Citations Affected: IC 9-23.
Synopsis: Factory owned franchise limitation. Specifies that it is not
an unfair labor practice for a manufacturer or distributor to establish or
acquire for less than two years a franchisor owned outlet within the
exclusive territory or market area of a franchisee.
Effective: July 1, 2007.
January 11, 2007, read first time and referred to Committee on Commerce, Public Policy
& Interstate Cooperation.
February 8, 2007, amended, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
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; less than two (2) years;
(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.
subsection subdivision shall not apply to recreational
vehicle manufacturer franchisors.