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.

(2)

In determining if good cause exists pursuant to subsection (1) of this section, the court shall consider such factors as:

(a)

The amount of business transacted by the dealer as compared to the amount of business available to the dealer.

(b)

The investment necessarily made and obligations necessarily incurred by the franchisee in performance of the franchise.

(c)

The permanency of the investment.

(d)

The adequacy of the franchisee’s new motor vehicle sales and service facilities, equipment and parts.

(e)

The qualifications of the management, sales and service personnel to provide the consumer with reasonably good service and care of new motor vehicles.

(f)

The failure of the franchisee to substantially comply in good faith with those requirements of the franchise that are reasonable.

(3)

Notwithstanding the terms of any franchise or other agreement, a franchisor shall give a franchisee 60 days’ written notice stating the specific reasons for cancellation, termination or noncontinuance of a franchise, provided that a franchisor need only give 30 days’ written notice concerning the following reasons:

(a)

Misrepresentation by the franchisee in applying for the franchise.

(b)

Insolvency of the franchisee, or filing of any petition by or against the franchisee, under any bankruptcy or receivership law.

(c)

Conviction of a felony, provided that conviction after a plea nolo contendere shall be considered a conviction for purposes of this subsection.

(d)

Failure of the dealer to maintain its operation open for business for seven consecutive business days or for eight business days out of any 15-business-day period.

(4)

Notwithstanding the terms of any franchise or other agreement, a franchisee’s unwillingness to agree to a site-control agreement does not constitute good cause under this section.

(5)

Intentionally left blank —Ed.

(a)

If a manufacturer, distributor or importer cancels, terminates or refuses to continue any franchise with the dealer for any reason other than good cause pursuant to the terms of the franchise agreement or for good cause as that term is used in this section, and the manufacturer, distributor or importer did not cancel at the same time a franchise with another motor vehicle dealership of the same line-make within the dealer’s relevant market area, the manufacturer, distributor or importer, or where applicable the manufacturer’s, distributor’s or importer’s successor in interest, shall provide the dealer with the specific reasons why the dealer’s franchise was canceled, terminated or not continued and another dealer’s franchise of the same line-make within the dealer’s relevant market area was retained or renewed.

(b)

The information required by paragraph (a) of this subsection must include the criteria and data used in making the determination to cancel, terminate or not continue, or to retain or renew, the franchise, and must be provided within a reasonable period of time not to exceed 30 days after the manufacturer, distributor or importer gives notice of the cancellation, termination or refusal to continue. [1980 c.3 §3; 2009 c.627 §4; 2011 c.177 §3]

Source: Section 650.140 — Good cause required to terminate dealer franchise; protest of termination; notice; when reasons for termination required, https://www.­oregonlegislature.­gov/bills_laws/ors/ors650.­html.

650.005
Definitions for ORS 650.005 to 650.100
650.010
Franchise sellers required to maintain books and records
650.015
When franchise sale or offer for sale is made in this state
650.020
Liability of franchise seller
650.050
Rules
650.055
General duties and powers of director
650.057
Orders issued under ORS 650.055
650.060
Investigative powers of director
650.065
Injunctive relief
650.070
Director as agent for service of process
650.075
Manner of executing service of process
650.080
When personal service of process required
650.085
Other civil or criminal remedies unaffected
650.095
Civil penalties
650.100
Disposition of civil penalties
650.120
Definitions for ORS 650.120 to 650.170
650.123
Use of protected dealer data
650.130
Prohibited conduct by manufacturer, distributor or importer
650.132
Prohibition of coerced sales of extended service contracts, extended maintenance plans or guaranteed asset protection waivers
650.133
Constructing, altering or remodeling dealer facility
650.140
Good cause required to terminate dealer franchise
650.145
Compensation due dealer upon termination of franchise
650.150
Enjoining establishment of certain franchises or relocation of existing dealership in same market area
650.153
Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer
650.155
Liability of manufacturer for damages to vehicles before delivery to carrier
650.158
Predelivery preparation and warranty service
650.161
Compensation for repairs to vehicles subject to recall
650.162
Transfer, assignment or sale of interest in dealership or franchise
650.165
Prohibited franchise conditions
650.167
Violation of ORS 650.140 or 650.150 as irreparable injury
650.170
Dealer’s remedy
650.200
Definitions for ORS 650.200 to 650.250
650.205
Prohibited conduct by franchisor
650.210
Rights and prohibitions governing relationship between franchisor and franchisee
650.215
Prohibited conduct in offer, sale or purchase of franchise
650.220
Consent of franchisor to sale, assignment or transfer of franchise
650.225
Death of franchisee
650.230
Transfer of franchise to corporation in which franchisee has controlling interest
650.235
Franchisor prohibited from requiring operation of service station in excess of 16 hours per day
650.240
When transfer of motor fuel a sale in commerce
650.245
Principle of good faith
650.250
Injunctive relief or damages
650.300
Definitions for ORS 650.300 to 650.480
650.310
Good cause
650.320
Dealership agreement
650.330
Comparable terms and conditions
650.340
Termination, cancellation or failure to renew
650.350
Dealer’s rights upon termination, cancellation or failure to renew
650.360
Coercion prohibited
650.370
Transfer by dealer
650.380
Dealer’s successor
650.390
Dealer compensation for warranty service
650.400
Recalls
650.410
Dealer’s warranty obligations
650.420
Required disclosures
650.430
Damaged or defective vehicles
650.440
Grantor’s ownership, operation or control of dealership
650.450
Indemnification
650.460
Indemnification
650.470
Remedies
650.480
Remedies
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