South Dakota Codified Laws
Chapter 06B - Regulation Of Vehicle Dealers
Section 32-6B-81 - Manufacturer or franchisor may own or operate for limited period--Conditions.

32-6B-81. Manufacturer or franchisor may own or operate for limited period--Conditions.
A manufacturer or franchisor may own an interest in a franchised vehicle dealer, or otherwise control a dealership, for a period not to exceed twelve months from the date the manufacturer or franchisor acquires the dealership if:
(1)The person from whom the manufacturer or franchisor acquired the dealership was a franchised dealer; and
(2)The dealership is for sale by the manufacturer or franchisor at a reasonable price and on reasonable terms and conditions.

Source: SL 2000, ch 151, §3.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 32 - Motor Vehicles

Chapter 06B - Regulation Of Vehicle Dealers

Section 32-6B-1 - Definition of terms.

Section 32-6B-1.1 - Motor home defined.

Section 32-6B-1.2 - Recreational park trailer defined.

Section 32-6B-1.3 - Temporary special events lot defined.

Section 32-6B-1.4 - Temporary supplemental lot defined.

Section 32-6B-2 - Principal place of business defined.

Section 32-6B-3 - Sale on consignment--Contract required--Form.

Section 32-6B-3.1 - Sale on consignment prohibited for vehicle without statement of origin.

Section 32-6B-3.2 - Odometer reading required for consignment or auction--Violation a misdemeanor.

Section 32-6B-3.3 - Consignment or auction of vehicle with lien--Written consent and release by lien holder.

Section 32-6B-3.4 - Auction on consignment of older vehicle titled in another state.

Section 32-6B-3.5 - Auction on consignment of older motorcycle titled in another state.

Section 32-6B-3.6 - Sale of used motorcycles and off-road vehicles on consignment where dealer possesses state title or title from bordering state--Exception.

Section 32-6B-4 - License required--Violation as misdemeanor.

Section 32-6B-4.1 - Brokering prohibited--Violation as misdemeanor.

Section 32-6B-5 - Exemptions from licensing requirements.

Section 32-6B-5.2 - Permit for dealer licensed in another state to sell motorcycles at event.

Section 32-6B-5.3 - Permit for dealer licensed in another state to sell trailers at event.

Section 32-6B-5.4 - Permit for dealer licensed in another state to sell older vehicles and motorcycles on consignment at public auction.

Section 32-6B-5.5 - Permit for manufacturer to display trailers at event.

Section 32-6B-5.6 - Permit for manufacturer to display or demonstrate customized motor vehicle at event.

Section 32-6B-5.7 - Permit for sponsor to display customized motorcycles at event.

Section 32-6B-6 - Application required--Contents.

Section 32-6B-7 - Bond required--Amount--Term--Continuation certificate--Notification of payment or cancellation--Additional bond.

Section 32-6B-7.1 - Pooling of assets to satisfy bond requirements--Right, title, and interest in state--Termination--Notice of payment of claim--Replenishment of pool.

Section 32-6B-7.2 - Increase in dealer bond amount--Implementation.

Section 32-6B-8 - Dealer in new vehicles to maintain repair shop.

Section 32-6B-9 - Dealer in new vehicles to give bond to cover warranty obligations--Amount--Exemption.

Section 32-6B-10 - Manufacturer's contract or franchise prerequisite to license for dealer in new vehicles.

Section 32-6B-11 - Verification of application by department--Refusal to issue license.

Section 32-6B-12 - Classification of licenses--Issuance of license certificate.

Section 32-6B-12.1 - Low-speed vehicle retail sales.

Section 32-6B-13 - Fees for dealer's licenses--Disposition of fees.

Section 32-6B-14 - Dealer license--Annual review--Renewal notice--Suspension or revocation--Promulgation of Rules.

Section 32-6B-15 - Renewal application--Fees.

Section 32-6B-16 - Modification of license certificate--Display of license.

Section 32-6B-17 - Separate licenses--Requirement.

Section 32-6B-18 - Permission to change principal place of business within county.

Section 32-6B-19 - Supplemental licenses for supplemental lots within county--Exemptions.

Section 32-6B-20 - Books, records, and files to be kept--Inspection.

Section 32-6B-20.1 - Certificate kept at another dealership or at lending institution--Requirements--Notice.

Section 32-6B-20.2 - Offer to sell, sale, or exchange of vehicle without certificate of title allowed under specified circumstances.

Section 32-6B-20.3 - Agreement that dealer will satisfy lien by paying lienholder--Trade of vehicle or consignment agreement--Theft.

Section 32-6B-20.4 - Time period to satisfy lien after receipt of funds--Offering vehicle for sale prior to tender to lienholder.

Section 32-6B-21 - Issuance of dealer plates--Numbering--Fees--Return of plates--Misdemeanor.

Section 32-6B-21.1 - Mailing fees.

Section 32-6B-22 - Use of dealer plates--Transfer of plates--Violation as misdemeanor.

Section 32-6B-22.1 - Commercial motor vehicles licensed to dealers--Dealer 88 license plates--Return of plates--Violation as misdemeanor.

Section 32-6B-22.2 - Use of dealer 88 license plates_Transfer of plates.

Section 32-6B-23 - Issuance of motorcycle dealer and trailer dealer plates--Numbering--Display and use--Fees.

Section 32-6B-24 - Repossession of dealer plates.

Section 32-6B-25 - Use of vehicles bearing dealer's demonstration or in-transit permits--Time limitation--Issuance of permits for unauthorized purposes prohibited--Violation as misdemeanor.

Section 32-6B-26 - Temporary license permit--Provision by dealer.

Section 32-6B-27 - Location of temporary license permit.

Section 32-6B-28 - Time for application for registration by owner--Inspection of documents by law enforcement officer.

Section 32-6B-29 - Restrictions on dealer use of temporary license permits--Renewal prohibited--Violation as misdemeanor.

Section 32-6B-30 - Design of dealers' demonstration, in-transit and temporary license permits--Information required--Source of permits.

Section 32-6B-34 - Dealer's car auction agency--Defined--Applicability of chapter--Additional provisions.

Section 32-6B-35 - Dealer's car auction agency--Bond requirements--Dealer's right of action--Liability of surety.

Section 32-6B-35.1 - Dealer's car auction agency--Announcement at sale when title denotes any brand or damage--Return of vehicle.

Section 32-6B-36 - Dealer's car auction agency--Vehicles acceptable for sale--Permitted purchasers--Unauthorized sale a misdemeanor.

Section 32-6B-36.1 - Dealer's car auction agency--Government-owned vehicles.

Section 32-6B-36.3 - Issuance of auction agency plates--Numbering--Fees--Return of plates--Misdemeanor.

Section 32-6B-36.4 - Use of agency plates--Transfer of plates--Violation as misdemeanor.

Section 32-6B-37 - Dealer's car auction agency--Records required.

Section 32-6B-37.1 - Public auction to keep records--Inspection by dealer appointed inspectors.

Section 32-6B-38 - Appointment of inspectors--Entry authorized--Complaints.

Section 32-6B-39 - Investigation of dealers--Authorized.

Section 32-6B-41 - Grounds for denial of license or application of provisions of §§ 32-6B-41.1 to 32-6B-41.6, inclusive.

Section 32-6B-41.1 - Cease and desist order for specified violations--Period of effectiveness.

Section 32-6B-41.2 - Cease and desist order--Request for hearing--Procedure.

Section 32-6B-41.3 - Finality of cease and desist order.

Section 32-6B-41.4 - Order to pay fine or suspend or revoke license upon failure to comply with cease and desist order--Deposit of monetary penalties.

Section 32-6B-41.5 - Contest of order--Procedure.

Section 32-6B-41.6 - Finality of order.

Section 32-6B-41.7 - Cease and desist order--Failure to comply--Penalty.

Section 32-6B-42 - Notification of surety of license denial, suspension or revocation.

Section 32-6B-45 - Good cause required for franchisor termination, cancellation, nonrenewal, or change in competitive circumstances.

Section 32-6B-47 - When franchisor may establish additional vehicle dealership for same line-make--Hearing.

Section 32-6B-48 - Factors in determining cause for establishing additional franchise for same line-make.

Section 32-6B-49 - Factors which are not cause for termination or noncontinuance of franchise or for establishing additional franchise for same line-make.

Section 32-6B-49.1 - Terms or conditions not allowed in franchise agreement.

Section 32-6B-50 - Notice of intention to enter into additional franchise for same line-make.

Section 32-6B-51 - Copies of notice to be sent to franchisees and other interested persons.

Section 32-6B-52 - Objection to approval of notice--Time for filing written objection--Approval absent timely objection.

Section 32-6B-53 - Hearing on objection--Time and place--Notice--Continuance.

Section 32-6B-54 - Burden of proof at hearing.

Section 32-6B-55 - Hearing upon change of circumstances.

Section 32-6B-56 - Dealer's license not to be issued to franchisee absent compliance by franchisor.

Section 32-6B-56.1 - Trailer franchisees not subject to certain provisions.

Section 32-6B-57 - Sale by franchisor to franchisee at lower price than that charged to other franchisee prohibited--Exceptions--Violation as misdemeanor--Damages.

Section 32-6B-58 - Duty of franchisor or manufacturer to fulfill warranty agreements and compensate dealers for labor and parts--Disposition of dealer claims.

Section 32-6B-58.1 - Franchisor or manufacturer--Duties--Separate warranty for an engine, transmission, or rear axle--Disposition of dealer and customer claims.

Section 32-6B-59 - Right of department to apply for injunction against violation of chapter.

Section 32-6B-60 - Adoption of rules.

Section 32-6B-61 - Schedule of compensation for warranty work.

Section 32-6B-62 - Trailer dealers exempt from certain liability insurance requirements.

Section 32-6B-63 - Regulation of advertising.

Section 32-6B-64 - Advertising defined.

Section 32-6B-66 - In-transit permits for certain trailer manufacturer's trailers.

Section 32-6B-67 - Promulgation of rules for in-transit permits for trailer manufacturer's trailers.

Section 32-6B-69 - Franchise agreement--Change of terms--Dealer rights.

Section 32-6B-69.1 - Audit by franchisor--Limitation--Exception.

Section 32-6B-70 - License required for certain activities--Violation as misdemeanor--Additional violations as felony.

Section 32-6B-71 - Vehicle dealership--Death of owner--Succession of interest.

Section 32-6B-72 - Succession--Refusal to honor.

Section 32-6B-73 - Notification of decision to transfer, assign, or sell franchise agreement or dealership--Notification as application for approval.

Section 32-6B-74 - Contents of notice.

Section 32-6B-75 - Manufacturer or franchisor to determine prospective transferee's qualification--Notice of decision--Statement of reasons for rejection.

Section 32-6B-76 - Approval may not be unreasonably withheld.

Section 32-6B-78 - Transferee's qualification as sole issue in objection.

Section 32-6B-79 - Manufacturer defined.

Section 32-6B-80 - Manufacturer or franchisor may not own or operate dealership--Exceptions.

Section 32-6B-81 - Manufacturer or franchisor may own or operate for limited period--Conditions.

Section 32-6B-82 - Exceptions for the purpose of broadening diversity of dealer body.

Section 32-6B-83 - Extension of time period in 32-6B-81--Application--Limit.

Section 32-6B-85 - Civil action for injunction and damages.

Section 32-6B-86 - Applicability of SL 2010, ch 156 amendments.

Section 32-6B-87 - Dealers permitted to lease space in common area of shopping mall for displaying new vehicles--Restrictions--Exception.

Section 32-6B-88 - Off-road vehicle dealers exempt from certain special event permit requirements, fees, and taxes.

Section 32-6B-89 - Licensed dealer permitted to take vehicle to adjoining county for demonstration.