445.1561 Short title; Meanings of words and phrases. Sec. 1. (1) This act shall be known and may be cited as the “motor vehicle franchise act”. (2) For the purposes of this act, the words and phrases defined in sections 2 to 6 have the meanings ascribed to them in those sections, except where the […]
445.1562 Definitions; C, D. Sec. 2. (1) “Closed dealership” means a new motor vehicle dealer whose dealer agreement has been terminated, canceled, discontinued, or not renewed. (2) “Coerce” means to compel or attempt to compel a person to act in a given manner or to refrain from acting in a given manner by pressure, intimidation, […]
445.1563 Definitions; D to F. Sec. 3. (1) “Distributor” means any person, including importer, that is located in or outside of this state and is engaged in the business of offering for sale, selling, or distributing new and unaltered motor vehicles to a new motor vehicle dealer under a dealer agreement, that maintains a factory […]
445.1564 Definitions; G to M. Sec. 4. (1) “Good faith” means that term as defined in section 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201. (2) “Good moral character” means good moral character as defined in and determined under 1974 PA 381, MCL 338.41 to 338.47. (3) “Line-make” means a collection of […]
445.1565 Definitions; N to P. Sec. 5. (1) “New motor vehicle” means a motor vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold only to a new motor vehicle dealer and for which the new motor vehicle dealer has not issued an original title. (2) “New motor vehicle […]
445.1566 Definitions; R to U. Sec. 6. (1) “Relevant market area” means 1 of the following: (a) In a county that has a population of more than 150,000, the area within a radius of 9 miles of the site of the intended place of business of a proposed new vehicle dealer or the intended place […]
445.1567 Cancellation, termination, nonrenewal, or discontinuance of dealer agreement; conditions; existence of good cause; failure to comply with agreement; notification; evidence in writing. Sec. 7. (1) Notwithstanding any agreement, a manufacturer or distributor shall not cancel, terminate, fail to renew, or refuse to continue any dealer agreement with a new motor vehicle dealer unless the […]
445.1568 Acts not constituting good cause for termination, cancellation, nonrenewal, or discontinuance of dealer agreement. Sec. 8. Notwithstanding any agreement, the following alone shall not constitute good cause for the termination, cancellation, nonrenewal, or discontinuance of a dealer agreement under section 7(1)(c): (a) A change in ownership of the new motor vehicle dealer’s dealership. This […]
445.1569 Burden of proof. Sec. 9. For each termination, cancellation, nonrenewal, or discontinuance, the manufacturer or distributor shall have the burden of proof for showing that it has acted in good faith, that the notice requirement has been complied with, and that there was good cause for the termination, cancellation, nonrenewal, or discontinuance. History: 1981, […]
445.1570 Notice of termination, cancellation, nonrenewal, or discontinuance of dealer agreement. Sec. 10. Notwithstanding any agreement, prior to the termination, cancellation, nonrenewal, or discontinuance of any dealer agreement, the manufacturer or distributor shall furnish notice of the termination, cancellation, nonrenewal, or discontinuance to the new motor vehicle dealer as follows: (a) Except as provided in […]
445.1571 Compensation of dealer generally. Sec. 11. (1) Subject to section 12, if a manufacturer terminates, cancels, does not renew, or discontinues a dealer agreement for any reason other than a reason described in section 10(c), or if a dealer agreement is terminated, canceled, nonrenewed, or discontinued as a result of coercion by the manufacturer, […]
445.1572 Payment of compensation; time; determination of amount; interest; definitions. Sec. 12. (1) A manufacturer shall pay the compensation for new motor vehicle inventory and items of personal property required under section 11(1) within 60 days after the effective date of the termination, cancellation, nonrenewal, or discontinuance, provided that the new motor vehicle dealer has […]
445.1573 Requiring dealer to perform certain duties prohibited; definitions. Sec. 13. (1) A manufacturer shall not require any new motor vehicle dealer in this state to do any of the following: (a) Order or accept delivery of any new motor vehicle, a part or accessory of a new motor vehicle, equipment, or any other commodity […]
445.1574 Prohibited conduct by manufacturer. Sec. 14. (1) A manufacturer shall not do any of the following: (a) Adopt, change, establish, or implement a plan or system for the allocation and distribution of new motor vehicles to new motor vehicle dealers that is arbitrary or capricious or based on unreasonable sales and service standards, or […]
445.1574a Property use agreement not required as condition; exception; termination of agreement between manufacturer and new motor vehicle dealer; effect of inconsistent provision; “property use agreement” defined. Sec. 14a. (1) A manufacturer shall not require that a new motor vehicle dealer, a proposed new motor vehicle dealer, or any owner of an interest in a […]
445.1574b Right of first refusal; conditions; liability; definitions. Sec. 14b. (1) A manufacturer shall not exercise a right of first refusal or other right to acquire a new motor vehicle dealership from a new motor vehicle dealer, unless the manufacturer does all of the following: (a) Within 75 days after the manufacturer receives a complete […]
445.1575 Succession to dealership by designated family member of deceased or incapacitated dealer or executive manager of dealership; conditions; refusal to honor existing dealer agreement for good cause; personal and financial information; notice of refusal to approve succession; contents; service; designation of successor by written instrument. Sec. 15. (1) If a new motor vehicle dealer […]
445.1576 Establishment or relocation of additional dealer; notice; declaratory judgment action; exception; judicial determination of good cause. Sec. 16. (1) As used in this section, “relocate” and “relocation” shall not include the relocation of a new motor vehicle dealer within 2 miles of its established place of business. (2) Before a manufacturer or distributor enters […]
445.1577 Dealer’s obligations for preparation, delivery, and warranty service; written specifications; compensating dealer for required warranty service; schedule of compensation; prohibited conduct; claims for labor and parts; payment; approval or disapproval; charge back for false or fraudulent claims; records of warranty repairs; compensation and claims for promotion events, programs, or activities; approval or disapproval of […]
445.1577a Reasonable compensation for parts reimbursement and labor rates; factors. Sec. 17a. (1) The principal factors in determining what constitutes reasonable compensation for parts reimbursement and labor rates for purposes of section 17(1) are as follows: (a) The retail price charged for parts by other similarly situated new motor vehicle dealers in a comparable geographic […]
