[Previous] [Next]
§47-565.1.
§47-565.1.
Notwithstanding the terms of any franchise agreement, and subject to
the following conditions contained in paragraphs 1 through 5 of this
section, any manufacturer or distributor who prevents or refuses to
honor the succession to a dealership by any legal heir or devisee
under the will of a new motor vehicle dealer or under the laws of
descent and distribution of this state without good cause or good
faith, as defined in this section, shall be subject to the following
procedure:
1. Within one hundred twenty (120) days after the death of the new
motor vehicle dealer, the manufacturer shall receive a written notice
from any legal heir or devisee who intends to establish a successor
dealership. If timely notice is not so received, then this paragraph
shall not apply, and any succession shall be governed solely by the
terms of the franchise;
2. Within thirty (30) days of receipt of the legal heir's or devisee's
timely written notice, the manufacturer may request, and the legal
heir or devisee shall, within a reasonable time, provide any
information which is reasonably necessary for the manufacturer to
evaluate the proposed successor dealer and dealership, including, but
not limited to, applications, proposals for facilities and financing;
3. Within sixty (60) days of receipt of such information, the
manufacturer shall approve or disapprove the proposed successor
dealership, and in case of disapproval shall communicate in writing
such disapproval and grounds for disapproval to the legal heir or
devisee;
4. Failure of the manufacturer to act in a timely manner with respect
to any time period described above shall constitute a waiver of the
manufacturer's right to disapprove the proposed succession;
5. Within ten (10) days of its receipt of the manufacturer's notice of
disapproval, the legal heir or devisee may file a protest of the
manufacturer's decision with the Commission and request a hearing.
Such hearing shall be heard in a substantially similar manner as
provided by Section 566 of Title 47 of the Oklahoma Statutes, except
that the Commission shall render a final decision within sixty (60)
days of the filing of the protest. The manufacturer shall have the
burden of proof to show that its disapproval was for a good cause and
in good faith. The disapproval by the manufacturer shall be final if
the legal heir or devisee fails to file a timely protest of such
disapproval. In the event that the Commission finds that the
manufacturer's disapproval was not made for good cause, then it shall
issue a final order requiring the manufacturer to honor the successor
designated in the notice sent by the legal heir or devisee.
Notwithstanding anything to the contrary in this section, a new motor
vehicle dealer may designate any person as his successor by filing a
written instrument pursuant to the franchise with the manufacturer
during the new motor vehicle dealer's lifetime. In such a case, the
written instrument and franchise shall govern the dealership
succession.
The suspension, revocation or refusal to issue or renew a license or
the imposition of any other penalty by the Commission shall be in
addition to any penalty which might be imposed upon any licensee upon
judgment or conviction in a court of competent jurisdiction for any
violation of the provisions of Sections 561 through 567, 572, 578 and
579 of this title and Section 17 of this act.
[Previous] [Next]