State Codes and Statutes

Statutes > Rhode-island > Title-31 > Chapter-31-5-1 > 31-5-1-4-2

SECTION 31-5.1-4.2

   § 31-5.1-4.2  Establishing new dealershipsand relocating existing dealerships. – (a) In the event that a manufacturer seeks to enter into a franchiseestablishing an additional new motor vehicle dealership, adding an additionallocation for an existing new motor vehicle dealership, or relocating anexisting new motor vehicle dealership within or into a relevant market areawhere the same line or make is then represented, except when the corporationoperating the new motor vehicle dealership contains one or more officers whowere also officers of a dealership operating at the same location as the newmotor vehicle dealership immediately prior to the establishment of the newmotor vehicle dealership, the manufacturer shall in writing by certified mailfirst notify the department and each new motor vehicle dealer in the same lineor make in the relevant market area of the intention to establish an additionaldealership to add an additional location for an existing new motor vehicledealership, or to relocate an existing dealership within or into that marketarea. Within thirty (30) days of receiving notice or within thirty (30) daysafter the end of any appeal procedure provided by the manufacturer, anyaffected new motor vehicle dealership may file with the department a protest tothe establishing or relocating of the new motor vehicle dealership or adding anadditional location for an existing new motor vehicle dealership. When aprotest is filed, the department shall inform the manufacturer that a timelyprotest has been filed, and that the manufacturer shall not establish orrelocate the proposed new motor vehicle dealership or add the proposedadditional location for an existing new motor vehicle dealership until thedepartment has held a hearing, nor until the department has determined thatthere is good cause for not permitting the new motor vehicle dealership. Forthe purposes of this section, the reopening in a relevant market area of a newmotor vehicle dealership shall be deemed the establishment of an additional newmotor vehicle dealership.

   (b) In determining whether good cause has been establishedfor entering into or relocating an additional franchise for the same line ormake, or adding an additional location for an existing new motor vehicledealership, the department shall take into consideration the existingcircumstances, including, but not limited to:

   (1) Permanence of the investment of the existing new motorvehicle dealer(s) in the community;

   (2) Whether the new motor vehicle dealers of the same line ormake in that relevant market area are providing adequate consumer care for themotor vehicles of the line or make in the market area which shall include theadequacy of motor vehicle sales and service facilities, equipment, supply ofmotor vehicle parts, and qualified service personnel;

   (3) Whether there is reasonable evidence that after thegranting of the new motor vehicle dealership, that the market would support allof the dealerships of that line or make in the relevant market area;

   (4) Whether it is injurious to the public welfare for anadditional new motor vehicle dealership to be established;

   (5) The growth or decline in population and new motor vehicleregistrations during the past five (5) years in the relevant market area;

   (6) Whether the manufacturer is motivated principally by goodfaith to establish an additional or new motor vehicle dealer and not bynon-economic considerations;

   (7) Whether the manufacturer has denied its existing newmotor vehicle dealers of the same line or make the opportunity for reasonablegrowth, market expansion, or relocation;

   (8) The reasonably expected or anticipated vehicle market forthe relevant market area, including demographic factors such as age ofpopulation, income, size class preference, product popularity, retail leasetransactions, or other factors affecting sales to consumers in the relevantmarket area;

   (9) Growth or decline in population, density of population,and new car registrations in the relevant market area;

   (10) Distance, travel time, traffic patterns, andaccessibility between the existing new dealership of the same new line make andthe location of the proposed new or relocated dealership;

   (11) The amount of business transacted by existing new motorvehicle dealers of the line or make when compared with the amount of businessavailable to them;

   (12) Whether the existing new motor vehicle dealers of theline or make are receiving vehicles and parts in quantities promised by themanufacturer, factory branch or distributor and on which promised quantitiesexisting new motor vehicle dealers based their investment and scope ofoperations.

   (c) Any parties to a hearing by the department concerning theestablishing or relocating of a new motor vehicle dealership or adding anadditional location for an existing new motor vehicle dealership shall have aright to a review of the decision in a court of competent jurisdiction.

   (d) At any hearing conducted by the department under thissection, the manufacturer or dealer seeking to establish an additional newmotor vehicle dealership, relocate an existing new motor vehicle dealership, oradd an additional location for an existing new motor vehicle dealership shallbear the burden of proof in establishing that good cause exists for it.

   (e) Every person, firm or corporation who prior to the retailsale of a motor vehicle, converts or otherwise assembles, installs or affixes abody, cab or special equipment to a chassis or who adds to, subtracts from ormodifies a previously assembled or manufactured motor vehicle shall be requiredto comply with the requirements of this section.

State Codes and Statutes

Statutes > Rhode-island > Title-31 > Chapter-31-5-1 > 31-5-1-4-2

SECTION 31-5.1-4.2

   § 31-5.1-4.2  Establishing new dealershipsand relocating existing dealerships. – (a) In the event that a manufacturer seeks to enter into a franchiseestablishing an additional new motor vehicle dealership, adding an additionallocation for an existing new motor vehicle dealership, or relocating anexisting new motor vehicle dealership within or into a relevant market areawhere the same line or make is then represented, except when the corporationoperating the new motor vehicle dealership contains one or more officers whowere also officers of a dealership operating at the same location as the newmotor vehicle dealership immediately prior to the establishment of the newmotor vehicle dealership, the manufacturer shall in writing by certified mailfirst notify the department and each new motor vehicle dealer in the same lineor make in the relevant market area of the intention to establish an additionaldealership to add an additional location for an existing new motor vehicledealership, or to relocate an existing dealership within or into that marketarea. Within thirty (30) days of receiving notice or within thirty (30) daysafter the end of any appeal procedure provided by the manufacturer, anyaffected new motor vehicle dealership may file with the department a protest tothe establishing or relocating of the new motor vehicle dealership or adding anadditional location for an existing new motor vehicle dealership. When aprotest is filed, the department shall inform the manufacturer that a timelyprotest has been filed, and that the manufacturer shall not establish orrelocate the proposed new motor vehicle dealership or add the proposedadditional location for an existing new motor vehicle dealership until thedepartment has held a hearing, nor until the department has determined thatthere is good cause for not permitting the new motor vehicle dealership. Forthe purposes of this section, the reopening in a relevant market area of a newmotor vehicle dealership shall be deemed the establishment of an additional newmotor vehicle dealership.

   (b) In determining whether good cause has been establishedfor entering into or relocating an additional franchise for the same line ormake, or adding an additional location for an existing new motor vehicledealership, the department shall take into consideration the existingcircumstances, including, but not limited to:

   (1) Permanence of the investment of the existing new motorvehicle dealer(s) in the community;

   (2) Whether the new motor vehicle dealers of the same line ormake in that relevant market area are providing adequate consumer care for themotor vehicles of the line or make in the market area which shall include theadequacy of motor vehicle sales and service facilities, equipment, supply ofmotor vehicle parts, and qualified service personnel;

   (3) Whether there is reasonable evidence that after thegranting of the new motor vehicle dealership, that the market would support allof the dealerships of that line or make in the relevant market area;

   (4) Whether it is injurious to the public welfare for anadditional new motor vehicle dealership to be established;

   (5) The growth or decline in population and new motor vehicleregistrations during the past five (5) years in the relevant market area;

   (6) Whether the manufacturer is motivated principally by goodfaith to establish an additional or new motor vehicle dealer and not bynon-economic considerations;

   (7) Whether the manufacturer has denied its existing newmotor vehicle dealers of the same line or make the opportunity for reasonablegrowth, market expansion, or relocation;

   (8) The reasonably expected or anticipated vehicle market forthe relevant market area, including demographic factors such as age ofpopulation, income, size class preference, product popularity, retail leasetransactions, or other factors affecting sales to consumers in the relevantmarket area;

   (9) Growth or decline in population, density of population,and new car registrations in the relevant market area;

   (10) Distance, travel time, traffic patterns, andaccessibility between the existing new dealership of the same new line make andthe location of the proposed new or relocated dealership;

   (11) The amount of business transacted by existing new motorvehicle dealers of the line or make when compared with the amount of businessavailable to them;

   (12) Whether the existing new motor vehicle dealers of theline or make are receiving vehicles and parts in quantities promised by themanufacturer, factory branch or distributor and on which promised quantitiesexisting new motor vehicle dealers based their investment and scope ofoperations.

   (c) Any parties to a hearing by the department concerning theestablishing or relocating of a new motor vehicle dealership or adding anadditional location for an existing new motor vehicle dealership shall have aright to a review of the decision in a court of competent jurisdiction.

   (d) At any hearing conducted by the department under thissection, the manufacturer or dealer seeking to establish an additional newmotor vehicle dealership, relocate an existing new motor vehicle dealership, oradd an additional location for an existing new motor vehicle dealership shallbear the burden of proof in establishing that good cause exists for it.

   (e) Every person, firm or corporation who prior to the retailsale of a motor vehicle, converts or otherwise assembles, installs or affixes abody, cab or special equipment to a chassis or who adds to, subtracts from ormodifies a previously assembled or manufactured motor vehicle shall be requiredto comply with the requirements of this section.


State Codes and Statutes

State Codes and Statutes

Statutes > Rhode-island > Title-31 > Chapter-31-5-1 > 31-5-1-4-2

SECTION 31-5.1-4.2

   § 31-5.1-4.2  Establishing new dealershipsand relocating existing dealerships. – (a) In the event that a manufacturer seeks to enter into a franchiseestablishing an additional new motor vehicle dealership, adding an additionallocation for an existing new motor vehicle dealership, or relocating anexisting new motor vehicle dealership within or into a relevant market areawhere the same line or make is then represented, except when the corporationoperating the new motor vehicle dealership contains one or more officers whowere also officers of a dealership operating at the same location as the newmotor vehicle dealership immediately prior to the establishment of the newmotor vehicle dealership, the manufacturer shall in writing by certified mailfirst notify the department and each new motor vehicle dealer in the same lineor make in the relevant market area of the intention to establish an additionaldealership to add an additional location for an existing new motor vehicledealership, or to relocate an existing dealership within or into that marketarea. Within thirty (30) days of receiving notice or within thirty (30) daysafter the end of any appeal procedure provided by the manufacturer, anyaffected new motor vehicle dealership may file with the department a protest tothe establishing or relocating of the new motor vehicle dealership or adding anadditional location for an existing new motor vehicle dealership. When aprotest is filed, the department shall inform the manufacturer that a timelyprotest has been filed, and that the manufacturer shall not establish orrelocate the proposed new motor vehicle dealership or add the proposedadditional location for an existing new motor vehicle dealership until thedepartment has held a hearing, nor until the department has determined thatthere is good cause for not permitting the new motor vehicle dealership. Forthe purposes of this section, the reopening in a relevant market area of a newmotor vehicle dealership shall be deemed the establishment of an additional newmotor vehicle dealership.

   (b) In determining whether good cause has been establishedfor entering into or relocating an additional franchise for the same line ormake, or adding an additional location for an existing new motor vehicledealership, the department shall take into consideration the existingcircumstances, including, but not limited to:

   (1) Permanence of the investment of the existing new motorvehicle dealer(s) in the community;

   (2) Whether the new motor vehicle dealers of the same line ormake in that relevant market area are providing adequate consumer care for themotor vehicles of the line or make in the market area which shall include theadequacy of motor vehicle sales and service facilities, equipment, supply ofmotor vehicle parts, and qualified service personnel;

   (3) Whether there is reasonable evidence that after thegranting of the new motor vehicle dealership, that the market would support allof the dealerships of that line or make in the relevant market area;

   (4) Whether it is injurious to the public welfare for anadditional new motor vehicle dealership to be established;

   (5) The growth or decline in population and new motor vehicleregistrations during the past five (5) years in the relevant market area;

   (6) Whether the manufacturer is motivated principally by goodfaith to establish an additional or new motor vehicle dealer and not bynon-economic considerations;

   (7) Whether the manufacturer has denied its existing newmotor vehicle dealers of the same line or make the opportunity for reasonablegrowth, market expansion, or relocation;

   (8) The reasonably expected or anticipated vehicle market forthe relevant market area, including demographic factors such as age ofpopulation, income, size class preference, product popularity, retail leasetransactions, or other factors affecting sales to consumers in the relevantmarket area;

   (9) Growth or decline in population, density of population,and new car registrations in the relevant market area;

   (10) Distance, travel time, traffic patterns, andaccessibility between the existing new dealership of the same new line make andthe location of the proposed new or relocated dealership;

   (11) The amount of business transacted by existing new motorvehicle dealers of the line or make when compared with the amount of businessavailable to them;

   (12) Whether the existing new motor vehicle dealers of theline or make are receiving vehicles and parts in quantities promised by themanufacturer, factory branch or distributor and on which promised quantitiesexisting new motor vehicle dealers based their investment and scope ofoperations.

   (c) Any parties to a hearing by the department concerning theestablishing or relocating of a new motor vehicle dealership or adding anadditional location for an existing new motor vehicle dealership shall have aright to a review of the decision in a court of competent jurisdiction.

   (d) At any hearing conducted by the department under thissection, the manufacturer or dealer seeking to establish an additional newmotor vehicle dealership, relocate an existing new motor vehicle dealership, oradd an additional location for an existing new motor vehicle dealership shallbear the burden of proof in establishing that good cause exists for it.

   (e) Every person, firm or corporation who prior to the retailsale of a motor vehicle, converts or otherwise assembles, installs or affixes abody, cab or special equipment to a chassis or who adds to, subtracts from ormodifies a previously assembled or manufactured motor vehicle shall be requiredto comply with the requirements of this section.