2021 Oregon Revised Statutes
Chapter 650 - Franchise Transactions
Section 650.430 - Damaged or defective vehicles.


(a) Notify the grantor in writing of the damage or defect; and
(b)(A) Ask the grantor to permit the dealer to repair the damage or correct the defect at the expense of the grantor; or
(B) Reject the vehicle.
(2) A dealer may reject a vehicle if, within 10 days of receiving the dealer’s notice, the grantor does not permit a dealer to repair the damage or correct the defect at the grantor’s expense.
(3) If a dealer rejects a vehicle, the grantor must repurchase the vehicle within 10 business days. The repurchase price shall include the costs of delivery and financing necessary to keep the vehicle in stock.
(4) Rejection of a vehicle releases the dealer from any obligation to the grantor to pay for the vehicle.
(5) A dealership agreement may extend the term by which a dealer must notify the grantor of a damaged or defective vehicle. [2003 c.377 §14]

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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.