(a) Upon the termination of a new motor vehicle dealer’s franchise agreement by the manufacturer or distributor, the manufacturer or distributor shall repurchase from the new motor vehicle dealer at
Terms Used In Alaska Statutes 45.25.140
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(1) the new motor vehicle dealer’s net acquisition cost, if the motor vehicles have not been materially altered or damaged, all inventory consisting of unsold new motor vehicles that are current models;(2) the new motor vehicle dealer’s net acquisition cost, new motor vehicle models from the previous year that have been acquired from the manufacturer within the past two years before receipt of the notice of termination, but an adjustment based on mileage over 500 miles may be made;(3) the new motor vehicle dealer price listed in the current manufacturer’s parts catalog, less applicable allowances, new unused undamaged parts in their original, unbroken packaging and acquired from the manufacturer or distributor;(4)fair market value, signs, equipment, and furnishings that bear the manufacturer’s trademark or trade name, that have not been altered or damaged, and that were required by the manufacturer or distributor within five years preceding the notice of termination;(5) the new motor vehicle dealer’s net acquisition cost, special tools that have not been altered or materially damaged and that were purchased from the manufacturer or distributor within three years preceding the date of the termination; and(6) the lesser of the fair market value or the depreciated value, all manufacturer required computers, printers, and other electronic hardware, and electronic software, except that, if the new motor vehicle dealer leases the computers, printers, or other electronic hardware, or electronic software, the manufacturer shall pay the new motor vehicle dealer the amount of money that is required for the new motor vehicle dealer to terminate the lease under the lease agreement.(b) Within 90 days after the effective date of the termination, the new motor vehicle dealer shall return the property required by (a) of this section to be repurchased to the manufacturer or distributor at the manufacturer’s or distributor’s expense. The manufacturer or distributor shall pay the compensation for the property within 60 days after the tender of inventory and other items if the new motor vehicle dealer has clear title to the property and is in a position to convey that title to the manufacturer or distributor. If the property is subject to a security interest, the manufacturer or distributor may make payment jointly to the new motor vehicle dealer and the holder of the security interest, and the manufacturer or distributor may offset these payments.
