Sec. 19.
(1) Notwithstanding the terms, provisions, or conditions of any dealer agreement, a manufacturer or distributor shall indemnify and hold harmless its new motor vehicle dealers against any judgment for damages or settlement agreed to in writing by the manufacturer, including, but not limited to, court costs and reasonable attorney's fees of the new motor vehicle dealer arising solely out of the complaints, claims, or actions from defects that relate to the manufacture, assembly, or design of vehicles, parts, or accessories, or other functions by the manufacturer or distributor, that are beyond the control of the dealer, including, without limitation, the selection by the manufacturer or distributor of parts or components for the vehicle, or any damages to merchandise occurring in transit to the dealer if the carrier is designated by the manufacturer or distributor. If a complaint, claim, or action contains independent allegations against the new motor vehicle dealer, the manufacturer shall pay only that portion of the costs, fees, and judgment or settlement that is directly related to the manufacture, assembly, or design of the vehicle, parts, or accessories or other functions of the manufacturer that are beyond the control of the dealer.
(2) A manufacturer must respond to a request for indemnification under this section within 30 days after the date the new motor vehicle dealer submits all documents necessary to support its request to the manufacturer.
(3) A dealer does not have a right to indemnification or attorney fees under subsection (1) unless the dealer has given reasonable notice in writing of the complaint, claim, or action to the manufacturer or distributor.
History: 1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 1983, Act 188, Imd. Eff. Nov. 1, 1983 ;-- 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.