32-6B-46 — Termination or noncontinuance by franchisor--Determination of cause.


     32-6B-46.   Termination or noncontinuance by franchisor--Determination of cause. In determining whether cause is established for terminating or not continuing a franchise, the department shall consider the existing circumstances, including, but not limited to:
             (1)      Failure by the franchisee to comply with requirements imposed upon him by the franchise, which requirements are both essential and reasonable;
             (2)      Use of bad faith by the franchisee in carrying out the terms of the franchise;
             (3)      Whether the franchisee has adequate new vehicle facilities, equipment, parts, and qualified management, sales, and service personnel to reasonably provide consumer care for the new vehicles sold at retail by the franchisee;
             (4)      Whether the franchisee refuses to honor warranties of the franchisor to be performed by the franchisee if the franchisor reimburses the franchisee for such warranty work performed by the franchisee; or
             (5)      Whether it is injurious to the public welfare for the business of the franchisee to be discontinued.

Source: SL 1986, ch 250, § 47.