(1)  A franchisee has a private right of action for actual damages and reasonable attorney fees against a franchisor for a violation of this chapter that results in damage to the franchisee.

Terms Used In Utah Code 13-14-308

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • 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
    (v) a franchise agreement authorizes a dealer to sell. See Utah Code 13-14-102
    (2) 

    (a)  As used in this Subsection (2):

    (i)  “New franchisor” has the same meaning as defined in Section 13-14-302.5.

    (ii)  “Reinstated franchise” has the same meaning as defined in Section 13-14-302.5.

    (iii)  “Reinstated franchisee” has the same meaning as defined in Section 13-14-302.5.

    (b)  A reinstated franchisee has a private right of action for actual damages and reasonable attorney fees against a new franchisor if:

    (i)  the new franchisor:

    (A)  establishes a new franchisee of the same line-make as a line-make of the reinstated franchisee within the relevant market area of the reinstated franchisee; or

    (B)  adds a line-make to another franchisor’s existing franchisee within the relevant market area of the reinstated franchisee that is the same line-make as a line-make of the reinstated franchisee; and

    (ii)  the franchisor’s action under Subsection (2)(b)(i) causes a substantial diminution in value of the reinstated franchisee’s reinstated franchise.

    (c)  A new franchisor may not be held liable under Subsection (2)(b) based on a franchisee’s purchase of another existing franchise, both of which are within the relevant market area of a reinstated franchisee, for the purpose of combining the purchased franchise with the franchise of the purchasing franchisee.

    Amended by Chapter 41, 2010 General Session