2006 Minnesota Statutes

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 30 days of receiving the notice or within 30
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,
service, or parts 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 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.
History: 1981 c 59 s 15; 1Sp1981 c 4 art 4 s 3; 1982 c 452 s 8; 1985 c 34 s 5; 1987 c 150 s
1,2; 1995 c 107 s 1; 2000 c 409 s 2