Sec. 28. (a) This section applies when a dealer requests payment from a manufacturer or distributor following:
(1) the termination, cancellation, or nonrenewal by the manufacturer or distributor of a franchise between the dealer and the manufacturer or distributor; or
(2) the discontinuance of a line make by the manufacturer or distributor.
(b) Not more than ninety (90) days after a manufacturer or distributor receives a request for payment from a dealer described in subsection (a), the manufacturer or distributor shall pay to the dealer the following amounts for items that are in the dealer's inventory or possession at the time of termination, cancellation, nonrenewal, or discontinuance, that the dealer delivers to the manufacturer or distributor, and as to which the dealer conveys clear title to the manufacturer or distributor under subsection (c):
(1) For:
(A) current model year motor vehicles; or
(B) immediately preceding model year motor vehicles with less than three hundred (300) miles;
acquired from the manufacturer or distributor in the usual course of business, the cost at acquisition less any discounts or allowances received from the manufacturer or distributor.
(2) For all new, unused, and undamaged parts in original packaging that were purchased from the manufacturer or distributor:
(A) the cost listed in the manufacturer's or distributor's parts catalog in effect at the time of termination, cancellation, nonrenewal, or discontinuance; minus
(B) any allowances authorized by the manufacturer or distributor.
(3) For required special tools, equipment, or computer equipment that was used for reporting financial data to the manufacturer or distributor, used solely for the franchise being terminated, and purchased by the dealer during the two (2) years immediately preceding the termination, cancellation, nonrenewal, or discontinuance, fair market value.
(4) For signs that bear a trademark or trade name, that the dealer was required by the manufacturer or distributor to purchase, and that the dealer purchased within three (3) years of the termination, cancellation, nonrenewal, or discontinuance, fair market value.
For purposes of this subsection, fair market value is determined on the date of termination, cancellation, nonrenewal, or discontinuance.
(c) Title to items described in subsection (b) transfers from a dealer to a manufacturer or distributor on the date of termination, cancellation, nonrenewal, or discontinuance. The dealer has an enforceable security interest in the transferred items.
(d) It is an unfair practice for a manufacturer or distributor to violate this section.
As added by P.L.152-2013, SEC.4.
Structure Indiana Code
9-32-13-1. Requiring Purchase of Equipment, Part, or Accessory as a Condition of Sale
9-32-13-2. Willful Failure of Dealer to Perform Vehicle Delivery and Preparation Obligations
9-32-13-3. Willful Failure of Dealer to Perform Warranty Obligations
9-32-13-4. Sale of Motor Vehicle Having Trade Name or Mark for Which Dealer Lacks Franchise
9-32-13-5. Willful Failure of Dealer to Perform Fiduciary Duty to Collect and Remit Gross Retail Tax
9-32-13-7. Document Preparation Fees
9-32-13-8. Violation of Deceptive Franchise Practices Provisions
9-32-13-9. Manufacturer or Distributor Coercing Dealers to Order
9-32-13-10. Manufacturer or Distributor Requiring Changes in Capital Structure or Financing
9-32-13-11. Manufacturer or Distributor Requiring Changes in Dealer Management
9-32-13-12. Restraint by Manufacturer or Distributor of Sale or Transfer of Interest by Dealer
9-32-13-13. Manufacturer or Distributor Preventing Dealer From Fair Competition
9-32-13-14. Employment by Manufacturer or Distributor of Person Who Is Not Certified
9-32-13-15.5. Compensation for Warranty Services
9-32-13-16. Contract for Uniform Warranty Reimbursement Policy
9-32-13-20. False, Deceptive, or Misleading Advertising; Deceptive Acts or Practices
9-32-13-21. Unfair Practices of Employees, Agents, Officers, Partners, or Representatives
9-32-13-22. Franchise Termination; Right of First Refusal
9-32-13-23. Unfair Practices by Manufacturer, Distributor, Officer, or Agent
9-32-13-24. Relocation of New Motor Vehicle Dealers
9-32-13-25. Acting, Offering to Act As, or Professing to Be a Broker of Motor Vehicles
9-32-13-26. Fraud or Deceit, Untrue Statements of Material Fact or Omission