2021 Oregon Revised Statutes
Chapter 650 - Franchise Transactions
Section 650.120 - Definitions for ORS 650.120 to 650.170.


(1) "Dealer" means any person who has been issued a vehicle dealer certificate under ORS 822.020 and pursuant to a franchise from a manufacturer, distributor or importer engages in buying, selling, leasing or exchanging new motor vehicles.
(2) "Dealership" means the location from which a dealer buys, sells, leases, trades, stores, takes on consignment or in any other manner deals in new motor vehicles.
(3) "Distributor" means a person who sells or distributes motor vehicles other than motor homes to motor vehicle dealers.
(4) "Fleet owner" means a person in this state who at one time buys or leases for use in a business:
(a) 15 or more motor vehicles with a gross vehicle weight rating of less than 8,500 pounds; or
(b) 50 or more vehicles with a gross vehicle weight rating of 8,500 pounds or more.
(5) "Franchise" means a contract or agreement under which:
(a) The franchisee is granted the right to sell, lease and exchange new motor vehicles manufactured, distributed or imported by the franchisor;
(b) The franchisee’s business is an independent business operating as a component of a distribution or marketing system prescribed in substantial part by the franchisor;
(c) The franchisee’s business is substantially associated with the trademark, trade name, commercial symbol or advertisements designating the franchisor or the products distributed by the franchisor;
(d) The franchisee’s business is substantially reliant on the franchisor for a continued supply of motor vehicles, parts and accessories;
(e) The franchisee is granted the right to perform warranty repairs authorized by the franchisor; and
(f) The franchisee is granted the right to sell, install and exchange parts, equipment and accessories manufactured, distributed or imported by the franchisor for use in or on motor vehicles.
(6) "Franchisee" means a dealer to whom a franchise is granted.
(7) "Franchisor" means a manufacturer, distributor or importer who grants a franchise to a dealer.
(8) "Importer" means a person who transports or arranges for the transportation of any foreign manufactured new motor vehicle into the United States for sale in this state.
(9) "Manufacturer" means a person who manufactures or assembles motor vehicles or who manufactures or installs on previously assembled truck chassis special bodies or equipment, other than motor homes, that when installed forms an integral part of the motor vehicle and constitutes a major manufacturing alteration and which completed unit is owned by the manufacturer.
(10) "Manufacturer’s suggested retail price" means the retail price of the new motor vehicle suggested by the manufacturer, including the retail delivered price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the new motor vehicle at the time of delivery to the dealer that is not included within the retail price suggested by the manufacturer for the new motor vehicle without the accessory or optional equipment.
(11) "Motor home" means a motor vehicle that is designed to provide temporary living quarters and is built into an integral part of, or is permanently attached to, a self-propelled motor vehicle chassis or van. The vehicle must contain permanently installed independent life support systems and provide at least four of the following facilities:
(a) Cooking;
(b) Refrigeration or ice box;
(c) Self-contained toilet;
(d) Heating or air conditioning;
(e) A potable water supply system including a faucet and sink; or
(f) A separate 110-120 volt electrical power supply or liquefied petroleum gas supply.
(12) "Motor vehicle" means:
(a) A self-propelled device, other than a motor home, used:
(A) For transportation of persons or property upon a public highway; or
(B) In construction; or
(b) A trailer with a gross vehicle weight rating of 20,000 pounds or more that is used for commercial transportation on a public highway.
(13) "Predecessor in interest" means a manufacturer, distributor or importer that transferred to another manufacturer, distributor or importer, whether through sale or other means, the right to manufacture, distribute or import motor vehicles using the manufacturer’s, distributor’s or importer’s trademark, service mark, trade name, logotype or other commercial symbol.
(14) "Qualified vendor" means a person with a contract or agreement to sell goods or services to a manufacturer, distributor or importer.
(15) "Relevant market area" means:
(a) For a dealer primarily of motor vehicles with a gross vehicle weight rating of less than 8,500 pounds, a circular area around an existing dealership of:
(A) Not less than a 10-mile radius from the dealership site;
(B) Not less than a 15-mile radius from the dealership site if the population is less than 250,000 within a 10-mile radius from the existing dealership and 150,000 or more within a 15-mile radius from the existing dealership;
(C) Not less than a 20-mile radius from the dealership site if the population is less than 150,000 within a 15-mile radius from the existing dealership; or
(D) The area of sales and service responsibility determined under the franchise agreement if the area is larger than the areas provided for in this paragraph.
(b) For a dealer primarily of motor vehicles with a gross vehicle weight rating of 8,500 pounds or more, a circular area around an existing dealership of:
(A) Not less than a 25-mile radius from the dealership site; or
(B) The area of sales and service responsibility determined under the franchise agreement if the area is larger than the area provided for in subparagraph (A) of this paragraph.
(16) "Replacement dealer" means any person who, at a dealership where the former dealer was franchised by the same manufacturer, distributor or importer, or the manufacturer’s, distributor’s or importer’s predecessor in interest, has been issued a vehicle dealer certificate under ORS 822.020 and pursuant to a franchise from a manufacturer, distributor or importer, or the manufacturer’s, distributor’s or importer’s predecessor in interest, engages in buying, selling, leasing or exchanging new motor vehicles.
(17) "Site-control agreement" means an agreement between a franchisor and franchisee pursuant to which the franchisor would:
(a) Control the use and development of a dealership site other than as permitted in ORS 650.120 to 650.170;
(b) Require a franchisee to establish or maintain an exclusive dealership under a franchise agreement with the franchisor by not investing in, managing or sharing another dealership with a different franchisor; or
(c) Restrict the ability of a franchisee, or if the franchisee leases the dealership, the ability of the franchisee’s lessor, to transfer, assign, sell, lease, develop or change the use of the dealership site.
(18) "Successor in interest" means a manufacturer, distributor or importer that acquires, whether through purchase, transfer or other means, the right to manufacture, distribute or import motor vehicles using the trademark, service mark, trade name, logotype or other commercial symbol of another manufacturer, distributor or importer. [1980 c.3 §1; 1993 c.216 §1; 1999 c.660 §1; 2001 c.216 §1; 2001 c.825 §1; 2003 c.411 §1; 2005 c.211 §1; 2009 c.627 §3; 2009 c.790 §11; 2011 c.177 §1]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 16 - Trade Practices, Labor and Employment

Chapter 650 - Franchise Transactions

Section 650.005 - Definitions for ORS 650.005 to 650.100.

Section 650.015 - When franchise sale or offer for sale is made in this state.

Section 650.020 - Liability of franchise seller; defenses; amount of recovery; attorney fees; joint and several liability; limitation on action; indemnification of corporation; right of contribution.

Section 650.055 - General duties and powers of director.

Section 650.057 - Orders issued under ORS 650.055.

Section 650.060 - Investigative powers of director; protection against unreasonable investigation; contempt.

Section 650.065 - Injunctive relief; attorney fees; appointment of receiver or conservator; conditions of awarding damages and injunctive relief.

Section 650.070 - Director as agent for service of process.

Section 650.075 - Manner of executing service of process; effect of initial service.

Section 650.095 - Civil penalties.

Section 650.120 - Definitions for ORS 650.120 to 650.170.

Section 650.123 - Use of protected dealer data; prohibitions; liabilities.

Section 650.130 - Prohibited conduct by manufacturer, distributor or importer.

Section 650.132 - Prohibition of coerced sales of extended service contracts, extended maintenance plans or guaranteed asset protection waivers.

Section 650.133 - Constructing, altering or remodeling dealer facility; prohibitions; exceptions; purchasing goods or services from specific vendor; intellectual property infringement.

Section 650.140 - Good cause required to terminate dealer franchise; protest of termination; notice; when reasons for termination required.

Section 650.145 - Compensation due dealer upon termination of franchise.

Section 650.150 - Enjoining establishment of certain franchises or relocation of existing dealership in same market area; complaint; determination of good cause; when offer of new franchise or relocated dealership required; notice to existing or form...

Section 650.153 - Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer.

Section 650.155 - Liability of manufacturer for damages to vehicles before delivery to carrier.

Section 650.158 - Predelivery preparation and warranty service; notice to dealers; schedule of compensation; determination; claims by dealers.

Section 650.161 - Compensation for repairs to vehicles subject to recall; claims for compensation; prohibited practices; exclusivity of remedy.

Section 650.162 - Transfer, assignment or sale of interest in dealership or franchise; notices; approval of franchisor; right of first refusal.

Section 650.165 - Prohibited franchise conditions.

Section 650.170 - Dealer’s remedy.

Section 650.200 - Definitions for ORS 650.200 to 650.250.

Section 650.205 - Prohibited conduct by franchisor.

Section 650.210 - Rights and prohibitions governing relationship between franchisor and franchisee.

Section 650.215 - Prohibited conduct in offer, sale or purchase of franchise.

Section 650.220 - Consent of franchisor to sale, assignment or transfer of franchise; conditions for trial franchise.

Section 650.225 - Death of franchisee; when franchisor required to enter into new franchise with designee of franchisee; notice; qualifications; possession of franchise premises.

Section 650.235 - Franchisor prohibited from requiring operation of service station in excess of 16 hours per day; exceptions.

Section 650.250 - Injunctive relief or damages; limitation on commencement of action; attorney fees.

Section 650.300 - Definitions for ORS 650.300 to 650.480.

Section 650.310 - Good cause; determination.

Section 650.320 - Dealership agreement.

Section 650.330 - Comparable terms and conditions; grantor sales to public.

Section 650.340 - Termination, cancellation or failure to renew; notice; grounds.

Section 650.350 - Dealer’s rights upon termination, cancellation or failure to renew.

Section 650.360 - Coercion prohibited.

Section 650.370 - Transfer by dealer.

Section 650.380 - Dealer’s successor.

Section 650.390 - Dealer compensation for warranty service; disapproval of warranty service claims; recall notice requirements.

Section 650.400 - Recalls.

Section 650.410 - Dealer’s warranty obligations.

Section 650.420 - Required disclosures.

Section 650.430 - Damaged or defective vehicles.

Section 650.440 - Grantor’s ownership, operation or control of dealership.

Section 650.450 - Indemnification; grantor and dealer.

Section 650.460 - Indemnification; warrantor and dealer.

Section 650.470 - Remedies; grantor and dealer; attorney fees.

Section 650.480 - Remedies; warrantor and dealer; attorney fees.