Citations Affected: IC 9-13; IC 9-18; IC 9-23; IC 9-29; IC 9-30.
Synopsis: Various motor vehicle matters. Defines "relevant market
area" for a motor vehicle dealer. Requires a franchisor to give notice to
each new motor vehicle dealer within the relevant market area where
the same line make is represented before the franchisor enters a
franchise establishing or relocating a new motor vehicle dealer within
the relevant market area. Allows a new motor vehicle dealer to bring
a declaratory judgment action to determine whether good cause exists
for the establishing or relocating of a proposed new motor vehicle
dealer. Provides that it is an unfair practice for a motor vehicle
manufacturer or dealer to establish or acquire wholly or partially a
franchisor owned outlet engaged in a business substantially identical
to that of a franchisee within the exclusive territory granted the
franchisee by the franchise agreement. Amends the law on the
succession to a motor vehicle dealership franchise. Provides that a
temporary vehicle delivery permit is valid for 96 hours rather than for
48 hours. Provides for a registration category and fee for certain truck
and tractors with a declared gross weight of greater than 10,000 pounds
and equal to or less than 11,000 pounds. Provides that a court may
require a person to attend and complete a driver improvement course
with an assessment to cover the direct cost of the course that may not
exceed $30 for a classroom presentation or $40 for a distance learning
presentation. Increases the fee for registration of a motorcycle from $15
to $17.
Effective: July 1, 2001; January 1, 2002.
January 9, 2001, read first time and referred to Committee on Public Policy, Ethics and
Veterans Affairs.
February 22, 2001, amended, reported _ Do Pass.
March 5, 2001, read second time, amended, ordered engrossed.
March 6, 2001, engrossed. Read third time, passed. Yeas 90, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles.
dealer's place of business.
(2) With respect to a:
(A) proposed new motor vehicle dealer in a county having
a population that is not more than one hundred thousand
(100,000); or
(B) new motor vehicle dealer who plans to relocate the
dealer's place of business in a county having a population
that is not more than one hundred thousand (100,000);
the area within a radius of ten (10) miles of the intended site
of the proposed or relocated dealer, or the county line,
whichever is closer to the intended site. The ten (10) mile
distance shall be determined by measuring the distance
between the nearest surveyed boundary line of the existing
new motor vehicle dealer's principal place of business and the
nearest surveyed boundary line of the proposed or relocated
new motor vehicle dealer's principal place of business.
current economic conditions or reasonable business
considerations. This subdivision does not prevent a manufacturer
or distributor from establishing and enforcing reasonable facility
requirements.
(2) Require, coerce, or attempt to coerce any new motor vehicle
dealer in Indiana to divest its ownership of or management in
another line or make of motor vehicles that the dealer has
established in its dealership facilities with the prior written
approval of the manufacturer or distributor.
(3) Establish or acquire wholly or partially a franchisor owned
outlet engaged wholly or partially in a substantially identical
business to that of the franchisee within the exclusive territory
granted the franchisee by the franchise agreement or, if no
exclusive territory is designated, competing unfairly with the
franchisee within a reasonable market area. A franchisor is not
considered to be competing unfairly if operating:
(A) a business either temporarily for a reasonable period of
time;
(B) in a bona fide retail operation that is for sale to any
qualified independent person at a fair and reasonable price; or
(C) in a bona fide relationship in which an independent person
or persons have made a significant investment subject to loss
in the business operation and can reasonably expect to acquire
majority ownership or managerial control of the business on
reasonable terms and conditions.
This subsection shall not apply to recreational vehicle
manufacturer franchisors.
to establish an additional dealer or to relocate an existing dealer
within that relevant market area.
(d) Not later than thirty (30) days after:
(1) receiving the notice provided for in subsection (c); or
(2) the end of any appeal procedure provided by the
franchisor;
a new motor vehicle dealer may bring a declaratory judgment
action in the circuit court for the county in which the new motor
vehicle dealer is located to determine whether good cause exists for
the establishing or relocating of a proposed new motor vehicle
dealer. If an action is filed, the franchisor may not establish or
relocate the proposed new motor vehicle dealer until the circuit
court has rendered a decision on the matter. An action brought
under this section shall be given precedence over all other civil
matters on the court's docket.
(e) In determining whether good cause exists for establishing or
relocating an additional new motor vehicle dealer for the same line
make, the court shall take into consideration the existing
circumstances, including the following:
(1) Permanency of the investment.
(2) Effect on the retail new motor vehicle business and the
consuming public in the relevant market area.
(3) Whether it is injurious or beneficial to the public welfare.
(4) Whether the new motor vehicle dealers of the same line
make in that relevant market area are providing adequate
competition and convenient consumer care for the motor
vehicles of that line make in the market area, including the
adequacy of motor vehicle sales and qualified service
personnel.
(5) Whether the establishment or relocation of the new motor
vehicle dealer would promote competition.
(6) Growth or decline of the population and the number of
new motor vehicle registrations in the relevant market area.
(7) The effect on the relocating dealer of a denial of its
relocation into the relevant market area.
the franchise who is not the:
(A) franchisee's spouse;
(B) child;
(C) grandchild;
(D) spouse of a:
(i) child; or
(ii) grandchild;
(E) parent; or
(F) sibling.