61-4-202. License requirements. (1) A new motor vehicle dealer, manufacturer, distributor, factory branch, distributor branch, importer, or franchisor may not engage in business in Montana except in accordance with the requirements of this part. The provisions of this part do not apply to a public officer engaged in the discharge of official duties or to a trustee, receiver, or other officer acting under the jurisdiction of a court, to financial institutions disposing of repossessed vehicles, or to a person disposing of a personal motor vehicle. The provisions of this part regulating and licensing new motor vehicle dealers, manufacturers, distributors, factory branches, distributor branches, importers, and franchisors apply only to those new motor vehicle dealers, manufacturers, distributors, factory branches, distributor branches, importers, and franchisors of motor vehicles as defined by this part.

Terms Used In Montana Code 61-4-202

  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Dealer: means a person that, for commission or profit, engages in whole or in part in the business of buying, selling, exchanging, or accepting on consignment new or used motor vehicles, trailers, semitrailers, pole trailers, travel trailers, motorboats, sailboats, snowmobiles, off-highway vehicles, or special mobile equipment that is not registered in the name of the person. See Montana Code 61-1-101
  • Department: means the department of justice acting directly or through its duly authorized officers or agents. See Montana Code 61-1-101
  • Distributor branch: means a branch office maintained or availed of by a distributor or wholesaler for the sale of a line-make of new motor vehicles to new motor vehicle dealers in this state for directing or supervising its representatives in this state. See Montana Code 61-4-201
  • Factory branch: means a branch office maintained or availed of by a manufacturer for the sale of a line-make of new motor vehicles to distributors or for the sale of new motor vehicles to new motor vehicle dealers in this state or for directing or supervising its representatives in this state. See Montana Code 61-4-201
  • Franchise: means a contract and any agreed-to amendments between or among two or more persons when all of the following conditions are included:

    (a)a commercial relationship of definite duration or continuing indefinite duration is involved;

    (b)the franchisee is granted the right to:

    (i)offer, sell, and service in this state new motor vehicles manufactured or distributed by the franchisor; or

    (ii)service motor vehicles pursuant to the terms of a franchise and a manufacturer's warranty;

    (c)the franchisee, as an independent and separate business, constitutes a component of the franchisor's distribution system; and

    (d)the operation of the franchisee's business is substantially reliant on the franchisor for the continued supply of new motor vehicles, parts, and accessories. See Montana Code 61-4-201

  • Franchisor: means a person who manufactures, imports, or distributes new motor vehicles and who may enter into a franchise. See Montana Code 61-4-201
  • Importer: means a person who transports or arranges for the transportation of a foreign manufactured new motor vehicle into the United States for sale in this state. See Montana Code 61-4-201
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Line-make: means vehicles that are offered for sale, lease, or distribution under a common name, trademark, or service mark. See Montana Code 61-4-201
  • Manufacturer: means a person who manufactures or assembles a line-make of new motor vehicles and distributes them directly or indirectly through one or more distributors to one or more new motor vehicle dealers in this state or who manufactures or installs on previously assembled truck chassis special bodies or equipment that, when installed, forms an integral part of the new motor vehicle and that constitutes a major manufacturing alteration, but does not include a person who installs a camper on a pickup truck. See Montana Code 61-4-201
  • Motor vehicle: includes a motorboat and a personal watercraft as defined in 23-2-502, a snowmobile as defined in 23-2-601, and an off-highway vehicle as defined in 23-2-801. See Montana Code 61-4-201
  • New motor vehicle: means a motor vehicle that has not been the subject of a retail sale regardless of the mileage of the vehicle. See Montana Code 61-4-201
  • New motor vehicle dealer: means a person who buys, sells, exchanges, or offers or attempts to negotiate a sale or exchange or any interest in or who is engaged in the business of selling new motor vehicles under a franchise with the manufacturer of the new motor vehicles or used motor vehicles taken in trade on new motor vehicles. See Montana Code 61-4-201
  • person: means an individual, corporation, partnership, limited partnership, limited liability company, association, joint venture, state agency, local government unit, another state government, the United States, a political subdivision of this or another state, or any other legal or commercial entity. See Montana Code 61-1-101
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
  • Trustee: A person or institution holding and administering property in trust.
  • Vehicle: means a device in, on, or by which any person or property may be transported or drawn on a public highway, except devices moved by animal power or used exclusively on stationary rails or tracks. See Montana Code 61-1-101

(2)A manufacturer, distributor, factory branch, distributor branch, importer, or franchisor transacting business within Montana by offering, selling, trading, consigning, or otherwise transferring a new motor vehicle to a new motor vehicle dealer must be licensed by the state of Montana. The department shall issue licenses to qualified applicants upon receipt of a license fee in the amount of $15 accompanied by the information required in this section.

(3)The following information, if applicable, must be submitted by an applicant upon forms supplied by the department:

(a)the name and address of the applicant;

(b)the make and model of each new motor vehicle to be franchised;

(c)the name and address of each of the applicant’s franchisees within the state;

(d)the name and address of each factory branch, distributor branch, agent, or representative within the state; and

(e)a statement affirming that the relationship between the applicant and the new motor vehicle dealer is subject to the terms and conditions of a standard written franchise agreement applicable to all its new motor vehicle dealers in this state. A copy of the standard written franchise agreement, including all standard terms and conditions applicable to all franchised dealers or distributors in this state must be filed with the application unless the standard written franchise agreement is already on file with the department. Any revision of or additions to the standard basic franchise agreement must be filed with the department within 30 days of dissemination to the new motor vehicle dealers in this state.

(4)A license may be renewed each year if the applicant is in compliance with the provisions of this part, remits a renewal fee in the amount of $15, and notifies the department of any changes in the information previously supplied.

(5)(a) A new motor vehicle may not be sold in this state unless either the manufacturer on direct dealership of domestic motor vehicles, the importer of foreign manufactured motor vehicles on direct dealership, or the distributor on indirect dealerships of either domestic or foreign motor vehicles is licensed as provided in this part.

(b)Notwithstanding any other licensing provision contained in Montana law, every new motor vehicle dealer shall obtain a license under part 1 of this chapter.

(c)The obtaining of a license under Title 61, chapter 4, part 1, or this part conclusively establishes that a new motor vehicle dealer, manufacturer, distributor, or importer is subject to the laws of this state regulating new motor vehicle dealers, manufacturers, importers, and distributors.

(6)When an objection to a proposal to terminate or not continue a franchise or a proposal to enter into a franchise establishing an additional new motor vehicle dealership of the same line-make is made pursuant to 61-4-206, a replacement license or new license may not be issued under this section to any replacement dealer or new dealer until adjudication by the department of the written objection filed pursuant to 61-4-206 and the exhaustion of all appellate remedies available to the objector.

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