8-2430. Establishment of additional or relocation of existing new vehicle dealer; procedure; relevant market area.
8-2430
8-2430. Establishment of additional or relocation of existing new vehicle
dealer; procedure; relevant market area.
(a) Any licensee, or proposed licensee, who proposes to establish an
additional new vehicle dealer for new motor vehicles, including a
supplemental place of business for new motor vehicles,
or permit the
relocation of an existing new vehicle dealer in new motor vehicles to a
location within the relevant market area where the same line-make vehicle is
already presently represented by a new vehicle dealer or dealers in new motor
vehicles of that same line-make shall give written notice of its intention by
certified mail to the director of vehicles and shall establish good cause for
adding or relocating the new vehicle dealer. The notice required hereunder
shall state:
(1) The specific location at which the additional or relocated new vehicle
dealer in new motor vehicles will be established;
(2) the date on or after which the licensee, or proposed licensee, intends
to be engaged in business as a new vehicle dealer in new motor vehicles at the
proposed location;
(3) the identity of all new vehicle dealers in new motor vehicles who are
franchised to sell the same line-make vehicle from licensed locations whose
relevant market areas include the location where the additional or relocated
dealer is proposed to be located;
(4) the names and addresses of the new vehicle dealer-operator and principal
investors in the proposed new vehicle dealer's business; and
(5) a short and plain statement of the evidence the licensee, or proposed
licensee, intends to rely upon in meeting the burden of proof for establishing
good cause for an additional new vehicle dealer for new motor vehicles or
permit relocation of an existing new vehicle dealer in new motor vehicles
within a relevant market area where the same line-make of vehicle is presently
represented by a new vehicle dealer.
Immediately upon receipt of such notice the director shall cause a notice to
be published in the Kansas register. The published notice shall state that a
petition or complaint by any dealer with standing to protest pursuant to
subsection (c) must be filed with the director not more than 30 days from the
date of publication of the notice in the Kansas register. The published notice
shall describe and identify the proposed new vehicle dealer and dealership
sought to be licensed, and the director shall cause a copy of the notice to be
mailed to those dealers identified in the notice under paragraph (3) of this
subsection.
(b) (1) An application for a new vehicle dealer license to act as a vehicle
dealer in new motor vehicles in any city or county shall not
be granted when the licensee, or proposed licensee, seeking to establish an
additional new vehicle dealer, including a supplemental place of
business for new motor vehicles,
or relocate an existing new vehicle dealer in the same line-make
of vehicles fails to comply with the requirements of this act, or when:
(A) A timely protest is filed by a presently existing new vehicle dealer in
new motor vehicles with standing to protest as defined in subsection (c); and
(B) the director has held a hearing and determined that good
cause has not been established for permitting the addition or
relocation of such new vehicle dealer. The
burden of proof in establishing good cause to permit an additional new vehicle
dealer in new motor vehicles or to permit the relocation of an existing new
vehicle dealer in new motor vehicles shall be on the licensee, or proposed
licensee, seeking to establish or relocate a new vehicle dealer and shall be by
a preponderance of the evidence presented;
(2) in determining whether good cause has been established for an additional
new vehicle dealer or the relocation of an existing new vehicle dealer for the
same line-make of vehicle as provided herein, the director shall take into
consideration the existing circumstances, including, but not limited to:
(A) Permanency of the investment of both the existing and proposed new
vehicle dealers;
(B) growth or decline in population and new car registrations in the
relevant market area;
(C) effect on the consuming public in the relevant market area;
(D) whether it is injurious or beneficial to the public welfare for an
additional new vehicle dealer to be established;
(E) whether the new vehicle dealers of the same line-make vehicles in that
relevant market area are providing adequate competition and convenient customer
care for the vehicles of the line-make in the market area which shall include
the adequacy of vehicle sales and service facilities, equipment, supply of
vehicle parts and qualified service personnel;
(F) whether the establishment of an additional new vehicle dealer would
increase competition and whether such increased competition would be in the
public interest;
(G) the effect and denial of relocation will have on a relocating dealer;
and
(H) the effect the new vehicle dealer addition or relocation which is
proposed will have on the existing dealer or dealers.
The application for a new vehicle dealer license shall not be denied after
the applicant meets the requirements of this section if the applicant otherwise
meets the requirements of the vehicle dealers and
manufacturers licensing act K.S.A.
8-2401, et seq., and amendments thereto.
(c) An existing new vehicle dealer in new motor vehicles shall have standing
to protest the proposed addition or relocation of a new vehicle dealer in new
motor vehicles where such existing new vehicle dealer in new motor vehicles has
a franchise agreement for the same line-make vehicle as that which is to be
sold or offered for sale or transfer by the proposed additional or relocated
new vehicle dealer and is physically located such that the protesting dealer's
relevant market area, as defined in subsection (e), includes the location where
the additional or relocated dealer is proposed to be located.
(d) The director shall not issue a license for the proposed additional or
relocated new vehicle dealer until a final decision is rendered determining
good cause exists for establishing an additional new vehicle dealer or
relocating a new vehicle dealer and that the application for the new vehicle
dealer's license should be granted.
(e) The words or phrases used in this section shall have the meanings
otherwise provided by law, except the following specific words or phrases shall
have the following meanings:
(1) "Line-make vehicle" means those new motor vehicles which are offered
for sale, lease or distribution under a common name, trademark, service mark or
brand name of the manufacturer or distributor of the same; and
(2) "relevant market area" means the area within:
(A) A radius of 10 miles around an existing new vehicle dealer in new motor
vehicles, if the existing new vehicle dealer's principal location is in a
county having a population of 30,000 or more persons;
(B) a radius of 15 miles around an existing new vehicle dealer in new motor
vehicles, if the existing new vehicle dealer's principal location is in a
county having a population of less than 30,000 persons; or
(C) the area of
responsibility defined in the franchise agreement of the existing dealer,
whichever is greater.
(f) No person, entity, licensee or their agents or employees, shall require
the relocation, cancellation or termination of an existing dealer or otherwise
take any action to penalize any dealer who exercises the rights provided under
this section, or undertake such action for the purpose of preventing or
avoiding the exercise by a dealer of the rights provided under this section.
No franchise agreement made, entered or renewed after the effective date of
this act shall contain provisions which avoid or circumvent the requirements of
this act.
(g) A dealer's license may be denied, suspended or revoked, or the renewal
of a dealer's license may be refused by the director for the dealer's failure
to comply with this section or for otherwise violating its provisions.
(h) Any licensee, or proposed licensee, aggrieved by a final order of the
director may appeal as provided in subsection (d) of K.S.A. 8-2410, and
amendments thereto.
History: L. 1991, ch. 32, § 1;
L. 1993, ch. 252, § 8;
L. 1994, ch. 302, § 8; July 1.