Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                         CHAPTER 57--H.F.No. 609
           An act relating to commerce; motor vehicle sales and 
          distribution; requiring certain payments to be made 
          upon termination of motor vehicle franchises; amending 
          Minnesota Statutes 1982, section 80E.09, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 80E.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENTS.] Upon the termination or 
cancellation of any franchise, the new motor vehicle dealer 
shall, in the time prescribed, be allowed fair and reasonable 
compensation by the manufacturer for the following items: 
     (a) New motor vehicle inventory which was originally 
acquired from the manufacturer, as limited in clause (f); 
     (b) Equipment and furnishings if the new motor vehicle 
dealer purchased them from the manufacturer; 
     (c) Special tools; 
     (d) Supplies, including accessories and parts, purchased 
from the manufacturer; 
     (e) A sum equal to the current fair rental value of the 
dealership facilities for a period of one year from the 
effective date of the termination or cancellation, or the 
remainder of the term of the lease, whichever is less.  Payment 
under this clause shall not be required if the termination or 
cancellation was for good cause based on a conviction or plea of 
nolo contendere of the dealer or one of its principal owners for 
a crime which constitutes a felony as described in section 
609.02, subdivision 2, or if it has been demonstrated that the 
has exhibited a course of conduct constituting fraud with 
respect to the manufacturer or the general public; 
    (f) Fair and reasonable compensation as applied to 
paragraphs (a) and (d) means the manufacturer shall reimburse 
the dealer for 100 percent of the net cost to the dealer, 
including transportation, of all new current model year motor 
vehicle inventory acquired from the manufacturer which has not 
been materially altered or substantially damaged, and all new 
motor vehicle inventory not of the current model year which has 
not been materially altered or substantially damaged; provided 
the noncurrent model year vehicles were acquired from the 
manufacturer and drafted on the dealer's financing source or 
paid for within 120 days prior to the effective date of the 
termination or cancellation.  The manufacturer shall reimburse 
the dealer for 85 100 percent of the current net prices on motor 
vehicle accessories and parts, including superseded parts listed 
in current price lists or catalogues plus five percent of the 
current net price of all accessories and parts returned to 
compensate the dealer for handling, packing, and loading the 
parts. 
     Sec. 2.  [EFFECTIVE DATE.] 
     Section 1 is effective the day following final enactment. 
    Approved April 22, 1983