Sec. 8.
Notwithstanding any agreement, the following alone shall not constitute good cause for the termination, cancellation, nonrenewal, or discontinuance of a dealer agreement under section 7(1)(c):
(a) A change in ownership of the new motor vehicle dealer's dealership. This subdivision does not authorize any change in ownership that would have the effect of a sale or an assignment of the dealer agreement or a change in the principal management of the dealership without the manufacturer's or distributor's prior written consent.
(b) The refusal of the new motor vehicle dealer to purchase or accept delivery of any new motor vehicle parts, accessories, or any other commodity or services not ordered by the new motor vehicle dealer.
(c) The fact that the new motor vehicle dealer owns, has an investment in, participates in the management of, or holds a dealer agreement for the sale of another make or line of new motor vehicles, or that the new motor vehicle dealer has established another make or line of new motor vehicles in the same dealership facilities as those of the manufacturer or distributor, provided that the new motor vehicle dealer maintains a reasonable line of credit for each make or line of new motor vehicles, and that the new motor vehicle dealer remains in substantial compliance with the terms and conditions of the dealer agreement and with the reasonable facilities' requirements of the manufacturer or distributor.
(d) The fact that the new motor vehicle dealer sells or transfers ownership of the dealership or sells or transfers capital stock in the dealership to the new motor vehicle dealer's spouse, son, or daughter. However, a sale or transfer described in this subdivision does not have the effect of a sale or an assignment of the dealer agreement or a change in the principal management of the dealership without the manufacturer's or distributor's prior written consent.
(e) For purposes of this section, the failure of the new motor vehicle dealer to achieve any performance standard or criteria that are unreasonable, inequitable, or discriminatory.
History: 1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 2018, Act 668, Eff. Mar. 28, 2019
Structure Michigan Compiled Laws
Chapter 445 - Trade and Commerce
Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583)
Section 445.1561 - Short Title; Meanings of Words and Phrases.
Section 445.1562 - Definitions; C, D.
Section 445.1563 - Definitions; D to F.
Section 445.1564 - Definitions; G to M.
Section 445.1565 - Definitions; N to P.
Section 445.1566 - Definitions; R to U.
Section 445.1569 - Burden of Proof.
Section 445.1571 - Compensation of Dealer Generally.
Section 445.1572 - Payment of Compensation; Time; Determination of Amount; Interest; Definitions.
Section 445.1573 - Requiring Dealer to Perform Certain Duties Prohibited; Definitions.
Section 445.1574 - Prohibited Conduct by Manufacturer.
Section 445.1574b - Right of First Refusal; Conditions; Liability; Definitions.
Section 445.1577a - Reasonable Compensation for Parts Reimbursement and Labor Rates; Factors.
Section 445.1580 - Action for Damages or Declaratory Judgment; Liability.
Section 445.1581 - Injunctive Relief.
Section 445.1582 - Act Inapplicable to Dealer Outside Michigan.
Section 445.1582a - Existing Agreements and Agreements Entered Into or Renewed After Effective Date.