13-14-304. Hearing regarding termination, relocation, or establishment of franchises.
(1)
Terms Used In Utah Code 13-14-304
Affected municipality: means an incorporated city or town:
(a)
that is located in the notice area; and
(b)
(i)
within which a franchisor is proposing a new or relocated dealership that is within the relevant market area of an existing dealership of the same line-make owned by another franchisee; or
(ii)
within which an existing dealership is located and a franchisor is proposing a new or relocated dealership within the relevant market area of that existing dealership of the same line-make. See Utah Code 13-14-102
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
Dealership: means a site or location in this state:
(a)
at which a franchisee conducts the business of a new motor vehicle dealer; and
(b)
that is identified as a new motor vehicle dealer's principal place of business for licensing purposes under Section 41-3-204. See Utah Code 13-14-102
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.
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
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
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
Within 10 days after the day on which the advisory board receives an application from a franchisee under Subsection 13-14-301(3) challenging a franchisor‘s right to terminate or not continue a franchise, or an application under Section 13-14-302 challenging the establishment or relocation of a franchise, the executive director shall:
(i)
enter an order designating the time and place for the hearing; and
(ii)
send a copy of the order by certified or registered mail, with return receipt requested, or by any form of reliable delivery through which receipt is verifiable to:
(A)
the applicant;
(B)
the franchisor; and
(C)
if the application involves the establishment of a new franchise or the relocation of an existing dealership, each affected municipality and to each franchisee in the relevant market area engaged in the business of offering to sell or lease the same line-make.
(b)
A copy of an order mailed under Subsection (1)(a) shall be addressed to the franchisee at the place where the franchisee’s business is conducted.
(2)
An affected municipality and any other person who can establish an interest in the application may intervene as a party to the hearing, whether or not that person receives notice.
(3)
Any person, including an affected municipality, may appear and testify on the question of the public interest in the termination or noncontinuation of a franchise or in the establishment of an additional franchise.
(4)
(a)
(i)
Any hearing ordered under Subsection (1) shall be conducted no later than 90 days after the day on which the application for hearing is filed.
(ii)
A final decision on the challenge shall be made by the executive director no later than 20 days after the day on which the hearing ends.
(b)
Failure to comply with the time requirements of Subsection (4)(a) is considered a determination that the franchisor acted with good cause or, in the case of a protest of a proposed establishment or relocation of a dealer, that good cause exists for permitting the proposed additional or relocated new motor vehicle dealer, unless:
(i)
the delay is caused by acts of the franchisor or the additional or relocating franchisee; or
(ii)
the delay is waived by the parties.
(5)
The franchisor has the burden of proof to establish by a preponderance of the evidence that under the provisions of this chapter it should be granted permission to:
(a)
terminate or not continue the franchise;
(b)
enter into a franchise agreement establishing an additional franchise; or
(c)
relocate the dealership of an existing franchisee.
(6)
Any party to the hearing may appeal the executive director’s final decision in accordance with Title 63G, Chapter 4, Administrative Procedures Act, including the franchisor, an existing franchisee of the same line-make whose relevant market area includes the site of the proposed dealership, or an affected municipality.
