Except as provided in Subsection (2), a franchisor may not terminate or refuse to continue a franchise agreement or the rights to sell and service a line-make pursuant to a franchise agreement, whether through termination or noncontinuance of the franchise, termination or noncontinuance of a line-make, or otherwise, unless:
Terms Used In Utah Code 13-14-301
Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
board: means the Utah Motor Vehicle Franchise Advisory Board created in Section 13-14-103. See Utah Code 13-14-102
Executive director: means the executive director of the Department of Commerce. See Utah Code 13-14-102
franchise agreement: includes a sales and service agreement. See Utah Code 13-14-102
Franchisee: means a person with whom a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale new motor vehicles manufactured, produced, represented, or distributed by the franchisor. See Utah Code 13-14-102
Franchisor: means a person who has, in writing or in practice, agreed with or permits a franchisee to purchase, sell, or offer for sale new motor vehicles manufactured, produced, assembled, represented, or distributed by the franchisor, and includes:
(a)
the manufacturer, producer, assembler, or distributor of the new motor vehicles;
(b)
an intermediate distributor; and
(c)
an agent, officer, or field or area representative of the franchisor. See Utah Code 13-14-102
Line-make: means :
(a)
for other than a recreational vehicle, the motor vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor; or
(b)
for a recreational vehicle, a specific series of recreational vehicle product that:
(i)
is identified by a common series trade name or trademark;
(ii)
is targeted to a particular market segment, as determined by decor, features, equipment, size, weight, and price range;
(iii)
has a length and floor plan that distinguish the recreational vehicle from other recreational vehicles with substantially the same decor, features, equipment, size, weight, and price;
(iv)
belongs to a single, distinct classification of recreational vehicle product type having a substantial degree of commonality in the construction of the chassis, frame, and body; and
New motor vehicle dealer: is a person who is licensed under Subsection 41-3-202(1) to sell new motor vehicles. See Utah Code 13-14-102
(a)
the franchisee has received written notice from the franchisor 60 days before the effective date of termination or noncontinuance setting forth the specific grounds for termination or noncontinuance that are relied on by the franchisor as establishing good cause for the termination or noncontinuance;
(b)
the franchisor has good cause for termination or noncontinuance; and
(c)
the franchisor is willing and able to comply with Section 13-14-307.
(2)
A franchisor may terminate a franchise, without complying with Subsection (1):
upon a mutual written agreement of the franchisor and franchisee.
(3)
(a)
At any time before the effective date of termination or noncontinuance of the franchise, the franchisee may apply to the advisory board for a hearing on the merits, and following notice to all parties concerned, the hearing shall be promptly held as provided in Section 13-14-304.
(b)
A termination or noncontinuance subject to a hearing under Subsection (3)(a) may not become effective until:
(i)
final determination of the issue by the executive director; and
(ii)
the applicable appeal period has lapsed.
(4)
A franchisee may voluntarily terminate its franchise if the franchisee provides written notice to the franchisor at least 30 days prior to the termination.
