322A.1 Definitions. When used in this chapter, unless the context otherwise requires: 1. “Additional motor vehicle dealership” includes a facility providing manufacturer-authorized or distributor-authorized service or warranty work for motor vehicles, except motor homes, of a line-make in a community in which the same line-make is represented. 2. “Community” means the franchisee’s area of responsibility […]
322A.10 Rules of evidence. 1. The rules of civil procedure relating to discovery and inspection shall apply to hearings held under the provisions of this chapter, and the department of inspections and appeals may issue orders to give effect to such rules. 2. In the event issues are raised which would involve violations of any […]
322A.11 Condition barring change in franchise. Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the following shall not be considered facts supporting a finding of good cause for the termination or noncontinuation of a franchise, or for entering into a franchise for the establishment of an additional dealership in a community for […]
322A.12 Sale or transfer of ownership. 1. Notwithstanding the terms, provisions, or conditions of an agreement or franchise, subject to the provisions of section 322A.11, subsection 2, in the event of the sale or transfer of ownership of a franchisee’s dealership by sale or transfer of the business or by stock transfer or in the […]
322A.13 Compulsory attendance at hearings. The department of inspections and appeals may issue subpoenas, administer oaths, compel the attendance of witnesses and production of books, papers, documents, and all other evidence. The department of inspections and appeals may apply to the district court of the county wherein the hearing is being held for a court […]
322A.14 License to dealer denied. In the event that a franchiser enters into or attempts to enter into a franchise, whether upon termination or refusal to continue another franchise or upon the establishment of an additional motor vehicle dealership in a community where the same line-make is then represented, without first complying with the provisions […]
322A.15 Guidelines. 1. In determining whether good cause has been established for terminating or not continuing a franchise, the department of inspections and appeals shall take into consideration the existing circumstances, including, but not limited to: a. Amount of business transacted by the franchisee. b. Investment necessarily made and obligations incurred by the franchisee in […]
322A.16 Additional guidelines. In determining whether good cause has been established for entering into an additional franchise for the same line-make, the department of inspections and appeals shall take into consideration the existing circumstances, including, but not limited to: 1. Amount of business transacted by other franchisees of the same line-make in that community. 2. […]
322A.17 Review. 1. A decision of the department of inspections and appeals is subject to review by the state department of transportation, whose decision is final agency action for the purpose of judicial review. 2. Judicial review of actions of the state department of transportation may be sought in the manner provided for in section […]
322A.18 Duty of good faith. A franchise imposes on the parties a duty of good faith in performance and enforcement of the franchise agreement. “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. 2010 Acts, ch 1081, §2
322A.19 Jurisdiction. 1. A condition, stipulation, or provision in a franchise restricting jurisdiction to a forum outside this state is void. 2. A condition, stipulation, or provision in a franchise providing that the franchisee consents to the jurisdiction of a forum outside this state is void. 3. A civil action or proceeding arising out of […]
322A.2 Discontinuing franchise. 1. Unless otherwise provided in subsection 2, notwithstanding the terms, provisions, or conditions of any agreement or franchise, a franchiser shall not terminate or refuse to continue any franchise unless the franchiser has first established, in a hearing held under the provisions of this chapter, that both of the following apply: a. […]
322A.20 Choice of law. 1. A condition, stipulation, or provision in a franchise requiring the application of the law of another state in lieu of this chapter is void. 2. A condition, stipulation, or provision in a franchise that the franchise is to be governed by or construed in accordance with the law of another […]
322A.21 Waivers void. A condition, stipulation, or provision in a franchise requiring a franchisee to waive compliance with or relieving a person of a duty or liability imposed by or a right provided by this chapter or order under this chapter is void. This section shall not affect the settlement of disputes, claims, controversies or […]
322A.22 Other line-makes. A condition, stipulation, or provision in a franchise prohibiting or restricting the franchisee from continuing another line-make at the dealership or adding an additional line-make to the dealership is void. This section does not limit a franchiser from establishing good cause for the termination of a franchise pursuant to sections 322A.2 and […]
322A.23 Customer lists. A condition, stipulation, or provision in a franchise which requires the franchisee to provide its customer lists or service files to the franchiser is void. This section shall not apply to notification by the franchisee to the franchiser of the delivery of a new motor vehicle to a customer, including information necessary […]
322A.24 Construction. This chapter shall be liberally construed to effectuate its purposes. 2010 Acts, ch 1081, §8
322A.3 New franchise. In the event that a franchiser is permitted to terminate or not continue a franchise, and is further permitted not to enter into a franchise for the line-make in the community, no franchise shall thereafter be entered into for the sale of motor vehicles of that line-make in the community, unless the […]
322A.3A Alteration of franchise. 1. A franchiser shall not unreasonably alter a franchisee’s community. 2. A franchiser shall notify a franchisee of a proposed alteration to the franchisee’s community at least sixty days prior to the effective date of the proposed alteration. Within thirty days of a request by the affected franchisee, unless otherwise provided […]
322A.4 Additional franchise. No franchiser shall enter into any franchise for the purpose of establishing an additional motor vehicle dealership in any community in which the same line-make is then represented, unless the franchiser has first established in a hearing held under the provisions of this chapter that there is good cause for such additional […]
