First Regular Session 115th General Assembly (2007)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
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will appear in that style type in the introductory clause of each SECTION that adds
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between statutes enacted by the 2006 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 181
AN ACT to amend the Indiana Code concerning motor vehicles.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 9-23-3-23; (07)SE0181.1.1. -->
SECTION 1. IC 9-23-3-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 23. It is an unfair
practice for a manufacturer, distributor, officer, or agent to do any of
(1) Require, coerce, or attempt to coerce any new motor vehicle
dealer in Indiana to:
(A) change location of the dealership;
(B) make any substantial alterations to the use of franchises;
(C) make any substantial alterations to the dealership premises
if to do so would be unreasonable or would not be justified by
current economic conditions or reasonable business
considerations. This subdivision does not prevent a manufacturer
or distributor from establishing and enforcing reasonable facility
(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; 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.
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