§1270.29. Requirements upon termination; penalty; indemnity; recreational vehicles
A.(1) In the event the licensee ceases to engage in the business of being a
recreational vehicle dealer, or ceases to sell a particular recreational vehicle, and after notice
to the manufacturer, converter, distributor, or representative by certified mail or commercial
delivery service with verification of receipt, within thirty days of the receipt of the notice by
the manufacturer, converter, distributor, or representative, the manufacturer, converter,
distributor, or representative shall repurchase:
(a) All new recreational vehicles of the current and last prior model year delivered
to the licensee and parts limited to those listed in the manufacturer's price book. The
recreational vehicles and parts shall be repurchased at the cost to the licensee which shall
include without limitation freight and advertising costs, less all allowances paid to the
recreational vehicle dealer.
(b) At fair market value, each undamaged sign owned by the recreational vehicle
dealer which bears a trademark or trade name used or claimed by the manufacturer,
distributor, or representative if the sign was purchased from or purchased at the request of
the manufacturer, distributor, or representative. Fair market value shall be no less than cost
of acquisition of the sign by the recreational vehicle dealer.
(c) At fair market value, all special tools and service equipment owned by the
recreational vehicle dealer, which were recommended in writing and designated as special
tools and equipment and purchased from or purchased at the request of the manufacturer,
converter, distributor, or representative, if the tools and equipment are in usable and good
condition except for reasonable wear and tear. Fair market value shall be no less than the
cost of acquisition of special tools and automotive service equipment by the recreational
(2) The manufacturer, converter, distributor, or representative shall pay to the
recreational vehicle dealer the costs of transporting, handling, packing, and loading of
recreational vehicles, or parts, signs, tools, and equipment subject to repurchase.
(3) The manufacturer or converter shall make the required repurchase after the
recreational vehicle dealer terminates his franchise and within sixty days of the submission
to it, by certified mail, return receipt requested, or commercial delivery service with
verification of receipt, of a final inventory of recreational vehicles and parts on hand.
B. Failure to make the repurchase without just cause shall subject the manufacturer
or converter to a penalty of one and one-half percent per month, or fraction thereof, of the
inventory value or returnable recreational vehicles, and parts, signs, special tools, and service
equipment, payable to the dealer, as long as the repurchase is not made.
C.(1) Upon the involuntary termination, nonrenewal, or cancellation of any franchise
by the manufacturer or converter, except for termination, nonrenewal, or cancellation
resulting from a felony conviction, notwithstanding the terms of any franchise, whether
entered into before or after the enactment of this Chapter or any of its provisions, the new
recreational vehicle dealer shall be allowed fair and reasonable compensation by the
manufacturer or converter as agreed by the parties, or lacking agreement, as determined by
the commission, for the dealership facilities if the facilities were required to be purchased
or constructed as a precondition to obtaining the franchise or to its renewal; provided that if
such facilities were leased and the lease was required as a precondition to obtaining the
franchise or to its renewal, then the manufacturer shall be liable for one year's payment of the
rent or the remainder of the term of the lease, whichever is less.
(2) Payment under this Section shall entitle the manufacturers, converters, or
distributors to possession and use of the facility.
(3) As used in this Section, "manufacturer" shall include a manufacturer, a converter,
a distributor, a factory branch, distributor branch, or other subsidiary thereof.
(4) The obligation of the manufacturer or converter to purchase a dealership facility,
pursuant to this Section, is equally applicable if an entity or person affiliated with the dealer
is the owner or lessor of the facility.
Acts 2012, No. 326, §1; Acts 2015, No. 435, §1.