2019 Indiana Code
Title 9. Motor Vehicles
Article 32. Dealer Services
Chapter 13. Unfair Practices
9-32-13-28. Dealer requesting payment for manufacturer or distributor following termination, cancellation, or nonrenewal of franchise; discontinuance of line make
Sec. 28. (a) This section applies when a dealer requests payment from a manufacturer or distributor following:
(1) the termination, cancellation, or nonrenewal by the manufacturer or distributor of a franchise between the dealer and the manufacturer or distributor; or
(2) the discontinuance of a line make by the manufacturer or distributor.
(b) Not more than ninety (90) days after a manufacturer or distributor receives a request for payment from a dealer described in subsection (a), the manufacturer or distributor shall pay to the dealer the following amounts for items that are in the dealer's inventory or possession at the time of termination, cancellation, nonrenewal, or discontinuance, that the dealer delivers to the manufacturer or distributor, and as to which the dealer conveys clear title to the manufacturer or distributor under subsection (c):
(1) For:
(A) current model year motor vehicles; or
(B) immediately preceding model year motor vehicles with less than three hundred (300) miles;
acquired from the manufacturer or distributor in the usual course of business, the cost at acquisition less any discounts or allowances received from the manufacturer or distributor.
(2) For all new, unused, and undamaged parts in original packaging that were purchased from the manufacturer or distributor:
(A) the cost listed in the manufacturer's or distributor's parts catalog in effect at the time of termination, cancellation, nonrenewal, or discontinuance; minus
(B) any allowances authorized by the manufacturer or distributor.
(3) For required special tools, equipment, or computer equipment that was used for reporting financial data to the manufacturer or distributor, used solely for the franchise being terminated, and purchased by the dealer during the two (2) years immediately preceding the termination, cancellation, nonrenewal, or discontinuance, fair market value.
(4) For signs that bear a trademark or trade name, that the dealer was required by the manufacturer or distributor to purchase, and that the dealer purchased within three (3) years of the termination, cancellation, nonrenewal, or discontinuance, fair market value.
For purposes of this subsection, fair market value is determined on the date of termination, cancellation, nonrenewal, or discontinuance.
(c) Title to items described in subsection (b) transfers from a dealer to a manufacturer or distributor on the date of termination, cancellation, nonrenewal, or discontinuance. The dealer has an enforceable security interest in the transferred items.
(d) It is an unfair practice for a manufacturer or distributor to violate this section.
As added by P.L.152-2013, SEC.4.
