Iowa Code 322A.1 – Definitions
Current as of: 2023 | Check for updates
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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.
Terms Used In Iowa Code 322A.1
- Community: means the franchisee's area of responsibility as stipulated in the franchise. See Iowa Code 322A.1
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the state department of transportation. See Iowa Code 322A.1
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Franchise: includes a separate written agreement between the franchisee and the franchiser which materially affects the franchise, whether entered into prior to the date of the franchise, contemporaneously with the franchise, or subsequent to the date of the franchise. See Iowa Code 322A.1
- Franchisee: means a person who receives motor vehicles from the franchiser under a franchise and who offers and sells such motor vehicles to the general public. See Iowa Code 322A.1
- Franchiser: means a person who manufactures or distributes motor vehicles and who may enter into a franchise as hereinafter defined. See Iowa Code 322A.1
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means a sole proprietor, partnership, corporation, or any other form of business organization. See Iowa Code 322A.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- Vehicle: means any vehicle as defined in chapter 321. See Iowa Code 321H.2
- Warranty: means any written warranty issued by the manufacturer; or any affirmation of fact or promise made by the manufacturer, excluding statements made by the dealer, in connection with the sale or lease of a motor vehicle to a consumer, which relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance. See Iowa Code 322G.2
2. “Community” means the franchisee‘s area of responsibility as stipulated in the franchise.
3. “Consumer care” means to perform, for the public, necessary maintenance and repairs to motor vehicles.
4. “Department” means the state department of transportation.
5. a. “Franchise” means a contract between two or more persons when all of the following conditions are included:
(1) A commercial relationship of definite duration or continuing indefinite duration is involved.
(2) The franchisee is granted the right to offer and sell motor vehicles manufactured or distributed by the franchiser.
(3) The franchisee, as an independent business, constitutes a component of the franchiser’s distribution system.
(4) The operation of the franchisee’s business is substantially associated with the franchiser’s trademark, service mark, trade name, advertising, or other commercial symbol designating the franchiser.
(5) The operation of the franchisee’s business is substantially reliant on the franchiser for the continued supply of motor vehicles, parts, and accessories.
b. “Franchise” includes a separate written agreement between the franchisee and the franchiser which materially affects the franchise, whether entered into prior to the date of the franchise, contemporaneously with the franchise, or subsequent to the date of the franchise.
6. “Franchisee” means a person who receives motor vehicles from the franchiser under a franchise and who offers and sells such motor vehicles to the general public.
7. “Franchiser” means a person who manufactures or distributes motor vehicles and who may enter into a franchise as hereinafter defined.
8. “Motor vehicle” means “motor vehicles” as defined in chapter 321 which are subject to registration pursuant to the provisions thereof.
9. “Person” means a sole proprietor, partnership, corporation, or any other form of business organization.
10. “Substantially detrimental” means that, by a preponderance of the evidence, the market share of the franchiser’s motor vehicles in the community will be significantly reduced in comparison to the franchiser’s historical market share in the community.
11. “Termination or noncontinuance” includes a reduction of the geographic area of a community.