Except as provided in Subsection (2), a franchisor may not terminate or refuse to continue a franchise agreement unless:
Terms Used In Utah Code 13-35-301
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 Powersport Vehicle Franchise Advisory Board created in Section 13-35-103. See Utah Code 13-35-102
Executive director: means the executive director of the Department of Commerce. See Utah Code 13-35-102
franchise agreement: means a written agreement, for a definite or indefinite period, in which:
(a)
a person grants to another person a license to use a trade name, trademark, service mark, or related characteristic; and
(b)
a community of interest exists in the marketing of new powersport vehicles, new powersport vehicle parts, and services related to the sale or lease of new powersport vehicles at wholesale or retail. See Utah Code 13-35-102
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 powersport vehicles manufactured, produced, represented, or distributed by the franchisor. See Utah Code 13-35-102
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 powersport vehicles manufactured, produced, represented, or distributed by the franchisor, and includes:
(i)
the manufacturer or distributor of the new powersport vehicles;
(ii)
an intermediate distributor;
(iii)
an agent, officer, or field or area representative of the franchisor; and
(iv)
a person who is affiliated with a manufacturer or a representative or who directly or indirectly through an intermediary is controlled by, or is under common control with the manufacturer. See Utah Code 13-35-102
Line-make: means the powersport vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor, or manufacturer of the powersport vehicle. See Utah Code 13-35-102
New powersport vehicle dealer: means a person who is engaged in the business of buying, selling, offering for sale, or exchanging new powersport vehicles either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise who has established a place of business for the sale, lease, trade, or display of powersport vehicles. See Utah Code 13-35-102
Powersport vehicle: means :
(i)
an all-terrain type I, type II, or type III vehicle "ATV" defined in Section 41-22-2;
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 13-35-105.
(2)
A franchisor may terminate a franchise, without complying with Subsection (1):
(a)
if for a particular line-make the franchisor or manufacturer discontinues that line-make;
(b)
if the franchisee’s registration as a new powersport vehicle dealer is revoked under Section 13-35-105; or
(c)
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 13-35-304.
(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
