Sec. 29. (a) This section applies when a manufacturer or distributor terminates, cancels, or fails to renew a franchise between the manufacturer or distributor and a dealer, unless the termination, cancellation, or failure to renew is due to any of the following:
(1) The dealer files for bankruptcy or enters into receivership.
(2) The dealer's license is revoked under IC 9-32-11 or IC 9-32-16.
(3) The dealer has been convicted of or pled guilty to a felony.
(4) The dealer commits fraud.
(5) The dealer has abandoned business operations or otherwise failed to conduct sales and service operations during regular business hours for at least seven (7) consecutive days, unless the abandonment or closure is due to an act of God or another act over which the franchise has no control.
(b) Except as provided in subsection (c), upon termination, cancellation, or nonrenewal, a manufacturer or distributor shall pay to a dealer the following amounts:
(1) If the dealer is leasing the dealership facilities from a person other than the manufacturer or distributor, the lesser of:
(A) the total lease payments remaining unpaid on the date of termination, cancellation, or nonrenewal; or
(B) the total annual lease payments for one (1) year;
subject to damages mitigated by the dealer under the terms of the lease.
(2) If the dealer owns the dealership facilities, an amount equal to the reasonable rental value of the facilities for the one (1) year period beginning on the date of termination, cancellation, or nonrenewal, subject to damages mitigated by the dealer.
(c) A manufacturer or distributor may discharge the manufacturer's or distributor's obligations under a lease with a dealer by negotiating with the dealer a lease termination payment, a sublease, or a new lease.
(d) The manufacturer or distributor is entitled to possession of the dealership facilities during the time period for which the manufacturer or distributor makes any lease payments.
(e) It is an unfair practice for a manufacturer or a distributor to violate this section.
As added by P.L.152-2013, SEC.5.
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