Minnesota Session Laws - 1995, Regular Session

                            CHAPTER 107-H.F.No. 340 
                  An act relating to commerce; motor vehicle sales and 
                  distribution; regulating the establishment and 
                  relocation of dealerships; amending Minnesota Statutes 
                  1994, section 80E.14. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 80E.14, is 
        amended to read: 
           80E.14 [LIMITATIONS ON ESTABLISHING OR RELOCATING 
        DEALERSHIPS.] 
           Subdivision 1.  [NOTIFICATION; PROTEST; HEARING.] In the 
        event that a manufacturer seeks to enter into a franchise 
        establishing an additional new motor vehicle dealership or 
        relocating an existing new motor vehicle dealership within or 
        into a relevant market area where the line make is then 
        represented, the manufacturer shall, in writing, first notify 
        each new motor vehicle dealer in this line make in the relevant 
        market area of the intention to establish an additional 
        dealership or to relocate an existing dealership within or into 
        that market area.  The relevant market area is a radius of ten 
        miles around an existing dealership.  Within 15 days of 
        receiving the notice or within 15 days after the end of any 
        appeal procedure provided by the manufacturer, the new motor 
        vehicle dealership may commence a civil action in a court of 
        competent jurisdiction pursuant to section 80E.17 challenging 
        the establishing or relocating of the new motor vehicle 
        dealership.  An action brought under this section shall be 
        placed on the calendar ahead of other civil actions to be heard 
        and determined as expeditiously as possible.  Thereafter the 
        manufacturer shall not establish or relocate the proposed new 
        motor vehicle dealership unless the court has determined that 
        there is good cause for permitting the establishment or 
        relocation of the motor vehicle dealership.  
           For the purposes of this section, the reopening in a 
        relevant market area of a new motor vehicle dealership within 
        two miles of a location at which a former dealership of the same 
        line make had been in operation within the previous two years 
        shall not be deemed the establishment of a new motor vehicle 
        dealership if the reopening is carried out in good faith and 
        does not violate the provisions of section 80E.13, paragraph (i).
           The relocation of an existing dealer within its area of 
        responsibility as defined in the franchise agreement shall not 
        be subject to this section, if the proposed relocation site is 
        within five miles of its existing location and is not within a 
        radius of five miles of an existing dealer of the same line make.
           A manufacturer's establishment or approval of an additional 
        new motor vehicle sales location by its line make dealer is 
        considered the establishment of a new motor vehicle dealership 
        subject to the requirements of this section. 
           Subd. 2.  [GOOD CAUSE.] In determining whether good cause 
        has been established for entering into or relocating an 
        additional franchise for the same line make, the court shall 
        take into consideration the existing circumstances, including, 
        but not limited to: 
           (a) The extent, nature, and permanency of the investment of 
        the proposed new dealership and the existing motor vehicle 
        dealer dealers of the same line make in the relevant market 
        area; 
           (b) The effect on the retail new motor vehicle business and 
        the consuming public in the relevant market area; 
           (c) Whether it is injurious to existing new motor vehicle 
        dealers of the same line make in the relevant market area and 
        the public welfare for an additional new motor dealership to be 
        established; 
           (d) 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 the line make in the market area including the adequacy of 
        motor vehicle sales and service facilities, equipment, supply of 
        motor vehicle parts, and qualified service personnel; 
           (e) Whether the new motor vehicle dealers of the same line 
        make in the relevant market area are providing adequate market 
        penetration and representation; provided, that good cause shall 
        not be shown solely by a desire for further market penetration; 
           (f) Whether the establishment of an additional new motor 
        vehicle dealership would increase competition, and therefore be 
        in the public interest; 
           (g) The growth or decline in population and new car 
        registrations in the relevant market area; 
           (h) The effect the proposed new dealership would have on 
        the provision of stable, adequate, and reliable sales and 
        service to purchasers of the same line make in the relevant 
        market area; and 
           (i) The effect the proposed new dealership would have on 
        the stability of existing franchises of the same line make in 
        the relevant market area. 
           Presented to the governor April 28, 1995 
           Signed by the governor May 1, 1995, 2:50 p.m.