(A) It is unlawful for any manufacturer, distributor, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to change the location of the motor vehicle dealership or to make any substantial alterations to the dealer's premises or facilities unless:
(1) the manufacturer demonstrates that such change or alteration is reasonable in light of the current market and economic conditions; and
(2) the motor vehicle dealer has been provided written assurance from the manufacturer or distributor of a sufficient supply of motor vehicles to justify such change or alteration.
(B)(1) It is unlawful for any manufacturer, distributor, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to change the location of the dealership, or to make any substantial alterations to its dealership premises or facilities if:
(a) the dealer changed the location of the dealership or made substantial alterations to the same signs, franchisor image elements, or other improvements to its premises or facilities within the preceding ten years; and
(b) the change in location or alteration was made pursuing compliance with a facility initiative or program that was sponsored or supported by the manufacturer, factory branch, distributor, or distributor branch, with the approval of the manufacturer, factory branch, distributor, or distributor branch.
(2) This subsection does not apply if the required facility alteration or improvement is necessary to comply with health and safety requirements or are necessary in order to sell and service a motor vehicle offered for sale by the dealer.
HISTORY: 2009 Act No. 52, Section 1, eff upon approval (became law without the Governor's signature on June 3, 2009); 2021 Act No. 31 (S.510), Section 9, 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 9, 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.