South Dakota Codified Laws 37-5-15. Certain terms or conditions in dealership contract or lease prohibited–Not applicable to lease or sale of real property
No manufacturer may require a dealer to agree to the inclusion of a term or condition in a dealership contract, or in any lease or agreement ancillary or collateral to a dealership contract, as a condition to the offer, grant, or renewal of such dealership contract, lease, or agreement, that:
(1) Requires the dealer to waive trial by jury in cases involving the manufacturer;
Terms Used In South Dakota Codified Laws 37-5-15
- Contract: A legal written agreement that becomes binding when signed.
- 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
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
(2) Requires that disputes between the manufacturer and dealer be submitted to arbitration or to any other binding alternate dispute resolution procedure. However, any dealership contract, lease, or agreement may authorize the submission of a dispute to arbitration or to binding alternate dispute resolution if the manufacturer and dealer voluntarily agree to submit the dispute to arbitration or binding alternate dispute resolution at the time the dispute arises; or
(3) Requires a dealer to pay the attorney fees of a manufacturer.
This section does not apply to any agreement that has as its main objective the lease or sale of real property.
Source: SL 1999, ch 200, § 3.