This section applies only to a recreational vehiclefranchisee‘s termination, cancellation, or nonrenewal of:
Terms Used In Utah Code 13-14-307.5
Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
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
Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
A recreational vehicle franchisee may, at any time and with or without good cause, terminate, cancel, or not renew its recreational vehicle franchise agreement or a recreational vehicle line-make by giving 30 days’ prior written notice to the recreational vehicle franchisor.
(b)
A franchisee has the burden of showing that a termination, cancellation, or nonrenewal is for good cause.
(c)
Good cause for a franchisee’s termination, cancellation, or nonrenewal is considered to exist if:
(i)
the franchisor is convicted of or enters a plea of nolo contendere to a felony;
(ii)
the business operations of the franchisor are:
(A)
abandoned; or
(B)
closed for 10 consecutive business days, unless the closing is due to an act of God, a strike, a labor difficulty, or another cause over which the franchisor has no control;
(iii)
the franchisor makes a misrepresentation that materially and adversely affects the business relationship with the recreational vehicle franchisee;
(iv)
a material violation of this chapter is not cured within 30 days after the franchisee gives 30 days’ written notice of the violation to the recreational vehicle franchisor; or
(v)
the recreational vehicle franchisor:
(A)
becomes insolvent;
(B)
declares bankruptcy; or
(C)
makes an assignment for the benefit of creditors.
(3)
If the franchisee terminates, cancels, or does not renew the recreational vehicle franchise agreement or line-make for cause, the franchisor shall, at the franchisee’s election and within 45 days after termination, cancellation, or nonrenewal, repurchase:
(a)
(i)
all new, unaltered recreational vehicles, including demonstrators, that the franchisee acquired from the franchisor within 18 months before the date of the termination, cancellation, or nonrenewal; and
(ii)
for a repurchase price equal to 100% of the original net invoice cost, including transportation, reduced by:
(A)
any applicable rebates and discounts to the franchisee; and
(B)
the cost to repair any damage to a repurchased recreational vehicle, if the vehicle is damaged after delivery to the franchisee but before repurchase occurs;
(b)
(i)
all undamaged accessories and proprietary parts sold by the recreational vehicle franchisor to the franchisee within one year before termination, cancellation, or nonrenewal, if accompanied by the original invoice; and
(ii)
for a repurchase price equal to 100% of the original net invoice cost, plus an additional 5% of the original net invoice cost to compensate the franchisee for packing and shipping the returned accessories and parts to the franchisor; and
(c)
(i)
any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery that:
(A)
the franchisee purchased:
(I)
from the franchisor within five years before termination, cancellation, or nonrenewal; and
(II)
at the franchisor’s request or because of the franchisor’s requirement; and
(B)
are no longer usable in the normal course of the franchisee’s ongoing business, as the franchisee reasonably determines; and
(ii)
for a repurchase price equal to 100% of the original net cost that the franchisee paid, plus any applicable shipping charges and sales taxes.
(4)
A recreational vehicle franchisor shall pay the franchisee all money due under Subsection (3) within 30 days after the franchisor’s receipt of the repurchased items.
