2023 Oklahoma Statutes
Title 47. Motor Vehicles
§47-565.3. Notice to manufacturer or distributor of proposed sale, transfer, or assignment of franchise.
A. A franchised vehicle dealer proposing a sale, transfer, or assignment of a franchise agreement or the business and assets of a dealership or an interest in a dealership to another person, hereinafter transferee, shall notify the manufacturer or distributor whose vehicles the dealer is franchised to sell of the proposed action of the dealer. The manufacturer or distributor may make written request to the proposed transferee to submit completed application forms and related information generally utilized by a manufacturer to evaluate such a proposal and a copy of all agreements related to the proposed sale, transfer, or assignment.
B. The approval by the manufacturer or distributor of the sale, transfer, or assignment shall not be unreasonably withheld unless the proposed transferee is not of good moral character or fails to meet the written, reasonable, and uniformly applied requirements of the manufacturer or distributor relating to prospective franchisees. Approval of the transfer shall not be made contingent upon the transferee meeting unreasonable facility requirements or performance standards different than those contained in the transferor’s franchise agreement and related addendum and agreements, and any written notices provided to the existing dealer prior to the manufacturer’s or distributor’s receipt of any written notice from the existing dealer of the proposed transfer. However, to be valid, any proposed change to the franchise pursuant to written notice from the manufacturer or distributor shall be in compliance with existing law. The burden of proof shall be upon the manufacturer or distributor to show good cause existed to withhold approval. The manufacturer or distributor that has made such a determination shall send a letter by certified mail to the dealer and the applicant of its refusal to approve the proposal, which shall include a statement of the specific grounds for refusal, within sixty (60) days after the later of:
1. Receipt by the manufacturer or distributor of the notice of the proposed sale, transfer, or assignment; or
2. Receipt by the manufacturer or distributor of the information requested from the proposed transferee pursuant to subsection A of this section if the manufacturer or distributor has requested such information within fifteen (15) days of receipt of written notice of the proposed sale, transfer, or assignment.
C. Failure of the manufacturer or distributor to send its notice of refusal pursuant to subsection B of this section shall mean that the application for the proposed sale, transfer, or assignment is approved.
D. If the proposed sale, transfer, or assignment is to an existing owner’s family member or other existing owner, the manufacturer or distributor’s evaluation of the proposal is limited to the written, reasonable, and uniformly applied requirements of the manufacturer or distributor relating to good moral character and financial qualifications. Notwithstanding the foregoing, a change in dealer operator shall be addressed pursuant to the provisions of Section 565.1 of this tile.
E. A dealership or dealership owner receiving notice of refusal of the sale, transfer, or assignment shall have the right to file a protest with the Oklahoma New Motor Vehicle Commission within thirty (30) days of receipt of the refusal. In the event a protest is filed, the manufacturer or distributor shall have the burden of proof to establish the proposed transferee or the proposed transferee’s controlling executive management is not of good moral character or fails to meet the written reasonable and uniformly applied requirements of the manufacturer or distributor relating to prospective franchisees or that the facility requirements are not different than those contained in the transferor’s franchise agreement.
F. Notwithstanding any other provision of this section, the dealer shall submit a signed copy of the dealer sales and service agreement resulting from any completed sale, transfer, or assignment of a franchise to the Oklahoma New Motor Vehicle Commission within fifteen (15) business days.
Added by Laws 1999, c. 132, § 1, emerg. eff. April 27, 1999. Amended by Laws 2014, c. 402, § 4, eff. Nov. 1, 2014; Laws 2023, c. 29, § 11, eff. Nov. 1, 2023.
