Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 472-S.F.No. 1801 
           An act relating to commerce; motor vehicle sale and 
          distribution; regulating payments upon franchise 
          termination, cancellation, or nonrenewal; amending 
          Minnesota Statutes 1990, section 80E.09, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 80E.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENTS.] Upon the termination, 
cancellation, or nonrenewal 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 as an ongoing new motor vehicle dealership 
for a period of one year from the effective date of the 
termination, cancellation, or nonrenewal, or until the 
facilities are leased or sold, whichever is less, if the dealer 
owns the facilities.  If the facilities are leased from a lessor 
other than the manufacturer, a sum equivalent to rent for the 
remainder of the term of the lease or one year, whichever is 
less.  Payment under this clause shall not be required if the 
termination, cancellation, or nonrenewal 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 dealer has exhibited a course of 
conduct constituting fraud with respect to the manufacturer or 
the general public.  Nothing in this subdivision relieves the 
dealer from the obligation to mitigate damages upon termination, 
cancellation, or nonrenewal.  Any amount due under this 
paragraph is reduced to the extent the dealership makes other 
use of the property, sells, leases or subleases the property, or 
secures release from a lease.  If the dealer rejects reduction 
of facility rental value compensation as described in this 
paragraph, the manufacturer is entitled to use of the premises 
for the period for which compensation is to be provided or the 
dealer may elect to receive no compensation; 
    (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, cancellation, or nonrenewal.  The manufacturer 
shall reimburse the dealer for 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. 
    Presented to the governor April 14, 1992 
    Signed by the governor April 15, 1992, 1:17 p.m.