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Home » US Law » 2022 South Dakota Codified Laws » Title 37 - Trade Regulation » Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment

Section 37-5-1 – Coercion of dealer to force unwanted purchases as misdemeanor.

37-5-1. Coercion of dealer to force unwanted purchases as misdemeanor. It is a Class 1 misdemeanor for any manufacturer, factory, branch, distributor, or distributor-branch, or any field representative, officer, agent, or representative of any of them to coerce or attempt to coerce any dealer to purchase or accept delivery of any merchandise, repair parts for […]

Section 37-5-11 – Restriction of jurisdiction or venue to out-of-state forum or requiring application of foreign law prohibited.

37-5-11. Restriction of jurisdiction or venue to out-of-state forum or requiring application of foreign law prohibited. Any provision in any agreement evidenced by a franchise agreement, sales agreement, security agreement, or other form of agreement or arrangement of like effect between any wholesaler, manufacturer, distributor of farm machinery or implements, or distributor of industrial or […]

Section 37-5-12 – Waiver of law void.

37-5-12. Waiver of law void. Any condition, stipulation, or provision in any agreement evidenced by a franchise agreement, sales agreement, security agreement, or other form of agreement or arrangement of like effect, purporting to waive compliance with any provision of this chapter, or other provision of state law applying to such agreements is void as […]

Section 37-5-12.1 – Dealer defined.

37-5-12.1. Dealer defined. For the purposes of §§37-5-1 to 37-5-12, inclusive, the term, dealer, means any person, or the person’s successor who, for commission or with intent to make a profit or gain, sells, exchanges, rents, leases with the option to purchase, or offers or attempts to negotiate a sale or exchange any merchandise as […]

Section 37-5-12.2 – Merchandise defined.

37-5-12.2. Merchandise defined. For the purposes of §§37-5-1 to 37-5-12, inclusive, the term, merchandise, means: (1)Automobiles, trucks, motorcycles, motor homes or travel trailers of the type and kind required to be titled and registered pursuant to chapters 32-3 and 32-5, and accessories; (2)Farm tractors, farm implements, farm machinery, and attachments; (3)Industrial and construction equipment and […]

Section 37-5-12.3 – Contract defined.

37-5-12.3. Contract defined. For the purposes of §§37-5-1 to 37-5-12, inclusive, the term, contract, means any written franchised agreement, sales agreement, dealer agreement, or security agreement, or other form of agreement or arrangement of like effect and its successor. Source: SL 2004, ch 254, §3.

Section 37-5-12.4 – Merchandise manufacturer or supplier compensation of dealer for diagnostic and warranty work.

37-5-12.4. Merchandise manufacturer or supplier compensation of dealer for diagnostic and warranty work. Any manufacturer or supplier of merchandise as defined in subdivision 37-5-12.2(5), (8), or (9) that authorizes a dealer of such merchandise to perform the warranty work is obligated to provide that dealer reasonable compensation for diagnostic work, as well as repair service, […]

Section 37-5-13 – Definition of terms used in §§ 37-5-13 to 37-5-15.

37-5-13. Definition of terms used in §§37-5-13 to 37-5-15. Terms used in §§37-5-13 to 37-5-15, inclusive, mean: (1)”Dealer,” any person who receives machinery from a manufacturer under a dealership contract and who offers and sells the machinery to the general public from manufacturer authorized facilities in this state. The term, dealer, does not include a […]

Section 37-5-14 – Certain circumstances not cause for termination of dealership contract or entering into new dealership contract.

37-5-14. Certain circumstances not cause for termination of dealership contract or entering into new dealership contract. The following circumstances are not cause for the termination or discontinuance of a dealership contract, nor for entering into a dealership contract for the establishment of an additional dealership in a community for the same line-make: (1)The change of […]

Section 37-5-16 – Definitions.

37-5-16. Definitions. Terms used in §§37-5-16 to 37-5-18, inclusive, shall only be used for the purposes of §§37-5-16 to 37-5-18, inclusive, and mean: (1)”Retailer of outdoor power equipment,” a business that purchases outdoor power equipment for resale including: light industrial lawn and garden equipment, handheld lawn and garden equipment, snow removal equipment, and small engines […]

Section 37-5-17 – Manufacturer of outdoor power equipment required to compensate retailer for warranty work–Amount of compensation.

37-5-17. Manufacturer of outdoor power equipment required to compensate retailer for warranty work–Amount of compensation. Any manufacturer of outdoor power equipment that authorizes the retailer of outdoor power equipment selling such equipment to perform the warranty work shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor to the retailer. […]

Section 37-5-18 – Inapplicability of §§ 37-5-16 and 37-5-17 where only method of sales is through retailer with exclusive trade territory.

37-5-18. Inapplicability of §§37-5-16 and 37-5-17 where only method of sales is through retailer with exclusive trade territory. The provisions of §§37-5-16 and 37-5-17 do not apply if the manufacturer’s only method of sales is a contract with the retailer that provides for an exclusive trade territory and requires the retailer to make warranty repairs […]

Section 37-5-19 – Civil action for violation of chapter.

37-5-19. Civil action for violation of chapter. Any dealer, as defined in §37-5-12.1 or subdivision 37-5-13(1), whose business or property is injured by a violation of this chapter may bring a civil action to recover all court costs and reasonable attorney’s fees in addition to all other remedies of law. Source: SL 2012, ch 197, […]

Section 37-5-2 – Coercion of dealer to control sales or force expenditures as misdemeanor.

37-5-2. Coercion of dealer to control sales or force expenditures as misdemeanor. It is a Class 1 misdemeanor for any manufacturer, factory, branch, distributor, or distributor-branch, or any field representative, officer, agent, or representative of any of them to coerce or attempt to coerce any dealer to enter into any agreement with the manufacturer, factory, […]

Section 37-5-3 – Unfair cancellation of dealer franchise as misdemeanor.

37-5-3. Unfair cancellation of dealer franchise as misdemeanor. It is a Class 1 misdemeanor for any manufacturer, factory, branch, distributor, or distributor-branch, or any field representative, officer, agent, or representative of any of them, unfairly, without due regard to the equities of the dealer and without just provocation, to cancel the franchise of any dealer. […]

Section 37-5-4 – Civil liability for damages from violation.

37-5-4. Civil liability for damages from violation. Each and every person and corporation who or which violates any provision of §§37-5-1 to 37-5-3, inclusive, shall be liable to any dealer damaged thereby for all damages caused to such dealer by such violation. Source: SL 1951, ch 262, §2; SDC Supp 1960, §54.9911; SL 1977, ch […]

Section 37-5-5 – Cancellation of contract–Recovery of costs and charges by dealer–Transfer of title and possession.

37-5-5. Cancellation of contract–Recovery of costs and charges by dealer–Transfer of title and possession. If any dealer enters into a written contract; if the dealer maintains a stock of merchandise or repair parts for the merchandise with any wholesaler, manufacturer, or distributor; and if either the wholesaler, manufacturer, or distributor, or their successors, or the […]

Section 37-5-5.5 – Reimbursement for computer and signage costs incurred under requirements of wholesaler, manufacturer or distributor.

37-5-5.5. Reimbursement for computer and signage costs incurred under requirements of wholesaler, manufacturer or distributor. A wholesaler, manufacturer, or distributor shall also repurchase from the dealer and the dealer shall sell any specialized computer hardware or software, specialized tool, or signage which the wholesaler, manufacturer, or distributor required the dealer to purchase or lease as […]