USA Statutes : oregon
Title : TITLE 50 TRADE REGULATIONS AND PRACTICES
Chapter : Chapter 650 Franchise Transactions
As used in ORS
650.005 to 650.100, unless the context requires otherwise:

(1) “Area franchise” means a contract or agreement between a
franchisor and a subfranchisor whereby the subfranchisor is granted the
right, for a valuable consideration, to sell or negotiate the sale of
franchises in the name or on behalf of the franchisor.

(2) “Control” means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of
a person, whether through the ownership of voting securities, by
contract, or otherwise.

(3) “Director” means Director of the Department of Consumer and
Business Services.

(4) “Franchise” means a contract or agreement, whether oral or
written, by which:

(a) A franchisee is granted the right to engage in the business of
offering, selling or distributing goods or services under a marketing
plan or system prescribed in substantial part by a franchisor;

(b) The operation of the franchisee’s business pursuant to such
plan or system is substantially associated with the franchisor’s
trademark, service mark, trade name, logotype, advertising or other
commercial symbol designating the franchisor of such plan or system; and

(c) The franchisee is required to give to the franchisor a valuable
consideration for the right to transact business pursuant to the plan or
system. Payment for trading stamps in itself is not consideration for the
right to transact business pursuant to a plan or system.

(5) “Franchisee” means a person to whom a franchise is sold by a
franchisor.

(6) “Franchisor” means a person, including a subfranchisor, who
sells a franchise for $100 or more to a franchisee or subfranchisor.

(7) “Offer” or “offer to sell” includes every attempt to offer to
dispose of, or solicitation of an offer to buy, a franchise or interest
in a franchise for value.

(8) “Sale” or “sell” includes every contract or agreement of sale
of, contract to sell, or disposition of a franchise or interest in a
franchise for value, but does not include the renewal or extension of an
existing franchise without any material change in the terms thereof if
there is no interruption in the operation of the franchised business by
the franchisee.

(9) “Subfranchisor” means a person to whom an area franchise is
sold by a franchisor. [1973 c.509 §1; 1987 c.414 §77; 1993 c.744 §16]Every person who offers to sell a franchise in
this state shall maintain a complete set of books, records and accounts
of any such sale and the disposition of the proceeds thereof, and shall,
at such times as the Director of the Department of Consumer and Business
Services may require, file in the office of the director a report,
stating the names of each person to whom a franchise has been sold by the
person filing the report, the amount of the proceeds derived and the
disposition. [1973 c.509 §3](1) A sale or offer to sell a franchise is made in this state when
an offer to sell is made in this state, or an offer to buy is accepted in
this state, or, if the franchisee is domiciled in this state, the
franchised business is or will be operated in this state.

(2) An offer to sell a franchise is made in this state when the
offer either originates from this state or is directed by the offeror to
this state and received at the place to which it is directed. An offer to
sell is accepted in this state when acceptance is communicated to the
offeror in this state. Acceptance is communicated to the offeror in this
state when the offeree directs it to the offeror in this state reasonably
believing the offeror to be in this state and it is received at the place
to which it is directed.

(3) An offer to sell a franchise is not made in this state merely
because:

(a) The publisher circulates or there is circulated on behalf of
the publisher in this state any bona fide newspaper or other publication
of general, regular and paid circulation outside this state during the
past 12 months; or

(b) A radio or television program originating outside this state is
received in this state. [1973 c.509 §2](1) Any
person who sells a franchise is liable as provided in subsection (3) of
this section to the franchisee if the seller:

(a) Employs any device, scheme or artifice to defraud; or

(b) Makes any untrue statement of a material fact or omits to state
a material fact necessary in order to make the statements made, in light
of the circumstances under which they were made, not misleading.

(2) It shall be an affirmative defense to any action for legal or
equitable remedies brought under subsection (1) of this section if the
franchisee knew of the untruth or omission.

(3) The franchisee may recover any amounts to which the franchisee
would be entitled upon an action for a rescission. Except as provided in
subsection (4) of this section, the court may award reasonable attorney
fees to the prevailing party in an action under this section.

(4) The court may not award attorney fees to a prevailing defendant
under the provisions of subsection (3) of this section if the action
under this section is maintained as a class action pursuant to ORCP 32.

(5) Every person who directly or indirectly controls a franchisor
liable under subsection (1) of this section, every partner, officer or
director of the franchisor, every person occupying a similar status or
performing similar functions, and every person who participates or
materially aids in the sale of a franchise is also liable jointly and
severally to the same extent as the franchisor, unless the nonseller did
not know, and, in the exercise of reasonable care, could not have known,
of the existence of the facts on which the liability is based.

(6) An action may not be commenced under this section more than
three years after the sale.

(7) A corporation which is liable under ORS 650.005 to 650.100
shall have a right of indemnification against any of its principal
executive officers, directors and controlling persons whose willful
violation of any provision of ORS 650.005 to 650.100 gave rise to the
liability. All persons liable under ORS 650.005 to 650.100 shall have a
right of contribution against all other persons similarly liable, based
upon each person’s proportionate share of the total liability, except:

(a) A person willfully misrepresenting or failing to disclose shall
not have any right of contribution against any other person guilty merely
of a negligent violation; and

(b) A principal executive officer, director, or controlling person
shall not have any right of contribution against the corporation to which
the person sustains that relationship. [1973 c.509 §4; 1979 c.284 §185;
1995 c.696 §40](Administration) In accordance with this section and ORS chapter 183,
the Director of the Department of Consumer and Business Services may from
time to time make, amend and rescind such rules as are necessary to carry
out the provisions of ORS 650.005 to 650.100. [1973 c.509 §5] The Director of the
Department of Consumer and Business Services may:

(1) Undertake the investigations, including investigations outside
this state, that the director considers necessary to:

(a) Determine whether a person:

(A) Has failed to comply with ORS 650.010;

(B) Has engaged in, is engaging in or is about to engage in an act
or practice that would give rise to liability under ORS 650.020; or

(C) Has violated, is violating or is about to violate a rule of the
director adopted under ORS 650.050.

(b) Aid in the enforcement of ORS 650.005 to 650.100 or in the
formulation of rules and forms that carry out ORS 650.005 to 650.100.

(2) Require a person to file a statement in writing, under oath or
otherwise, concerning the matter being investigated.

(3) When the director has reason to believe that a person has
failed to comply with ORS 650.010, issue an order to comply.

(4) When the director has reason to believe that a person has
engaged in, is engaging in or is about to engage in an act or practice
that would give rise to liability under ORS 650.020, issue an order to
cease and desist from the act or practice.

(5) When the director has reason to believe that a person has
violated, is violating or is about to violate a rule of the director
adopted under ORS 650.050, issue an order to cease and desist from the
violation.

(6) Publish information concerning any:

(a) Failure to comply with ORS 650.010;

(b) Act or practice that gives rise to liability under ORS 650.020;

(c) Violation of a rule of the director adopted under ORS 650.050;
or

(d) Person who:

(A) Fails to comply with ORS 650.010;

(B) Commits an act or practice that gives rise to liability under
ORS 650.020; or

(C) Violates a rule of the director adopted under ORS 650.050.
[1973 c.509 §6; 2005 c.339 §1] (1) The Director of the
Department of Consumer and Business Services shall serve an order under
ORS 650.055 on the person named in the order.

(2) An order issued under ORS 650.055 becomes effective upon
service on the person named in the order.

(3) ORS 183.413 to 183.470 apply to orders issued under ORS 650.055.

(4) Notwithstanding subsection (3) of this section, a person may
not obtain a hearing on the order unless the person requests the hearing
within 20 days of service of the order.

(5) A person who does not request a contested case hearing may not
obtain judicial review of the order.

(6) The director may vacate or modify an order issued under ORS
650.055 at any time. A modified order is effective upon service on the
person named in the order. [2005 c.339 §3](1) For the purpose of any
investigation or proceeding under ORS 650.005 to 650.100, the Director of
the Department of Consumer and Business Services or any officer
designated by the director may administer oaths and affirmations,
subpoena witnesses, compel their attendance, take evidence, and require
the production of any books, papers, correspondence, memoranda,
agreements, or other documents or records which the director considers
relevant or material to the investigation or proceeding.

(2) Any person who is served with a subpoena or is subject to an
order to give testimony orally or in writing or to produce books, papers,
correspondence, memoranda, agreements or other documents or records as
provided in ORS 650.005 to 650.100 may apply to any circuit court in
Oregon for protection against abuse or hardship in the manner provided in
ORCP 36 C.

(3) Except to the extent judicial relief may have been granted
under subsection (2) of this section, if any person disobeys a subpoena
issued under subsection (1) of this section, or if any witness refuses to
testify or produce evidence before the director on any matter on which
the witness may be lawfully interrogated, the circuit court of any
county, upon application of the director, shall compel obedience by
proceedings for contempt as in the case of disobedience of the
requirements of a subpoena issued from such court or a refusal to testify
therein. [1973 c.509 §7; 1977 c.358 §10; 1979 c.284 §186](1)
Whenever the Director of the Department of Consumer and Business Services
determines that any person has engaged in, or is about to engage in, any
act or practice which the director believes would give rise to liability
under ORS 650.020, the director may bring suit in the name of the State
of Oregon in any circuit court of this state to enjoin the acts or
practices. Upon a proper showing, the court shall grant a permanent or
temporary injunction or restraining order and may appoint a receiver or
conservator for the defendant or the defendant’s assets. The court shall
not require the director to post a bond. The court may award reasonable
attorney fees to the director if the director prevails in an action under
this section. The court may award reasonable attorney fees to a defendant
who prevails in an action under this section if the court determines that
the director had no objectively reasonable basis for asserting the claim
or no reasonable basis for appealing an adverse decision of the trial
court.

(2) The director may include in any suit authorized by subsection
(1) of this section a claim for any amount the franchisee could recover
under ORS 650.020 or a claim for damages on behalf of other persons
injured by any act or practice against which an injunction or restraining
order is sought. The court may award appropriate relief to the franchisee
or such other persons if the court finds that enforcement of the right of
the franchisee or other persons by private civil action or suit, whether
by class action or otherwise, would be so burdensome or expensive as to
be impractical. [1973 c.509 §8; 1981 c.897 §85; 1995 c.696 §41] Except as
provided in ORS 650.080, the Director of the Department of Consumer and
Business Services is an agent for the service of any process, notice or
demand required to be served in a proceeding under ORS 650.005 to 650.100
for:

(1) Every person who sells or offers to sell a franchise in this
state; and

(2) Every person, whether a resident or nonresident of this state,
who has engaged in conduct that is subject to a proceeding under ORS
650.020. [1973 c.509 §9](1) The service referred to in ORS 650.070 shall be made by:

(a) Serving the Director of the Department of Consumer and Business
Services or a clerk on duty at the Department of Consumer and Business
Services a copy of the process, notice or demand, with any papers
required by law to be delivered in connection with the service, or by
mailing to the department a copy of the process, notice or demand by
certified or registered mail, and a fee of $2 for each party being served;

(b) Transmittal of notice of the service on the director, together
with one copy of each of the papers required by law to be delivered in
connection with the service, by certified mail to the person being served:

(A) At such person’s address, if any, as it appears in the records
of the director; and

(B) At any address the use of which the person initiating the
proceedings knows or, on the basis of reasonable inquiry, has reason to
believe is most likely to result in actual notice to the person to be
served; and

(c) Filing with the appropriate court or other body, as part of the
return of service, the return mailing receipt and an affidavit of the
person initiating the proceedings that there has been compliance with
this section and ORS 650.070.

(2) After completion of initial service upon the director, no
additional documents need be served upon the director to maintain
jurisdiction in the same proceeding or to give notice of any motion or
provisional process. [1973 c.509 §10; 1987 c.603 §27] The method of
service referred to in ORS 650.075 may not be used if personal service
can be used. [1973 c.509 §11] Nothing in ORS
650.005 to 650.100 limits any statutory or common-law rights of a person
to bring an action in any court for an act involved in the sale of
franchises, or the right of the state to punish a person for a violation
of any law. [1973 c.509 §12] (1) In addition to any other liability or
penalty provided by law, the Director of the Department of Consumer and
Business Services may impose a civil penalty on a person for violation of
a rule adopted under ORS 650.050 or an order issued under ORS 650.055.

(2)(a) The director shall impose a civil penalty under this section
in the manner provided in ORS 183.745.

(b)(A) The civil penalty may not exceed $10,000 for each violation.

(B) In the case of a continuing violation:

(i) Each day that the violation continues is a separate violation.

(ii) The civil penalty may not exceed $50,000. [2005 c.339 §4] All penalties recovered
under ORS 650.095 shall be paid into the State Treasury and credited to
the General Fund and are available for general government expenses. [2005
c.339 §5]MOTOR VEHICLE DEALERSHIPS For the purposes of
ORS 650.120 to 650.170:

(1) “Dealer” means any person who has been issued a vehicle dealer
certificate under ORS 822.020 and pursuant to a franchise from a
manufacturer, distributor or importer engages in buying, selling, leasing
or exchanging new motor vehicles.

(2) “Dealership” means the location from which a dealer buys,
sells, leases, trades, stores, takes on consignment or in any other
manner deals in new motor vehicles.

(3) “Distributor” means a person who sells or distributes motor
vehicles other than motor homes to motor vehicle dealers.

(4) “Fleet owner” means a person in this state who at one time buys
or leases for use in a business:

(a) 15 or more motor vehicles with a gross vehicle weight rating of
less than 8,500 pounds; or

(b) 50 or more vehicles with a gross vehicle weight rating of 8,500
pounds or more.

(5) “Franchise” means a contract or agreement under which:

(a) The franchisee is granted the right to sell, lease and exchange
new motor vehicles manufactured, distributed or imported by the
franchisor;

(b) The franchise is an independent business operating as a
component of a distribution or marketing system prescribed in substantial
part by the franchisor;

(c) The franchisee’s business is substantially associated with the
trademark, trade name, commercial symbol or advertisements designating
the franchisor or the products distributed by the franchisor;

(d) The franchisee’s business is substantially reliant on the
franchisor for a continued supply of motor vehicles, parts and
accessories;

(e) The franchisee is granted the right to perform warranty repairs
authorized by the franchisor; and

(f) The franchisee is granted the right to sell, install and
exchange parts, equipment and accessories manufactured, distributed or
imported by the franchisor for use in or on motor vehicles.

(6) “Franchisee” means a dealer to whom a franchise is granted.

(7) “Franchisor” means a manufacturer, distributor or importer who
grants a franchise to a dealer.

(8) “Importer” means a person who transports or arranges for the
transportation of any foreign manufactured new motor vehicle into the
United States for sale in this state.

(9) “Manufacturer” means a person who manufactures or assembles
motor vehicles or who manufactures or installs on previously assembled
truck chassis special bodies or equipment, other than motor homes, that
when installed forms an integral part of the motor vehicle and
constitutes a major manufacturing alteration and which completed unit is
owned by the manufacturer.

(10) “Manufacturer’s suggested retail price” means the retail price
of the new motor vehicle suggested by the manufacturer, including the
retail delivered price suggested by the manufacturer for each accessory
or item of optional equipment physically attached to the new motor
vehicle at the time of delivery to the dealer that is not included within
the retail price suggested by the manufacturer for the new motor vehicle
without the accessory or optional equipment.

(11) “Motor home” means a motor vehicle that is designed to provide
temporary living quarters and is built into an integral part of, or is
permanently attached to, a self-propelled motor vehicle chassis or van.
The vehicle must contain permanently installed independent life support
systems and provide at least four of the following facilities:

(a) Cooking;

(b) Refrigeration or ice box;

(c) Self-contained toilet;

(d) Heating or air conditioning;

(e) A potable water supply system including a faucet and sink; or

(f) A separate 110-120 volt electrical power supply or liquid
petroleum gas supply.

(12) “Motor vehicle” means:

(a) A self-propelled device, other than a motor home, used:

(A) For transportation of persons or property upon a public
highway; or

(B) In construction; or

(b) A trailer with a gross vehicle weight rating of 20,000 pounds
or more that is used for commercial transportation on a public highway.

(13) “Qualified vendor” means a person with a contract or agreement
to sell goods or services to a manufacturer, distributor or importer.

(14) “Relevant market area” means:

(a) For a dealer primarily of motor vehicles with a gross vehicle
weight rating of less than 8,500 pounds, a circular area around an
existing dealership of:

(A) Not less than a 10-mile radius from the dealership site;

(B) Not less than a 15-mile radius from the dealership site if the
population is less than 250,000 within a 10-mile radius from the existing
dealership and 150,000 or more within a 15-mile radius from the existing
dealership;

(C) Not less than a 20-mile radius from the dealership site if the
population is less than 150,000 within a 15-mile radius from the existing
dealership; or

(D) The area of sales and service responsibility determined under
the franchise agreement if the area is larger than the areas provided for
in this paragraph.

(b) For a dealer primarily of motor vehicles with a gross vehicle
weight rating of 8,500 pounds or more, a circular area around an existing
dealership of:

(A) Not less than a 25-mile radius from the dealership site; or

(B) The area of sales and service responsibility determined under
the franchise agreement if the area is larger than the area provided for
in subparagraph (A) of this paragraph.

(15) “Replacement dealer” means any person who, at a dealership
where the former dealer was franchised by the same manufacturer,
distributor or importer, has been issued a vehicle dealer certificate
under ORS 822.020 and pursuant to a franchise from a manufacturer,
distributor or importer engages in buying, selling, leasing or exchanging
new motor vehicles. [1980 c.3 §1; 1993 c.216 §1; 1999 c.660 §1; 2001
c.216 §1; 2001 c.825 §1; 2003 c.411 §1; 2005 c.211 §1]Notwithstanding the terms of any franchise or other agreement,
a manufacturer, distributor or importer may not:

(1) Require or attempt to require a dealer to accept delivery of
any motor vehicle, part, accessory or any other commodity not voluntarily
ordered by the dealer. This subsection does not apply to recall safety
and emissions campaign parts not voluntarily ordered by the dealer or any
vehicle features, parts, accessories or other components mandated by
federal, state or local law.

(2) Coerce or attempt to coerce a dealer to enter any agreement or
sales promotion program by threatening to cancel the franchise of the
dealer.

(3) Refuse or fail to deliver, within a reasonable time and in a
reasonable quantity, any new motor vehicle, part or accessory covered by
the franchise if the vehicle, part or accessory is advertised as being
available for delivery or is being delivered to another dealer. This
subsection does not apply if the failure to deliver is the result of a
cause beyond the control of the manufacturer, distributor or importer.

(4) Prevent or attempt to prevent a dealer from making reasonable
changes in the capital structure of a dealership or the means by which
the dealership is financed, provided that the dealer meets any reasonable
capital requirement of the manufacturer, distributor or importer.

(5) Unreasonably refuse to compensate the dealer for work or
services performed and expenses incurred in accordance with the dealer’s
delivery, preparation and warranty obligations under the terms of a
franchise or agreement.

(6) Coerce or attempt to coerce a dealer to participate monetarily
in any advertising campaign or contest, or purchase any promotional
materials, display devices or display decorations or materials at the
expense of the dealer.

(7) Establish a maximum price a dealer may charge for motor
vehicles with a gross vehicle weight rating of less than 8,500 pounds.

(8) Initiate an audit to determine the validity of paid claims for
dealer compensation or any charge-backs for warranty parts or service
compensation more than one year following the date of payment unless the
manufacturer, distributor or importer has reasonable grounds to believe
that the dealer submitted a fraudulent claim. If a manufacturer,
distributor or importer initiates an audit more than one year following
the date of payment, the manufacturer, distributor or importer may charge
back to the dealer only the amount of a claim that the manufacturer,
distributor or importer proves was fraudulent. Parties shall cooperate to
ensure that permitted audits are concluded within 60 days of initiation.

(9) Initiate an audit to determine the validity of paid claims for
dealer compensation or any charge-backs for consumer or dealer incentives
more than one year following the date of payment unless the manufacturer,
distributor or importer has reasonable grounds to believe that the dealer
submitted a fraudulent claim. If a manufacturer, distributor or importer
initiates an audit more than one year following the date of payment, the
manufacturer, distributor or importer may charge back to the dealer only
the amount of a claim that the manufacturer, distributor or importer
proves was fraudulent. Parties shall cooperate to ensure that permitted
audits are concluded within 60 days of initiation.

(10) Unfairly compete with a dealer in any matters governed by the
franchise including, but not limited to, the sale or allocation of
vehicles or other franchisor products, or the execution of dealer
programs or benefits. This subsection applies if the manufacturer,
distributor or importer has an ownership interest in, operates or
controls, directly or indirectly, a business that is a dealer in this
state.

(11) Have an ownership interest in, operate or control, directly or
indirectly, a business that sells or leases a motor vehicle to a person
in Oregon except to a franchisee of the manufacturer, distributor or
importer. It is not a violation of this subsection if:

(a) A manufacturer, distributor or importer:

(A) Has an ownership interest in, operates or controls, directly or
indirectly, a business that is a dealership in this state and is a
business that:

(i) A franchisee owned, operated or controlled before the
manufacturer, distributor or importer acquired the ownership interest in
or began to operate or control the business;

(ii) The manufacturer, distributor or importer maintains an
ownership interest in, operates or controls for no more than two years;
and

(iii) While the manufacturer, distributor or importer maintains an
ownership interest in, operates or controls the business, the
manufacturer, distributor or importer offers the business for sale to any
qualified independent person at a fair and reasonable price.

(B) Has a part ownership interest in, operates or controls,
directly or indirectly, a business that is a dealership in this state and
another person:

(i) Manages the day-to-day operations and business of the
dealership;

(ii) Has made, or is obligated to make within 12 months, a
significant capital investment in the dealership that is subject to loss;

(iii) Has an ownership interest in the dealership; and

(iv) Operates the dealership under a franchise through which the
person will within 15 years acquire full ownership of the dealership
under reasonable terms and conditions.

(C) As of January 1, 2000, had an ownership interest in, operated
or controlled, directly or indirectly, a business that is a dealership in
this state that sells motor vehicles with a gross vehicle weight rating
of 8,500 pounds or more.

(D) Has an ownership interest in, operates or controls, directly or
indirectly, a business that primarily leases or rents motor vehicles for
a period of 12 months or less and the only motor vehicles that the
business sells are motor vehicles that have been:

(i) Owned by the business for 180 days or more; or

(ii) Driven more than 10,000 miles while owned by the business.

(E)(i) Has an ownership interest in, operates or controls, directly
or indirectly, a business that finances the sale or lease of motor
vehicles; and

(ii) Is a business that sells or leases motor vehicles to retail
lessees in Oregon.

(F) Has an ownership interest in, operates or controls, directly or
indirectly, a business that makes a sale or lease of a motor vehicle that
is not a violation of subsection (12) of this section.

(b) A manufacturer has a part ownership interest in, operates or
controls, directly or indirectly, a business that is a dealership in this
state that buys, sells, leases, trades, stores, takes on consignment or
in any other manner deals exclusively in a single line-make of the
manufacturer and:

(A) The manufacturer has, directly or indirectly, no more than 45
percent of the ownership interest in the dealership;

(B) When the manufacturer acquires an ownership interest in the
dealership, the distance from the manufacturer’s dealership to the
dealership of a dealer that buys, sells, leases, trades, stores, takes on
consignment or in any other manner deals in the single line-make of the
manufacturer and in which the manufacturer has no ownership interest is
not less than 15 miles;

(C) The manufacturer complies with the area restrictions in ORS
650.120 and 650.150;

(D) The manufacturer’s franchises authorize a dealer of the single
line-make of the manufacturer to operate as many dealerships within a
defined geographic area as the dealer and manufacturer agree on; and

(E) On January 1, 2000:

(i) There were no more than four dealers in the state of the
manufacturer’s single line-make; and

(ii) Of the dealers in this state of the manufacturer’s single
line-make, at least one was a franchisee that owned and operated at least
two dealerships within the geographic area authorized by franchises with
the manufacturer.

(12) Sell or lease a motor vehicle to a person in this state other
than to a business described in subsection (11) of this section or to a
franchisee of the manufacturer, distributor or importer. It is not a
violation of this subsection if:

(a) The manufacturer, distributor or importer sells or leases a
motor vehicle to:

(A) An employee, retired employee or family member of an employee
or retired employee of the manufacturer, distributor or importer;

(B) A driver training program;

(C) A nonprofit corporation;

(D) A qualified vendor;

(E) A public agency as defined in ORS 537.515;

(F) A current retail lessee;

(G) A fleet owner;

(H) A business acting as a vehicle dealer under ORS chapter 822
that sells motor vehicles only to other vehicle dealers; or

(I) The customers of a business acting as a vehicle dealer under
ORS chapter 822 that sells motor vehicles only to other vehicle dealers.

(b) The sale or lease is by a business in this state that primarily
leases or rents motor vehicles for a period of 12 months or less and the
only motor vehicles that the business sells are motor vehicles that have
been:

(A) Owned by the business for 180 days or more; or

(B) Driven more than 10,000 miles while owned by the business.

(c) The sale or lease is by a subsidiary of a manufacturer,
distributor or importer that finances the sale or lease of motor vehicles
and the sale or lease is to a person who previously leased the vehicle
from the subsidiary.

(13)(a) Own, operate or control a business or enter into any
contract, agreement or other written instrument permitting a person that
is not a dealer to be compensated by the manufacturer, distributor or
importer for performing warranty repairs and services if the business is
located within a dealer’s relevant market area.

(b) Paragraph (a) of this subsection does not apply to:

(A) Warranty repairs and services performed on motor vehicles with
a gross vehicle weight rating of less than 8,500 pounds provided for
commercial or government fleets; or

(B) Warranty repairs and services performed on motor vehicles with
a gross vehicle weight rating of 8,500 pounds or more if, after January
1, 2002, a manufacturer, distributor or importer of only motor vehicles
with a gross vehicle weight rating of 8,500 pounds or more has:

(i) Obtained written permission from the dealers in the relevant
market area to perform the repairs or services; or

(ii) Authorized the repairs or services to be performed by a person
who owns or leases the motor vehicles for use in the person’s business.

(14) Terminate, cancel, fail to renew or fail to approve the sale,
transfer or assignment of any franchise agreement because the dealer
owns, has an investment in, participates in the management of or holds a
franchise agreement with another manufacturer, distributor or importer at
a different dealership site, or has franchises with more than one
manufacturer, distributor or importer sharing the same dealership site,
facilities, personnel or display space before October 23, 1999. [1980 c.3
§2; 1989 c.716 §5; 1999 c.660 §2; 2001 c. 216 §2; 2001 c.825 §2; 2003
c.411 §2](1) Notwithstanding
the terms of any franchise or other agreement, it shall be unlawful for
any manufacturer, distributor or importer to cancel, terminate or refuse
to continue any franchise without showing good cause, provided the dealer
protests such termination by filing a complaint in court of competent
jurisdiction within the time period specified in subsection (3) of this
section.

(2) In determining if good cause exists pursuant to subsection (1)
of this section, the court shall consider such factors as:

(a) The amount of business transacted by the dealer as compared to
the amount of business available to the dealer.

(b) The investment necessarily made and obligations necessarily
incurred by the franchisee in performance of the franchise.

(c) The permanency of the investment.

(d) The adequacy of the franchisee’s new motor vehicle sales and
service facilities, equipment and parts.

(e) The qualifications of the management, sales and service
personnel to provide the consumer with reasonably good service and care
of new motor vehicles.

(f) The failure of the franchisee to substantially comply in good
faith with those requirements of the franchise that are reasonable.

(3) Notwithstanding the terms of any franchise or other agreement,
a franchisor shall give a franchisee 60 days’ written notice stating the
specific reasons for cancellation, termination or noncontinuance of a
franchise, provided that a franchisor need only give 30 days’ written
notice concerning the following reasons:

(a) Misrepresentation by the franchisee in applying for the
franchise.

(b) Insolvency of the franchisee, or filing of any petition by or
against the franchisee, under any bankruptcy or receivership law.

(c) Conviction of a felony, provided that conviction after a plea
nolo contendere shall be considered a conviction for purposes of this
subsection.

(d) Failure of the dealer to maintain its operation open for
business for seven consecutive business days or for eight business days
out of any 15-business-day period. [1980 c.3 §3] (1)
Upon the termination, cancellation, nonrenewal or discontinuance of any
franchise, the dealer shall be allowed fair and reasonable compensation
by the manufacturer, distributor or importer for the following:

(a) All new current model year motor vehicle inventory with a gross
vehicle weight rating of less than 8,500 pounds purchased from the
manufacturer, distributor or importer, which has not been materially
altered, substantially damaged or driven for more than 300 miles;

(b) All new motor vehicle inventory that has not been materially
altered or substantially damaged, provided that the vehicles:

(A) If motor vehicles with a gross vehicle weight rating of less
than 8,500 pounds, were not driven for more than 300 miles, were
purchased directly from the manufacturer, distributor or importer within
120 days of the effective date of the termination, cancellation,
nonrenewal or discontinuance and were either paid for or drafted on the
dealer’s financing source; or

(B) If motor vehicles with a gross vehicle weight rating of 8,500
pounds or more, were not driven more than 4,000 miles, were purchased
directly from the manufacturer, distributor or importer within one year
of the effective date of the termination, cancellation, nonrenewal or
discontinuance and were either paid for or drafted on the dealer’s
financing source;

(c) Supplies and parts inventory purchased from the manufacturer,
distributor or importer and listed in the manufacturer’s, distributor’s
or importer’s current parts catalog;

(d) Equipment, furnishings and signs purchased from the
manufacturer, distributor or importer and required by the manufacturer,
distributor or importer which have not been materially altered, or
substantially damaged or depreciated over 50 percent of the original
value; and

(e) Special tools purchased from the manufacturer, distributor or
importer within three years of the date of termination, cancellation,
nonrenewal or discontinuance and required by the manufacturer which have
not been materially altered, or substantially damaged or depreciated over
50 percent of the original value.

(2) “Fair and reasonable compensation” shall be the amount
originally paid by the dealer minus any incentive payments, model
close-out allowances or any other programs applicable to the vehicles.

(3) Nothing in this section is intended to modify the
manufacturer’s, distributor’s or importer’s contractual right of setoff.

(4) Upon the termination, cancellation, nonrenewal or
discontinuance of a franchise, the manufacturer, distributor or importer
shall also pay to the dealer a sum equal to the current, fair rental
value of the dealer’s established place of business for a period of one
year from the effective date of termination, cancellation, nonrenewal or
discontinuance or the remaining period of any lease, whichever is less.

(5) Subsection (4) of this section shall apply only to the extent
that the dealer’s established place of business is used for performance
of sales and service obligations under the manufacturer’s, distributor’s
or importer’s franchise agreement.

(6) In the event that termination is by the dealer, the payment
required by subsection (4) of this section is not required.

(7) This section shall not relieve a new motor vehicle dealer,
lessor or other owner of an established place of business from the
obligation of mitigating damages. [1989 c.716 §2; 2001 c.216 §3](1) A dealer
may enjoin a manufacturer, distributor or importer from franchising an
additional motor vehicle dealership of the same line-make within the
dealer’s relevant market area for good cause, provided that the dealer
files a complaint with a court of competent jurisdiction within 60 days
of receiving the notice specified in subsection (5) of this section. For
purposes of this section, “relevant market area” shall have the meaning
given that term in ORS 650.120, but other factors such as actual sales
and service area shall be considered.

(2) A dealer may enjoin a manufacturer, distributor or importer
from relocating an existing motor vehicle dealership of the same
line-make within the dealer’s relevant market area for good cause,
provided that the dealer files a complaint with a court of competent
jurisdiction within 60 days of receiving the notice specified in
subsection (5) of this section. This subsection shall not apply to an
existing dealership or to the dealership of a replacement dealer that is
relocating to a site within a one-mile radius of its existing site if the
relevant market area of the existing or replacement dealership is not
more than 10 miles, within a two-mile radius of its existing site if the
relevant market area of the existing or replacement dealership is not
more than 15 miles and within a three-mile radius of the existing site if
the relevant market area of the existing or replacement dealership is
more than 15 miles.

(3) A dealer may enjoin a manufacturer, distributor or importer
from franchising a replacement dealer to operate a dealership of the same
line-make within the dealer’s relevant market area for good cause,
provided that the franchising of the replacement dealer has not occurred
within one year of the expiration or termination of the former franchise
and the dealer files a complaint with a court of competent jurisdiction
within 60 days of receiving the notice specified in subsection (5) of
this section. For the purposes of this section, “relevant market area”
shall have the meaning given that term in ORS 650.120, but other factors
such as actual sales and service area shall be considered.

(4) In determining whether good cause exists pursuant to subsection
(1), (2) or (3) of this section, the court may consider all factors that
the court considers relevant, but in any case shall consider the
following factors:

(a) Whether threats or other coercive action, oral or written, were
made to or taken against the dealer by the manufacturer, distributor or
importer.

(b) Whether the dealer is asked to terminate one franchise in order
to keep another franchise.

(c) Whether there will be an unjustifiable adverse effect upon
existing dealers because of the grant of the new franchise or the
relocation of an existing franchise. For purposes of this paragraph, the
court may consider all factors that the court determines relevant, but in
any case shall consider the following factors:

(A) The extent, nature and permanency of the investment of the
existing motor vehicle dealers and the proposed motor vehicle dealer.

(B) The effect on the retail motor vehicle business in the relevant
market area.

(C) The growth or decline in population and in new motor vehicle
registrations in the relevant market area.

(d) The effect on consumers in the relevant market area. For
purposes of this paragraph, the court may consider all factors that the
court determines relevant, but in any case shall consider the following
factors in the relevant market area:

(A) The adequacy and convenience of existing motor vehicle sales
facilities and service facilities.

(B) The supply of motor vehicle parts and qualified service
personnel.

(C) The existence of competition among existing dealers.

(5) A manufacturer, distributor or importer must give an existing
dealership at least 60 days’ written notice prior to franchising a new
dealership of the same line-make or authorizing the relocation of another
dealership of the same line-make within the relevant market area of the
existing dealership. Notice under this subsection must be given to all
dealers of the same line-make within the relevant market area of the site
of the proposed new or relocated dealership.

(6) If a dealer enjoins a manufacturer, distributor or importer
under this section, the manufacturer, distributor or importer shall pay
the dealer’s court costs and attorney fees if the dealer prevails
regardless of whether a new dealership was actually established. [1980
c.3 §4; 1985 c.67 §1; 1993 c.216 §2; 1999 c.660 §3](1) If a new motor vehicle
becomes inoperative prior to being sold to a consumer, the franchisor is
liable for the repair of the motor vehicle if the motor vehicle is
inoperative due to a mechanical failure that is not the result of
negligence on the part of the franchisee.

(2) Whenever a new motor vehicle becomes inoperative, the
franchisee shall notify the franchisor and request authorization from the
franchisor to repair the vehicle.

(3) If the franchisor refuses or fails to authorize repair of the
inoperative motor vehicle within 30 business days after receiving notice
under subsection (2) of this section, ownership of the new motor vehicle
shall revert back to the franchisor, and the franchisee shall have no
obligation, financial or otherwise, with respect to the motor vehicle.

(4) If the franchisor is unable to deliver to the franchisee the
parts needed to repair an inoperative new motor vehicle within 30
business days after receiving notice under subsection (2) of this
section, ownership of the new motor vehicle shall revert to the
franchisor, and the franchisee shall have no obligation, financial or
otherwise, with respect to the motor vehicle. [1999 c.660 §8; 2005 c.22
§453](1) Notwithstanding the terms of any franchise, the
manufacturer is liable for any and all damage to new motor vehicles
before delivery to a carrier or transporter.

(2) Whenever a new motor vehicle is damaged in transit, the dealer
shall:

(a) Notify the manufacturer of the damage within three business
days from the date of delivery to the dealer or within any additional
time as specified in the franchise; and

(b) Request from the manufacturer authorization to replace the
components, parts and accessories damaged or to otherwise repair the
damage.

(3) If the manufacturer refuses or fails to authorize repair of any
damage within 10 days after receipt of notification under subsection (2)
of this section, or within any additional time as specified in the
franchise, ownership of the new motor vehicle shall revert to the
manufacturer, and the new motor vehicle dealer shall have no obligation,
financial or otherwise, with respect to the motor vehicle.

(4) A manufacturer shall disclose in writing to a dealer, at the
time of delivery of a new motor vehicle, the nature and extent of any and
all damage and post-manufacturing repairs.

(5) If the total value of repairs to a new motor vehicle by the
manufacturer’s authorized agent and a dealer equals or exceeds the amount
specified under subsection (6) of this section, the manufacturer may
either repurchase the motor vehicle from the dealer, or provide
reasonable and adequate compensation to the dealer to assist in sale or
disposition of the new motor vehicle, as long as the dealer has complied
with all other contractual agreements with regard to damaged vehicles. If
the manufacturer repurchases the motor vehicle, the dealer shall have no
obligation, financial or otherwise, with respect to the motor vehicle.

(6) A dealer shall disclose, in writing, to a purchaser of the new
motor vehicle prior to entering into a sales contract that the new motor
vehicle has been damaged and repaired if the damage to the new motor
vehicle exceeds $500, as calculated at the rate of the dealer’s
authorized warranty rate for labor and parts. Replacement of glass,
tires, bumpers or any comparable nonwelded component is not considered
damage and repair for purposes of this section. For purposes of this
subsection, “comparable nonwelded component” does not include a fender,
hood, trunk lid or door. [1989 c.716 §3; 1999 c.660 §4; 2003 c.411 §3](1) Each
manufacturer, distributor or importer shall specify in writing to each of
its dealers in this state:

(a) The dealer’s obligations for predelivery preparation and
warranty service on motor vehicles of the manufacturer, distributor or
importer;

(b) The schedule of compensation to be paid the dealer for parts,
work and service in connection with predelivery preparation and warranty
service; and

(c) The time allowances for the performance of the predelivery
preparation and warranty service.

(2) A schedule of compensation shall include reasonable
compensation for diagnostic work, repair service and labor. Time
allowances for the diagnosis and performance of predelivery and warranty
service shall be reasonable and adequate for the work to be performed.
The hourly rate paid to a dealer shall not be less than the rate charged
by the dealer to nonwarranty customers for nonwarranty service and
repairs. Reimbursement for parts, other than parts used to repair the
living facilities of motor homes, purchased by the dealer for use in
performing predelivery and warranty service shall be the amount charged
by the dealer to nonwarranty customers, as long as that amount is not
unreasonable.

(3) A manufacturer, distributor or importer shall include, in
written notices of vehicle recalls to motor vehicle owners and dealers,
the expected date by which necessary parts and equipment will be
available to the dealers for the correction of the defect or defects. A
manufacturer, distributor or importer shall adequately compensate a
dealer for repair service performed under the recall.

(4) All claims made by dealers under this section for labor and
parts shall be paid or credited to the dealer within 30 days following
their approval. All such claims shall be either approved or disapproved
within 30 days after their receipt in the manner specified by the
manufacturer, distributor or importer. Any claim not specifically
disapproved in writing or through electronic communication within 30 days
after receipt shall be considered approved, and payment shall be made
within 30 days. The dealer shall be notified in writing of the grounds
for disapproval of any claim. [1991 c.609 §3; 1999 c.660 §5](1)
To transfer, assign or sell the ownership or management, or any interest
in the ownership or management, of a dealer, dealership or franchise, the
dealer shall notify the franchisor of the decision to transfer, assign or
sell. The notice shall include completed application forms and related
information generally used by the manufacturer, distributor or importer
to conduct a review of transfers, assignments or sales and a copy of all
agreements regarding the transfer, assignment or sale.

(2) Within 60 days of receiving notice sent under subsection (1) of
this section, a franchisor shall send a notice by certified mail to the
dealer. The notice sent under this subsection shall specify approval or
disapproval of the transfer, assignment or sale. If the transfer,
assignment or sale is disapproved, the notice shall set forth material
reasons for the disapproval.

(3) A manufacturer, distributor or importer may not unreasonably
withhold approval of a transfer, assignment or sale. It is unreasonable
for a manufacturer, distributor or importer to reject a prospective
transferee, assignee or buyer who is of good moral character and who
otherwise meets the manufacturer’s, distributor’s or importer’s written
and reasonable standards or qualifications relating to the prospective
transferee’s, assignee’s or buyer’s:

(a) Business experience and performance; and

(b) Financial qualifications.

(4) If the manufacturer, distributor or importer does not respond
within 60 days of receiving a notice sent under subsection (1) of this
section, the transfer, assignment or sale shall be considered approved
and shall take effect.

(5) A manufacturer, distributor or importer may exercise a right of
first refusal if the right is included in the franchise agreement, the
transfer, assignment or sale consists of more than 50 percent of the
dealer’s ownership of the franchise and all of the following requirements
are met:

(a) The manufacturer, distributor or importer sends a notice by
certified mail to the dealer within 60 days of receiving a notice under
subsection (1) of this section specifying that the franchisor is
exercising a right of first refusal.

(b) The exercise of the right of first refusal will result in the
dealer and any owner of the dealer receiving consideration, terms and
conditions that are either the same as or better than those contracted to
receive under the transfer, assignment or sale.

(c) The transferee, assignee or buyer is not any of the following:

(A) Any of the following family members of any owner of the dealer:

(i) A spouse;

(ii) A child or stepchild;

(iii) A grandchild or stepgrandchild;

(iv) The spouse of a child, stepchild, grandchild or stepgrandchild;

(v) A brother or sister or a stepbrother or stepsister; or

(vi) A parent or stepparent;

(B) A manager employed by the dealer who is otherwise qualified to
be a dealer;

(C) A partnership or corporation controlled by any of the family
members listed in paragraph (c)(A) of this subsection; or

(D) A trust established or to be established:

(i) For the purposes of allowing the transferee, assignee or buyer
to continue to qualify as such under the manufacturer’s, distributor’s or
importer’s standards; or

(ii) To provide for the succession of the franchise to qualified
designated family members or a qualified manager in the event of the
death or incapacity of the dealer.

(d) The manufacturer, distributor or importer pays the reasonable
expenses, including attorney fees, that are incurred by the transferee,
assignee or buyer before the manufacturer, distributor or importer
exercises a right of first refusal. A manufacturer, distributor or
importer may require the transferee, assignee or buyer to provide an
accounting of expenses incurred prior to issuing payment. [1999 c.660 §9] It shall be a violation of
ORS 650.120 to 650.170 for a franchisor to require a franchisee to agree
to the inclusion of a term or condition in a franchise, or in any lease
or agreement ancillary or collateral to a franchise, as a condition to
the offer, grant or renewal of such franchise, lease or agreement, that:

(1) Requires the franchisee to waive trial by jury in actions
involving the franchisor;

(2) Specifies the jurisdictions, venues or tribunals in which
disputes arising with respect to the franchise, lease or agreement shall
or shall not be submitted for resolution or otherwise prevents a
franchisee from bringing an action in a particular forum otherwise
available under the law;

(3) Requires that disputes between the franchisor and franchisee be
submitted to arbitration or to any other binding alternate dispute
resolution procedure. However, any such franchise, lease or agreement may
authorize the submission of a dispute to arbitration or to binding
alternate dispute resolution if the franchisor and franchisee voluntarily
agree to submit such dispute to arbitration or binding alternate dispute
resolution at the time the dispute arises; or

(4) Adversely alters to a substantial degree the rights and
obligations of a franchisee under any existing franchise contract. [1989
c.716 §4; 1999 c.660 §6]
In any action brought by a dealer against a manufacturer, distributor or
importer under ORS 650.120 to 650.170, any violation of ORS 650.140 or
650.150 by a manufacturer, distributor or importer may be considered an
irreparable injury to the dealer for determining if a temporary
restraining order should be issued. [1991 c.609 §2] (1) Any dealer injured, or threatened with
injury, by a manufacturer, distributor or importer as a result of a
violation of ORS 650.120 to 650.170 may sue to enjoin such illegal, or
threatened illegal conduct.

(2) The court, in an action brought under ORS 650.120 to 650.170,
may award damages to a dealer who demonstrates an actual loss of money as
a result of illegal conduct by a manufacturer, distributor or importer.

(3) Any action for damages under ORS 650.120 to 650.170 shall be
brought within two years of the injury. In any action brought under ORS
650.120 to 650.170, the court may award reasonable attorney fees and
costs to the prevailing party. [1980 c.3 §6]MOTOR FUEL FRANCHISES As used in ORS
650.200 to 650.250, unless the context requires otherwise:

(1) “Affiliate” means any person who, other than by means of a
franchise, controls, is controlled by or is under common control with any
other person.

(2) “Company operated station” means a motor fuel service station
operated by a franchisor with employees of the franchisor or by a
commission manager of the franchisor for the sale of motor fuel to the
general public for ultimate consumption.

(3) “Contract” means any oral or written agreement. For supply
purposes, delivery levels during the same month of the previous year
shall be prima facie evidence of an agreement to deliver such levels.

(4) “Control” means the direct or indirect ownership of or the
right to exercise a directing influence over more than 50 percent of the
beneficial interest in any person.

(5)(a) “Franchise” means any contract:

(A) Between a refiner and a motor fuel distributor;

(B) Between a refiner and a motor fuel retailer;

(C) Between a motor fuel distributor and another motor fuel
distributor; or

(D) Between a motor fuel distributor and a motor fuel retailer,under which a refiner or motor fuel distributor authorizes or permits a
motor fuel retailer or motor fuel distributor to use, in connection with
the sale, consignment or distribution of motor fuel, a trademark which is
owned or controlled by such refiner or motor fuel distributor or by a
refiner which supplies motor fuel to the motor fuel distributor which
authorizes or permits such use.

(b) “Franchise” includes:

(A) Any contract under which a motor fuel retailer or motor fuel
distributor is authorized or permitted to occupy leased marketing
premises, to be employed in connection with the sale, consignment or
distribution of motor fuel under a trademark which is owned or controlled
by such refiner or motor fuel distributor or by a refiner which supplies
motor fuel to the motor fuel distributor which authorizes or permits such
occupancy;

(B) Any contract pertaining to the supply of motor fuel which is to
be sold, consigned or distributed under a trademark owned or controlled
by a refiner or motor fuel distributor or under a contract which has
existed continuously since May 15, 1973, and pursuant to which, on May
15, 1973, motor fuel was sold, consigned or distributed under a trademark
owned and controlled on such date by a refiner or motor fuel distributor;
and

(C) The unexpired portion of any franchise, as defined in this
paragraph, which is transferred or assigned as authorized by the
provisions of such franchise or by any applicable provisions of law which
permits such transfer or assignment without regard to any provision of
the franchise.

(6) “Franchise relationship” means the respective motor fuel
marketing or distribution obligations and responsibilities of a
franchisor and a franchisee which result from the marketing of motor fuel
under a franchise.

(7) “Franchisee” means a motor fuel retailer or motor fuel
distributor who is authorized or permitted under a franchise to use a
trademark in connection with the sale, consignment or distribution of
motor fuel.

(8) “Franchisor” means a refiner or motor fuel distributor who,
under a franchise, authorizes or permits a retailer or motor fuel
distributor to use a trademark in connection with the sale, consignment
or distribution of motor fuel.

(9) “Leased marketing premises” means marketing premises owned,
leased or in any way controlled by a franchisor and which the franchisee
is authorized or permitted, under the franchise, to employ in connection
with the sale, consignment or distribution of motor fuel.

(10) “Marketing premises” means in the case of any franchise,
premises which, under such franchise, are to be employed by the
franchisee in connection with the sale, consignment or distribution of
motor fuel.

(11) “Motor fuel” means gasoline and diesel fuel of a type
distributed for use as a fuel in self-propelled vehicles designed
primarily for use on public streets, roads and highways.

(12) “Motor fuel distributor” means any person, including any
affiliate of such person, who:

(a) Purchases motor fuel for sale, consignment or distribution to
another; or

(b) Receives motor fuel on consignment for distribution to the
distributor’s own motor fuel accounts or to accounts of the distributor’s
supplier, but shall not include a person who is an employee of, or merely
serves as a common carrier providing transportation service for, such
supplier or who receives motor fuel on consignment for sale to the
general public for ultimate consumption.

(13) “Motor fuel retailer” means any person who purchases motor
fuel for sale to the general public for ultimate consumption.

(14) “Refiner” means any person engaged in the refining of crude
oil to produce motor fuel, and includes any affiliate of such person.
[1987 c.917 §1] Notwithstanding the terms
of any franchise, a franchisor shall not:

(1) Require any franchisee to meet unreasonable mandatory minimum
sales volume requirements for fuel or other products;

(2) Alter the franchise premises during the effective term of the
franchise without the consent of the franchisee. This subsection does not
apply to alterations required by law;

(3) Interfere with any franchisee’s right to assistance of counsel
on any matter or to join or be active in any trade association;

(4) Set or compel, directly or indirectly, the retail price at
which the franchisee sells motor fuel or other products; and

(5)(a) With respect to credit cards issued by the franchisor,
chargeback any credit card invoice to a motor fuel franchisee unless the
franchisor provides the cardholder’s last-known address, the reason for
chargeback, a refund or credit for any credit card handling fee collected
on the transaction by the franchisor from the franchisee, and the
original invoice of the credit card charge or the legal equivalent if the
franchisor has previously received the invoice or a copy thereof. The
cardholder’s address need not be provided if the chargeback is based on
any alleged unlawful, fraudulent or deceptive act of the franchisee or an
employee of the franchisee, or if the cardholder claims no legal
responsibility for payment of the charge because it involved the
unauthorized use of a credit card.

(b) The terms and conditions governing a motor fuel franchisee’s
acceptance of a franchisor issued credit card, including the reasons for
which a chargeback may be made, shall be established in writing and a
copy thereof provided to the franchisee. The franchisor or its agent
shall provide at least 30 days’ prior written notice to a franchisee
before implementing any change to previously disclosed terms and
conditions if such change may increase the franchisee’s cost of accepting
the franchisor issued credit card or if such change adds to or amends the
reasons for which a chargeback may occur.

(c) No credit card invoice for a franchisor issued credit card
shall be charged back after 90-days from the date a charge invoice was
submitted to the franchisor, except that a chargeback may be made beyond
the 90-day period if the cardholder or franchisor alleges fraudulent or
other unlawful actions by the franchisee or an employee thereof in making
the sale, or if the cardholder refuses payment to the franchisor pursuant
to rights granted under §170 of the Federal Truth-in-Lending Act (15
U.S.C. 1666i), or any rule issued under §5 of the Federal Trade
Commission Act (15 U.S.C. 46), unless the cardholder’s refusal to pay is
the fault of the franchisor. [1987 c.917 §5]Without limiting the other provisions of ORS
650.200 to 650.250, the following specific rights and prohibitions shall
govern the relationship between the franchisor and the franchisee. It
shall be unlawful and a violation of ORS 650.200 to 650.250 for any
franchisor to:

(1) Require a franchisee to purchase or lease goods or services of
a franchisor or from approved sources of supply unless and to the extent
that the franchisor satisfies the burden of proving that such restrictive
purchasing agreements are reasonably necessary for a lawful purpose
justified on business grounds, and do not substantially affect
competition. This subsection does not apply to the initial inventory of
the franchise. A determination of whether such restrictive purchasing
agreements are reasonably necessary for a lawful purpose justified on
business grounds and do not substantially affect competition shall be
guided by the decisions of the courts of the United States in
interpreting and applying the antitrust laws of the United States.

(2) Sell, rent or offer to sell or rent to a franchisee any
product, service or property at a price not set in good faith as defined
in ORS 72.1030 (1)(b).

(3) Require a franchisee to assent to a release, assignment,
novation or waiver which would relieve any person from liability imposed
by ORS 650.200 to 650.250.

(4) Refuse to renew a franchise without fairly compensating the
franchisee for the fair market value at the time of expiration of the
franchise of the franchisee’s resalable inventory, supplies, equipment
and furnishings purchased from the franchisor, not including personalized
materials that have no value to the franchisor and inventory, supplies,
equipment and furnishings not reasonably required in the conduct of the
franchise business. A franchisor may offset against amounts owed to a
franchisee under this subsection any amounts owed by such franchisee to
the franchisor.

(5) Impose on a franchisee by contract, rule or regulation, whether
written or oral, any standard of conduct unless the person so doing can
sustain the burden of proving the standard of conduct to be reasonable.
[1987 c.917 §9]
It is unlawful for any person in connection with the offer, sale or
purchase of any franchise directly or indirectly:

(1) To sell or offer to sell a franchise in this state by means of
any written or oral communication which includes an untrue statement of a
material fact.

(2) To employ any device, scheme or artifice to defraud.

(3) To engage in any act, practice or course of business which
operates or would operate as a fraud or deceit upon any person. [1987
c.917 §10](1) Notwithstanding the terms
of any franchise, a franchisor shall not prohibit or unreasonably
withhold its consent to any sale, assignment or other transfer of the
franchise by a franchisee to a qualified third party.

(2) If the franchisor consents to the proposed sale, assignment or
other transfer and the proposed third party has not previously been a
party to a franchise with the franchisor, the franchisor at its option
may require the third party to accept in lieu of the assigned franchise a
trial franchise as defined in The Petroleum Marketing Practices Act, (15
U.S.C. 2803), on the terms and conditions then generally being extended
by the franchisor to similarly situated franchisees. Entry into the trial
franchise shall terminate the franchise proposed to be sold, assigned or
transferred. [1987 c.917 §2](1) Following the death of a motor fuel
retailer franchisee and notwithstanding the terms of the franchise, the
franchisor, in the case of leased marketing premises, shall enter into a
new franchise with the designee of the motor fuel retailer franchisee on
the terms and conditions then generally being extended by the franchisor
to similarly situated motor fuel retailers if:

(a) Prior to the death of a motor fuel retailer franchisee, the
motor fuel retailer franchisee notifies the franchisor in writing of the
designee, who shall be the surviving spouse, adult child, or adult
stepchild of the motor fuel retailer franchisee or in the absence of a
designation, the motor fuel retailer franchisee’s surviving spouse, if
any;

(b) At the time of the motor fuel retailer franchisee’s death, the
designee meets the qualifications then being required by the franchisor
for its motor fuel retailer franchisees; and

(c) Within 10 days following the motor fuel retailer franchisee’s
death, the designee enters into a new franchise with the franchisor on
the terms and conditions then generally being extended by the franchisor
to similarly situated motor fuel retailer franchisees, except that for
the part of the term of the new lease equal to the unexpired portion of
decedent franchisee’s prior lease, the rent shall be the same as under
the prior lease.

(2) Until the designee enters into a new franchise as provided in
subsection (1) of this section, the franchisor shall be entitled to
possess and to operate the marketing premises for the franchisor’s own
account. [1987 c.917 §3]Notwithstanding the terms of any
franchise, no franchisor may prohibit or prevent the sale, assignment or
other transfer of a franchise to a corporation in which the franchisee
has and maintains a controlling interest if the franchisee offers in
writing personally to guarantee the performance of the obligations under
the franchise. In the event of a sale, assignment or transfer under this
section, the franchisor may require the corporation to assume in writing
all of the franchisee’s obligations to the franchisor under the franchise
and may require the franchisee to maintain a controlling interest in the
corporation and actively operate the marketing premises during the time
that the franchise with the corporation continues. [1987 c.917 §4](1) A franchisor, as a
condition for renewal of a franchisee lease or a supply agreement, shall
not require a franchisee to operate a service station for the sale of
motor fuel to the public for ultimate consumption in excess of 16 hours
per day.

(2) This section shall not apply:

(a) If specific hours of business or operation are required under
the franchisor’s prime lease or license from any governmental entity,
airport, parking, marine or port authority, shopping center or any
private investor not affiliated with or controlled by the franchisor;

(b) If the service station is located within one-fourth mile of
access to any limited access highway of the federal highway system;

(c) To hours of operation exceeding 16 hours per day that have been
agreed upon by the franchisor and the franchisee; or

(d) If the franchisor uniformly requires a 24-hour operation by all
of its franchisees. [1987 c.917 §7] For
purposes of ORS 646.040, the transfer of motor fuel from a franchisor to
a company operated station or a franchisee shall be a sale in commerce.
[1987 c.917 §6] Without limiting the other
provisions of ORS 650.200 to 650.250, the principle of good faith shall
govern the relationship and dealings of the parties with each other.
[1987 c.917 §8](1) Any person who is injured in the person’s
business or property by reason of a violation of ORS 650.200 to 650.250
may sue therefor in any court having jurisdiction in the county where the
defendant resides or is found, or any agent resides or is found, or where
service may be obtained, for injunctive relief or to recover the damages
sustained by the person. Any action brought pursuant to this section
shall be commenced within four years after the cause of action accrued.
Except as provided in subsection (2) of this section, the court may award
reasonable attorney fees to the prevailing party in an action under this
section.

(2) The court may not award attorney fees to a prevailing defendant
under the provisions of subsection (1) of this section if the action
under this section is maintained as a class action pursuant to ORCP 32.
[1987 c.917 §11; 1995 c.696 §42]RECREATIONAL VEHICLE FRANCHISES As used in ORS
650.300 to 650.480:

(1) “Area of sales responsibility” means the geographic area for
which a grantor has granted a dealer the exclusive right to sell
recreational vehicles manufactured or distributed by the grantor.

(2) “Camper” has the meaning given that term in ORS 801.180.

(3) “Consumer” means a purchaser or lessee, other than for purposes
of resale, of a product.

(4) “Dealer” means a person that:

(a) Is certified under ORS 822.020 as a vehicle dealer in this
state; and

(b) Sells or leases recreational vehicles to the motoring public in
this state.

(5) “Dealership agreement” means a written agreement pursuant to
which a grantor grants a dealer the right:

(a) To sell or lease recreational vehicles or recreational vehicle
services offered by the grantor; or

(b) To use a trade name, trademark, service mark, logo or other
commercial symbol in the sale or distribution of recreational vehicles
offered by the grantor.

(6) “Distributor” means a person that purchases new recreational
vehicles for resale to a dealer.

(7) “Family” means:

(a) A parent, sibling, spouse, child, nephew, niece or grandchild
of a dealer if the dealer is an individual; or

(b) The spouse of the dealer’s parent, sibling, child, nephew,
niece or grandchild.

(8) “Fifth wheel hitch” has the meaning given that term in ORS
801.275.

(9) “Grantor” means a manufacturer or distributor of recreational
vehicles.

(10) “Line make” means new recreational vehicles that:

(a) A grantor or dealer offers for sale, lease or distribution
under the grantor’s trade name, trademark, service mark, logo or other
commercial symbol;

(b) Are intended for sale or lease to a specific segment of the
motoring public based upon the vehicles’ decor, equipment, features,
price, size and weight;

(c) Have bodies, chassis and frames that, in the view of the
motoring public, place the recreational vehicles in the same distinct
class of recreational vehicle;

(d) Have lengths and interior floor plans that distinguish the
recreational vehicles from recreational vehicles with substantially the
same decor, equipment, features, price and weight; and

(e) A dealership agreement authorizes a dealer to sell or lease.

(11) “Manufacturer” means a person engaged in the manufacture of
new recreational vehicles.

(12) “Motor home” has the meaning given that term in ORS 801.350.

(13) “Net invoice cost” means the price a dealer paid for a
product, less any rebate or discount, plus taxes the dealer paid on the
product and any sums the dealer paid to transport the product to the
dealer.

(14) “Product” means a recreational vehicle or an accessory, part,
equipment, machine, tool or sign of or for a recreational vehicle.

(15) “Proprietary part or accessory” means a part or accessory of
or for a recreational vehicle manufactured by or for a grantor and sold
to dealers only by the grantor.

(16) “Recreational vehicle” means a vehicle with or without motive
power that is designed for human occupancy and to be used temporarily for
recreational, seasonal or emergency purposes, including but not limited
to a travel trailer, trailer towed with a fifth wheel hitch, camper,
camping trailer, fold-up camping trailer, pop-up, tent camper, truck
camper and motor home. “Recreational vehicle” does not include a bus as
defined in ORS 184.675 with a chassis length of not less than 35 feet
that has been converted into a motor coach.

(17) “Travel trailer” has the meaning given that term in ORS
801.565.

(18) “Warrantor” means a person that makes a warranty.

(19) “Warranty” means a warranty made to a consumer for a new
product, without charge, that is not negotiated or separated from the
sale of the product and is incidental to the sale of the product, and
that guarantees indemnity for defective parts, mechanical or electrical
breakdown, labor or other remedial measures such as repair or
replacement. “Warranty” does not include a service contract, insurance or
extended warranty sold for separate consideration by a dealer or other
person not under the control of a manufacturer. [2003 c.377 §1] When determining whether good
cause exists for an action, a person shall consider:

(1) Concerning the dealer affected by the action:

(a) The extent of the dealer’s sales and leases of recreational
vehicles in the area of sales responsibility;

(b) The nature and extent of the dealer’s investment in the
dealer’s business;

(c) Whether the dealer’s service facilities, equipment, parts,
supplies and personnel are adequate to carry out the responsibilities
assigned to the dealer in the dealership agreement;

(d) The extent and quality of the warranty service performed by the
dealer; and

(e) The extent to which the dealer performed the obligations
imposed by the dealership agreement.

(2) The economic effect the action may have on communities located
within the affected dealer’s area of sales responsibility. [2003 c.377 §2] (1) A dealership agreement shall:

(a) Contain a provision that the law of this state governs the
agreement;

(b) Assign the dealer an area of sales responsibility;

(c) If the dealer is an individual, include the designation of a
member of the dealer’s family to succeed to the dealer’s interests in the
dealer’s business and dealership agreement upon the dealer’s death,
incapacity or retirement; and

(d) Inform the dealer of the dealer’s obligations:

(A) To perform warranty service;

(B) To prepare products for delivery to the consumer; and

(C) To deliver products to the consumer.

(2) Upon a dealer’s request, a grantor shall reconsider the scope
of the dealer’s area of sales responsibility once a year.

(3) During the term of a dealership agreement, a grantor may not:

(a) Change the dealer’s area of sales responsibility; or

(b) Authorize another dealer to sell or lease the same line make in
the area of sales responsibility.

(4) Subsection (3)(b) of this section does not apply if:

(a) Good cause exists to authorize another dealer in the same area
of sales responsibility; and

(b) The area of sales responsibility will support the existing
dealer and the new dealer. [2003 c.377 §3]
(1) As used in this section, “terms and conditions” includes rebates,
discounts or any other program that may affect the ultimate price of a
product.

(2) If dealers compete for the sale or lease of recreational
vehicles to the motoring public, a grantor shall offer to sell products
to the dealers at the same prices and on the same terms and conditions.

(3) A grantor may not sell a recreational vehicle to the motoring
public. [2003 c.377 §4](1) Without good cause, a grantor may not:

(a) Terminate, cancel or fail to renew a dealership agreement.

(b) During the term of a dealership agreement, take an action that
has a substantial adverse effect on a dealer’s ability to sell or lease
recreational vehicles, including changing the dealer’s area of sales
responsibility.

(2) A grantor shall give a dealer at least 120 days’ written notice
of termination or cancellation of or failure to renew the dealer’s
dealership agreement.

(3) In a notice of termination, cancellation or failure to renew,
the grantor shall state:

(a) The reasons for the termination, cancellation or failure to
renew;

(b) That the dealer has 30 days from the dealer’s receipt of the
notice to notify the grantor in writing of the dealer’s intent to cure
any deficiencies that formed the basis for the termination, cancellation
or failure to renew;

(c) That, if the dealer notifies the grantor as provided in
paragraph (b) of this subsection, the dealer has 120 days from the
dealer’s receipt of the notice of termination, cancellation or failure to
renew within which to cure the deficiencies;

(d) That, upon a written request by the dealer showing good cause
for an extension of the 120-day period, the grantor may give the dealer
up to an additional 60 days within which to cure the deficiencies; and

(e) That, if the dealer cures the deficiencies, the grantor will
rescind the notice of termination, cancellation or failure to renew.

(4) If a dealer that notifies a grantor of the dealer’s intent to
cure the deficiencies on which a grantor based a termination,
cancellation or failure to renew cures the deficiencies within the time
prescribed by the grantor, the grantor shall rescind the notice of
termination, cancellation or failure to renew.

(5) Subsections (2) to (4) of this section do not apply if the
reason for the termination, cancellation or failure to renew is the
dealer’s bankruptcy, insolvency or assignment of assets for the benefit
of creditors.

(6) Notwithstanding subsection (2) of this section, a termination
or cancellation of or failure to renew a dealership agreement:

(a) Takes effect 30 days after the dealer receives notice of
termination, cancellation or failure to renew and the grounds for
termination, cancellation or failure to renew is:

(A) A felony conviction of the dealer or a principal owner of the
dealer;

(B) The closing of the dealership for 10 consecutive business days,
except if the closing is due to:

(i) An act of God;

(ii) A strike, lockout or other labor dispute;

(iii) A scheduled seasonal or holiday closing; or

(iv) A cause over which the dealer has no control; or

(C) Suspension or revocation of or failure to renew the dealer’s
certificate under ORS 822.020.

(b) Takes effect 31 days after the dealer receives the notice of
termination, cancellation or failure to renew if:

(A) The dealer did not notify the grantor as provided in subsection
(3)(b) of this section; and

(B) On the 31st day after receiving the notice of termination,
cancellation or failure to renew, the dealer does not possess new
recreational vehicles from the grantor that the dealer has not sold or
leased to a consumer.

(7) A dealer may cancel a dealership agreement by giving 30 days’
written notice of cancellation to the grantor. [2003 c.377 §5](1) Upon the termination or cancellation of or failure to renew
a dealership agreement by the grantor, the grantor shall, at the dealer’s
request and within 30 days of the termination, cancellation or failure to
renew, purchase from the dealer:

(a) All new recreational vehicles that the dealer purchased from
the grantor within 12 months prior to the effective date of the
termination, cancellation or failure to renew and for which a consumer
has not obtained a title as defined in ORS 801.526;

(b) If accompanied by the original invoice, all current and
undamaged proprietary parts and accessories that the dealer purchased
from the grantor within 120 days prior to the effective date of the
termination, cancellation or failure to renew; and

(c) All functioning equipment, machines and tools and all current
signs that the dealer purchased from the grantor at the grantor’s request
in the five years before termination, cancellation or failure to renew
and that cannot continue to be used in the normal course of the dealer’s
business.

(2) Subsection (1)(a) of this section does not apply to a
recreational vehicle that:

(a) The dealer has sold or leased to a consumer or that has been
used for more than demonstration or materially altered; or

(b) Has been damaged to the extent requiring disclosure to a
consumer under ORS 650.420.

(3) For the purposes of subsection (1)(a) of this section:

(a) If a new recreational vehicle has not been damaged, the sum due
for the recreational vehicle is the net invoice cost.

(b) If a new recreational vehicle has been damaged but less than to
the extent requiring disclosure to a consumer under ORS 650.420, the sum
due for the recreational vehicle is the net invoice cost less the cost to
repair the vehicle.

(4) The sum due for a proprietary part or accessory under
subsection (1)(b) of this section is 105 percent of the net invoice cost
plus the cost to the dealer to transport the part or accessory to the
grantor.

(5) The sum due for equipment, machines, tools and signs under
subsection (1)(c) of this section is the net invoice cost of the
equipment, machines, tools and signs.

(6) A grantor shall pay a dealer the sum due in full within 30 days
of receiving a product from a dealer under this section. [2003 c.377 §6;
2005 c.47 §1] (1) As used in this section, “coerce”
includes threatening to terminate, cancel or fail to renew a dealership
agreement without good cause.

(2) A grantor may not coerce, or attempt to coerce, a dealer:

(a) To purchase a product that the dealer did not order;

(b) To enter into an agreement with the grantor; or

(c) To take any action that is unfair to the dealer.

(3) A grantor may not require a dealer to enter into an agreement
that requires the dealer to submit to binding arbitration. [2003 c.377 §7] (1) A dealer shall give a grantor 30
days’ notice in writing before the dealer transfers an interest in a
dealership agreement or ownership of a business that is the subject of a
dealership agreement.

(2) The dealer shall include in a notice under this section the
identity, financial ability and qualifications of the proposed transferee
and any other information required by the dealership agreement.

(3)(a) The dealer may not transfer the business to the transferee
if a grantor, within 30 days after receiving the dealer’s notice,
notifies the dealer that the grantor has reasonable grounds to object to
the proposed transferee.

(b) If the grantor does not notify the dealer as provided in this
subsection, the grantor shall accept the transfer.

(c) As used in this subsection, “reasonable grounds to object”
includes, but is not limited to, a proposed transferee’s conviction of a
felony or a lack of creditworthiness or experience to operate the
business. [2003 c.377 §8] (1) A grantor shall permit a dealer who
is an individual to change the dealer’s designation of a member of the
dealer’s family to succeed to the dealer’s interest in the dealer’s
business and dealership agreement.

(2) Upon the dealer’s death, incapacity or retirement, the grantor
shall accept the transfer of the dealer’s interest in the dealer’s
business and dealership agreement to the member of the family designated
by the dealer.

(3) Subsection (2) of this section does not apply if the grantor
notifies the designated family member that the grantor has reasonable
grounds to object to the designated family member.

(4) As used in this section and ORS 650.370, “reasonable grounds to
object” includes, but is not limited to, the designated family member’s
conviction of a felony or a lack of creditworthiness, experience to
operate the business or licenses or certificates necessary to operate the
business.

(5) A designated family member’s right to succeed to the dealer’s
interest in the dealer’s business and dealership agreement does not
include the right to relocate the dealer’s business or change the terms
of the dealership agreement. [2003 c.377 §9] (1) A warrantor shall, for a warranty
provided by the warrantor:

(a) Provide reasonable compensation to a dealer for diagnostic and
repair services;

(b) Allow a dealer reasonable periods for completing diagnostic and
repair services;

(c) Inform a dealer in writing of:

(A) The compensation that the warrantor will pay the dealer to
perform warranty service; and

(B) The time period that the warrantor will allow the dealer to
perform warranty service;

(d) Reimburse the dealer an amount equal to at least 130 percent of
the dealer’s cost of warranty parts, plus the cost to the dealer to
return warranty parts to the supplier of the parts;

(e) Approve or disapprove a dealer’s warranty service claim within
30 days of the dealer’s submission of the claim to the warrantor; and

(f) Fulfill all warranty obligations.

(2) In determining the dealer’s compensation for warranty service,
the warrantor shall:

(a) Consider the prevailing rate for labor charged by other dealers
in the communities served by the dealer’s area of sales responsibility;
and

(b) Pay the dealer a rate for labor that is not less than the
reasonable rate the dealer charges to consumers for nonwarranty service.

(3) A dealer shall submit a warranty service claim to the warrantor
within 30 days of the dealer’s completion of the warranty service.

(4) A dealer shall notify the warrantor if the dealer is unable to
perform a warranty service.

(5) If the warrantor approves a dealer’s warranty service claim or
fails to disapprove the claim within 30 days after submission, the
warrantor shall pay the warranty service claim within 45 days of the
submission of the claim.

(6) A warrantor may not disapprove a dealer’s warranty service
claim without good cause.

(7) A warrantor may disapprove a dealer’s warranty service claim if
the dealer:

(a) Failed to comply in a material respect with the warrantor’s
written policies and procedures for the performance of warranty service;

(b) Failed to properly account for the dealer’s warranty service; or

(c) Misrepresented warranty service performed or parts used.

(8) A grantor or warrantor may not:

(a) Misrepresent a dealer’s obligation to perform or pay for
warranty service; or

(b) Require a dealer to provide a warranty to a consumer for a
recreational vehicle or other product.

(9) A warrantor may audit a dealer’s records of a claim for
warranty service for a period of one year from the date the dealer
submitted the claim. If, during an audit, the warrantor discovers a
fraudulent claim, the warrantor may extend the audit period for up to one
additional year. [2003 c.377 §10] (1) A grantor or warrantor shall:

(a) Assume the liability imposed upon a dealer because of defects
in products the grantor or warrantor supplied to the dealer; and

(b) Notify a dealer of:

(A) A recall of a product.

(B) The dates by which parts and equipment, including tires and
chassis and parts of chassis, will be available to remedy defects.

(2) If a grantor or warrantor notifies a consumer of a recall of a
product, the grantor or warrantor shall inform the consumer of the dates
on which parts and equipment, including tires and chassis and parts of
chassis, will be available to remedy defects.

(3)(a) If a grantor provides parts to a dealer to perform services
pursuant to the grantor’s recall of a product, after the dealer performs
the services, the dealer may return, and the grantor shall accept, unused
parts in excess of the dealer’s needs.

(b) If a dealer returns parts under this subsection, the grantor
shall credit the dealer’s account with the cost of the parts.

(4) If a warrantor provides parts to a dealer to perform services
pursuant to the warrantor’s recall of a product, after the dealer
performs the services, the dealer may return, and the warrantor shall
accept, unused parts in excess of the dealer’s needs. [2003 c.377 §11] (1) A dealer shall:

(a) Perform warranty service in a timely and competent manner on a
recreational vehicle that the dealer did not sell or lease if:

(A) The vehicle is of the same line make the dealer offers; and

(B) The grantor or warrantor has agreed to compensate the dealer
for performing the warranty service; and

(b) Complete all predelivery inspections required by the dealership
agreement.

(2) A dealer may not intentionally misrepresent the terms of a
warranty. [2003 c.377 §12] (1) Before delivering a new
recreational vehicle to a dealer, the grantor shall notify the dealer of:

(a) Uncorrected damage to the vehicle.

(b) Corrected damage that exceeded six percent of the net invoice
cost of the vehicle to the dealer.

(2) Before selling or leasing a new recreational vehicle to a
consumer, the dealer shall:

(a) Disclose to the consumer any structural damage to the
recreational vehicle; and

(b) Obtain the consumer’s written acknowledgment of the disclosure.

(3) Subsections (1) and (2) of this section do not apply if the
damage is to the following components and the grantor or dealer has
replaced the components with substantially identical components:

(a) Audio equipment.

(b) Appliances.

(c) Bumpers.

(d) Decorations.

(e) Furniture.

(f) Glass.

(g) In-dash components.

(h) Instrument panels.

(i) Paint.

(j) Tires.

(k) Video equipment.

(L) Wheels.

(4) If a grantor selects the carrier to deliver a recreational
vehicle to a dealer, the grantor must compensate the dealer for the
dealer’s cost of repairing damage to the recreational vehicle caused by
the carrier. [2003 c.377 §13] (1) Within three days of
receiving a damaged or defective recreational vehicle from the grantor,
the dealer shall:

(a) Notify the grantor in writing of the damage or defect; and

(b)(A) Ask the grantor to permit the dealer to repair the damage or
correct the defect at the expense of the grantor; or

(B) Reject the vehicle.

(2) A dealer may reject a vehicle if, within 10 days of receiving
the dealer’s notice, the grantor does not permit a dealer to repair the
damage or correct the defect at the grantor’s expense.

(3) If a dealer rejects a vehicle, the grantor must repurchase the
vehicle within 10 business days. The repurchase price shall include the
costs of delivery and financing necessary to keep the vehicle in stock.

(4) Rejection of a vehicle releases the dealer from any obligation
to the grantor to pay for the vehicle.

(5) A dealership agreement may extend the term by which a dealer
must notify the grantor of a damaged or defective vehicle. [2003 c.377
§14]
(1) A grantor may not sell a recreational vehicle to or through a dealer
without having entered into a dealership agreement with the dealer.

(2) A grantor may not own, operate or control a dealership in this
state.

(3) Notwithstanding subsection (2) of this section, a grantor may
own, operate or control a dealership in this state if:

(a)(A) The ownership, operation or control does not exceed a period
of one year or, if the grantor can show good cause, two years; and

(B) The dealership is for sale at a reasonable price and under
reasonable terms and conditions;

(b) The grantor has entered into a bona fide agreement with a
person who, under the dealership agreement:

(A) Must make a significant investment, subject to loss, in the
dealership; and

(B) May reasonably expect to acquire the dealership in a reasonable
time and under reasonable terms and conditions; or

(c) The grantor owned, operated or controlled the dealership on
January 1, 2003. [2003 c.377 §15] (1) Notwithstanding
any dealership agreement:

(a) A grantor shall indemnify a dealer against and hold the dealer
harmless from any cost, loss or damage, including attorney fees, arising
out of a claim, action or judgment based on the grantor’s negligence or
intentional misconduct.

(b) A dealer shall indemnify a grantor against and hold the grantor
harmless from any cost, loss or damage, including attorney fees, arising
out of a claim, action or judgment based on the dealer’s negligence or
intentional misconduct.

(2)(a) A dealer shall notify the grantor of a claim or action that
is subject to subsection (1)(a) of this section within 10 days of the
dealer’s receipt of the claim or service of summons.

(b) A grantor shall notify the dealer of a claim or action that is
subject to subsection (1)(b) of this section within 10 days of the
grantor’s receipt of the claim or service of summons. [2003 c.377 §16] (1) Notwithstanding
any agreement to the contrary:

(a) A warrantor shall indemnify a dealer against and hold the
dealer harmless from any cost, loss or damage, including attorney fees,
arising out of a claim, action or judgment based on the warrantor’s
negligence or intentional misconduct.

(b) A dealer shall indemnify a warrantor against and hold the
warrantor harmless from any cost, loss or damage, including attorney
fees, arising out of a claim, action or judgment based on the dealer’s
negligence or intentional misconduct.

(2)(a) A dealer shall notify the warrantor of a claim or action
that is subject to subsection (1)(a) of this section within 10 days of
the dealer’s receipt of the claim or service of summons.

(b) A warrantor shall notify the dealer of a claim or action that
is subject to subsection (1)(b) of this section within 10 days of the
warrantor’s receipt of the claim or service of summons. [2003 c.377 §17] (1) A dealer
injured by a grantor’s violation of ORS 650.320, 650.330, 650.340,
650.350, 650.360, 650.370, 650.380, 650.400, 650.420, 650.430, 650.440 or
650.450 may bring a civil action against the grantor to recover the
dealer’s actual damages.

(2) A grantor injured by a dealer’s violation of ORS 650.370,
650.410, 650.420 or 650.450 may bring a civil action against the dealer
to recover the grantor’s actual damages.

(3) The court shall award reasonable attorney fees to the
prevailing party in an action under this section.

(4) In an action between a grantor and a dealer, the grantor bears
the burden of proving:

(a) Good cause for the grantor’s act; and

(b) The unsuitability of a dealer’s designated successor or
proposed transferee. [2003 c.377 §18] (1) A dealer
injured by a warrantor’s violation of ORS 650.390, 650.400, 650.410 or
650.460 may bring a civil action against the warrantor to recover the
dealer’s actual damages.

(2) A warrantor injured by a dealer’s violation of ORS 650.410 or
650.460 may bring a civil action against the dealer to recover the
warrantor’s actual damages.

(3) The court shall award reasonable attorney fees to the
prevailing party in an action under this section. [2003 c.377 §19]

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