or exchanging new motor vehic…

(1) As used in this section: (a) “Access fee” means a requirement to pay money for access to protected dealer data. (b)(A) “Authorized integrator” means a person with which a dealer has a contractual relationship or to which the dealer otherwise gives express written authorizatio…

Notwithstanding the terms of any franchise or other agreement, a manufacturer, distributor or importer may not: (1) Require or attempt to require a dealer to accept delivery of any motor vehicle, part, accessory or any other commodity that the dealer did not voluntarily order. Th…

(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: (A) Advertise, promote, offer or sell an extended service contract, an extended mainte…

(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 prev…

(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 …

(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. (2) A manufacturer, distributor or i…

(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 relevan…

(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. (2) W…

(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. (2) Whenever a new motor vehicle is damaged in transit, the dealer shall: (a) Notify the manufacturer of the damage…

(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: (a) The dealer’s obligations for predelivery preparation and warranty service on the manufacturer’s, distributor’s or importer…

(1) As used in this section: (a) “Do not drive order” means a notice in which a manufacturer advises owners of a vehicle not to drive the vehicle until the owner has obtained a repair for a safety defect in the vehicle. (b) “Stop sale order” means a notice in which a manufacturer…

(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 for…

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 f…

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 …

(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. (2) The court, in an action brought under ORS 650.120 to 650.173, may …

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: (1) That result…

As used in ORS 650.200 to 650.250, unless the context requires otherwise: (1) “Affiliate” means any person who, other than by means of a franchise, controls, is controlled by or is under common control with any other person. (2) “Company operated station” means a motor fuel servi…

Notwithstanding the terms of any franchise, a franchisor shall not: (1) Require any franchisee to meet unreasonable mandatory minimum sales volume requirements for fuel or other products; (2) Alter the franchise premises during the effective term of the franchise without the cons…

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: (1) Requi…

It is unlawful for any person in connection with the offer, sale or purchase of any franchise directly or indirectly: (1) To sell or offer to sell a franchise in this state by means of any written or oral communication which includes an untrue statement of a material fact. (2) To…

(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. (2) If the franchisor consents to the proposed sale, assignm…

(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 conditio…

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 th…

(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. (2) This section shall not apply:…

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]

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]

(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…

As used in ORS 650.300 to 650.480: (1) “Area of sales responsibility” means the geographic area for which a grantor has granted a dealer the exclusive right to sell recreational vehicles manufactured or distributed by the grantor. (2) “Camper” has the meaning given that term in O…

When determining whether good cause exists for an action, a person shall consider: (1) Concerning the dealer affected by the action: (a) The extent of the dealer’s sales and leases of recreational vehicles in the area of sales responsibility; (b) The nature and extent of the deal…

(1) A dealership agreement shall: (a) Contain a provision that the law of this state governs the agreement; (b) Assign the dealer an area of sales responsibility; (c) If the dealer is an individual, include the designation of a member of the dealer’s family to succeed to the deal…

(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. (2) If dealers compete for the sale or lease of recreational vehicles to the motoring public, a grantor shall offer to sell produc…

(1) Without good cause, a grantor may not: (a) Terminate, cancel or fail to renew a dealership agreement. (b) During the term of a dealership agreement, take an action that has a substantial adverse effect on a dealer’s ability to sell or lease recreational vehicles, including ch…

(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: (a) All new recreational vehicles t…

(1) As used in this section, “coerce” includes threatening to terminate, cancel or fail to renew a dealership agreement without good cause. (2) A grantor may not coerce, or attempt to coerce, a dealer: (a) To purchase a product that the dealer did not order; (b) To enter into an …