(A) Every manufacturer shall specify to the dealer the delivery and preparation obligations of its motor vehicle dealers prior to delivery of new motor vehicles to retail buyers. A copy of the delivery and preparation obligations of its motor vehicle dealers and a schedule or statement of the compensation to be paid or credited to its motor vehicle dealers for the work and services they shall be required to perform in connection with such delivery and preparation obligations shall be filed with the Department of Motor Vehicles by every motor vehicle manufacturer and shall constitute any such dealer's only responsibility for product liability as between such dealer and such manufacturer. The compensation as set forth on such schedule or statement shall be reasonable and paid or credited as set out in Section 56-15-60.
(B) Every manufacturer and franchisor shall indemnify and hold harmless its franchised dealers licensed in this State against any judgment for damages or settlements agreed to by the manufacturer or franchisor including, but not limited to, court costs and reasonable attorneys' fees of the motor vehicle dealer arising out of complaints, claims, or lawsuits including, but not limited to, strict liability, negligence, misrepresentation, express or implied warranty, or recision or revocation of acceptance of the sale of a motor vehicle to the extent that the judgment or settlement relates to the alleged defective negligent manufacture, assembly, or design of new motor vehicles, parts, or accessories or other functions by the manufacturer or franchisor, but excluding any judgment or settlement that is the result, in whole or in part, of the dealer's negligence or wrong doing.
HISTORY: 1962 Code Section 46-150.155; 1972 (57) 2419; 1993 Act No. 181, Section 1484; 2021 Act No. 31 (S.510), Section 7, eff August 4, 2021.
Editor's Note
2021 Act No. 31, Section 14, provides as follows:
"SECTION 14. This act takes effect ninety days after approval by the Governor and applies to all current and future franchises and other agreements in existence between any franchisee located in this State and a franchisor as of the effective date of this act."
Effect of Amendment
2021 Act No. 31, Section 7, inserted the (A) designator, and added (B).
Structure South Carolina Code of Laws
Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers
Section 56-15-10. Definitions.
Section 56-15-20. Persons subject to chapter and jurisdiction of courts; service of process.
Section 56-15-35. Consumer data.
Section 56-15-46. Notice of intent to establish or relocate competing dealership; injunction.
Section 56-15-60. Fulfillment of warranty agreements; dealers' claims for compensation.
Section 56-15-65. Requiring change of location or alteration of dealership.
Section 56-15-70. Certain unreasonable restrictions on dealers or franchisees unlawful.
Section 56-15-75. Requiring dealer to refrain from acquiring another line of new motor vehicles.
Section 56-15-80. Agreements to which chapter applies.
Section 56-15-85. Electronic sale of vehicles.
Section 56-15-96. Measurement of dealership performance; burden of proof.
Section 56-15-100. Discounts, refunds, and other inducements to dealers.
Section 56-15-110. Suits for damages.
Section 56-15-120. Limitation of actions.
Section 56-15-130. Contracts in violation of chapter void.
Section 56-15-310. License required; term of license; fee; scope of license; penalty for violation.
Section 56-15-315. Off-site displays of automobiles or trucks.
Section 56-15-330. Facilities required for issuance of dealer's license.
Section 56-15-350. Denial, suspension, or revocation of license; grounds; procedure.
Section 56-15-410. Required pre-licensing education courses.
Section 56-15-420. Promulgation of regulations.
Section 56-15-440. Applicability to dealers engaged primarily in motor vehicle salvage.
Section 56-15-450. Applicability to dealers primarily engaged in rental of motor vehicles.
Section 56-15-510. Definitions.
Section 56-15-530. Buying or selling motor vehicles in name of wholesale motor vehicle auction.
Section 56-15-550. Sales through auction of motor vehicles acquired incident to regular business.
Section 56-15-560. Application for license for wholesale motor vehicle auction; fee.
Section 56-15-570. Surety bond required.
Section 56-15-580. Change of information on application must be reported.
Section 56-15-590. Establishment and retention of records.
Section 56-15-600. Wholesale motor vehicle auction license plates.