South Dakota Codified Laws
Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment
Section 37-5-14 - Certain circumstances not cause for termination of dealership contract or entering into new dealership contract.

37-5-14. Certain circumstances not cause for termination of dealership contract or entering into new dealership contract.
The following circumstances are not cause for the termination or discontinuance of a dealership contract, nor for entering into a dealership contract for the establishment of an additional dealership in a community for the same line-make:
(1)The change of executive management or ownership of the dealer, unless the manufacturer can show that the change would be detrimental to the representation or reputation of the manufacturer's product;
(2)Refusal by the dealer to purchase or accept delivery of any machinery, parts, accessories, or any other commodity or service not ordered by the dealer unless such machinery, parts, accessories, or other commodity or service is necessary for the operation of machinery commonly sold in the dealer's area of responsibility;
(3)The sole fact that the manufacturer desires further penetration of the market;
(4)The fact that the dealer owns, has an investment in, participates in the management of, or holds a dealership contract for the sale of another line-make of machinery, or that the dealer has established another line-make of machinery in the same dealership facilities as those of the manufacturer, if the dealer maintains a reasonable line of credit for each line-make of machinery; or
(5)Refusal by the dealer to participate in any national advertising campaign or contest or purchase any promotional materials, display devices, or display decoration or materials which are at the expense of the dealer.

Source: SL 1999, ch 200, §2.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 37 - Trade Regulation

Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment

Section 37-5-1 - Coercion of dealer to force unwanted purchases as misdemeanor.

Section 37-5-2 - Coercion of dealer to control sales or force expenditures as misdemeanor.

Section 37-5-3 - Unfair cancellation of dealer franchise as misdemeanor.

Section 37-5-4 - Civil liability for damages from violation.

Section 37-5-5 - Cancellation of contract--Recovery of costs and charges by dealer--Transfer of title and possession.

Section 37-5-5.5 - Reimbursement for computer and signage costs incurred under requirements of wholesaler, manufacturer or distributor.

Section 37-5-6 - Contracts subject to dealer's right to recovery of costs and charges on cancellation.

Section 37-5-7 - Determination of prices to be paid to dealer on cancellation of contract.

Section 37-5-7.1 - Time for payment of costs and charges to dealer--Final statement of account.

Section 37-5-8 - Failure to pay dealer on cancellation of contract--Action by dealer--Applicability of section.

Section 37-5-9 - Death of dealer--Repurchase of merchandise, parts, and attachments--Exercise of rights by heirs.

Section 37-5-10 - Current unused complete farm implements, machinery or attachments defined.

Section 37-5-11 - Restriction of jurisdiction or venue to out-of-state forum or requiring application of foreign law prohibited.

Section 37-5-12 - Waiver of law void.

Section 37-5-12.1 - Dealer defined.

Section 37-5-12.2 - Merchandise defined.

Section 37-5-12.3 - Contract defined.

Section 37-5-12.4 - Merchandise manufacturer or supplier compensation of dealer for diagnostic and warranty work.

Section 37-5-13 - Definition of terms used in §§ 37-5-13 to 37-5-15.

Section 37-5-14 - Certain circumstances not cause for termination of dealership contract or entering into new dealership contract.

Section 37-5-15 - Certain terms or conditions in dealership contract or lease prohibited--Not applicable to lease or sale of real property.

Section 37-5-16 - Definitions.

Section 37-5-17 - Manufacturer of outdoor power equipment required to compensate retailer for warranty work--Amount of compensation.

Section 37-5-18 - Inapplicability of §§ 37-5-16 and 37-5-17 where only method of sales is through retailer with exclusive trade territory.

Section 37-5-19 - Civil action for violation of chapter.