Title 32 — MOTOR VEHICLES

32-6B-66 In-transit permits for certain trailer manufacturer's trailers. 32-6B-67 Promulgation of rules for in-transit permits for trailer manufacturer's trailers. 32-6B-68 Repealed 32-6B-69 Franchise agreement--Change of terms--Dealer rights. 32-6B-69.1 Audit by franchisor--Limi…

Any manufacturer of trailers located in the state and who has registered with the department as a manufacturer of trailers may use an in - transit permit to operate any of the manufacturer's trailers upon the streets and highways of this state for in - transit purposes and for tr…

The department shall prescribe, by rules promulgated pursuant to chapter 1-26 , the size, color, material, and design of the trailer manufacturer in - transit permits as provided by §

Source: SL 1997, ch 182 , § 10; SL 2021, ch 130 , § 6.

No franchisor may modify a franchise during the terms of the franchise or upon its renewal if the modification would substantially and adversely affect the vehicle dealer's rights, obligations, investment, or return on investment without giving at least sixty days notice of the p…

A franchisor may reasonably and periodically audit a franchisee to determine the validity of paid claims or chargebacks for customer or dealer incentives. An audit of incentive payments may apply only for a period of one year after the claims are paid to the dealer. The limitatio…

All right, title, and interest in a pool shall be in the state for the benefit of any customer of a participating dealer who suffers any loss caused by the dealer's failure to deliver title, or by fraudulent misrepresentation or by a breach of warranty as to freedom from liens. A…

Members of any incorporated automobile dealers association may join together for the limited purpose of forming a pool of assets to satisfy the bond requirements of §

To implement any increase in the amount of a dealer bond, a dealer, upon renewal of a bond or upon annual renewal of a dealer license, whichever comes first, shall deliver to the department an original bond or a bond rider that is issued by the surety company showing the new bond…

No sell - it - yourself lot operator may engage in the following business activities concerning any vehicle on a sell - it - yourself lot premises, unless licensed in accordance with the provisions of this chapter: (1) Sell, offer to sell, or negotiate the sale of any vehicle; (2…

The owner of a vehicle dealership may appoint by trust, will, or any other valid written instrument a successor to the owner's dealership interest upon the owner's death or incapacity. Unless the franchisor has good cause to refuse to honor the succession, the successor may succe…

If a franchisor believes that good cause exists to refuse to honor the intended succession under § 32-6B-71 , the franchisor shall serve the named successor written notice of refusal to honor the intended succession within sixty days of its receipt of the notice of intended succe…

In order to transfer, assign, or sell a franchise agreement or controlling interest in the dealership to another person, a dealer shall notify the manufacturer or franchisor whose vehicles the dealer is franchised to sell of the dealer's decision to transfer, assign, or sell the …

The notice shall be in writing and shall include: (1) The prospective transferee's name, address, financial qualifications, and business experience; (2) A copy of pertinent agreements regarding the proposed transfer, assignment, or sale; (3) Completed application forms and relate…

Not later than the sixty days after receiving notice and application as provided by §§ 32-6B-73 to 32-6B-78 , inclusive, the manufacturer or franchisor shall determine whether or not the dealer's prospective transferee is qualified and shall send a letter by certified mail, retur…

Approval by a manufacturer or franchisor of an application filed under §§ 32-6B-73 to 32-6B-78 , inclusive, may not be unreasonably withheld. It is unreasonable for a manufacturer or franchisor to reject a prospective transferee who otherwise meets the manufacturer's or franchiso…

A dealer whose application to transfer is rejected may file an objection as provided for in § 32-6B-53 , or the dealer may file a civil proceeding to challenge the denial of the transfer. In an action brought under §§ 32-6B-73 to 32-6B-78 , inclusive, the burden is on the manufac…

The issue in an objection filed under §§ 32-6B-73 to 32-6B-78 , inclusive, either with the department or in a separate civil proceeding, is whether or not the prospective transferee is qualified. The department, or a court in a separate civil proceeding, shall enter an order hold…

In §§ 32-6B-79 to 32-6B-83 , inclusive, the term, manufacturer, includes a representative or a person or entity who is directly or indirectly controlled by, or is under common control with, the manufacturer. For purposes of this section, a person or entity is controlled by a manu…

If an applicant sells or offers to sell new vehicles, the principal place of business shall include a suitable repair shop with space to repair, service, maintain, and recondition one or more vehicles and shall be equipped with ample tools, parts, and accessories. Source: SL 1986…

Except as otherwise provided by §§ 32-6B-79 to 32-6B-83 , inclusive, no manufacturer or franchisor may directly or indirectly: (1) Own an interest in a vehicle dealer or dealership; (2) Operate or control a vehicle dealer or dealership; or (3) Act in the capacity of a vehicle dea…

A manufacturer or franchisor may own an interest in a franchised vehicle dealer, or otherwise control a dealership, for a period not to exceed twelve months from the date the manufacturer or franchisor acquires the dealership if: (1) The person from whom the manufacturer or franc…

For the purpose of broadening the diversity of its dealer body and enhancing opportunities for qualified persons who are part of a group who have historically been underrepresented in its dealer body, or other qualified persons who lack the resources to purchase a dealership outr…

On a showing by a manufacturer or franchisor of good cause, the department may extend the time limit set forth in §

Mar. 9, 2010. 32-6B-85 Civil action for injunction and damages. 32-6B-86 Applicability of SL 2010, ch 156 amendments. 32-6B-87 Dealers permitted to lease space in common area of shopping mall for displaying new vehicles--Restrictions--Exception. 32-6B-88 Off-road vehicle dealer--…

Notwithstanding the terms of any vehicle dealer agreement or waiver to the contrary, any vehicle dealer whose business or property is injured, or is about to be injured, by any violation of §§ 32-6B-45 to 32-6B-83 , inclusive, may bring a civil action to enjoin any such violation…

The provisions of this chapter as amended on March 9, 2010 apply to each vehicle dealer in any written or oral vehicle dealership agreement existing between a dealer and a manufacturer or distributor on March 9, 2010 which has no expiration date and to any subsequent written or o…

A vehicle dealer licensed in this state may lease space in the common area of a shopping mall for the display of new vehicles without a supplemental license if the shopping mall is located within the corporate limits of the municipality where the dealer maintains its principal pl…

Notwithstanding any other provisions of this chapter, a vehicle dealer licensed under this chapter may apply to the department for a special permit to sell or offer to sell an off-road vehicle at an event located outside the county where the dealer’s principal place of business i…

A licensed dealer may take a vehicle to an adjoining county for demonstration purposes. For the purpose of this section, a demonstration is for the purpose of showing the qualities and characteristics common to vehicles of the same or similar models or types in parades. Source: S…

No application may be granted nor a license issued to an applicant for the purpose of selling new vehicles under this chapter until the applicant executes a bond with a corporate surety which has been authorized to do business in this state. The surety shall be in the amount of f…