2011 South Dakota Code
Title 32 MOTOR VEHICLES
Chapter 06B. Regulation Of Vehicle Dealers
§32-6B-69 Franchise agreement--Change of terms--Dealer rights.

32-6B-69. Franchise agreement--Change of terms--Dealer rights. No franchisor may modify a franchise during the terms of the franchise or upon its renewal if the modification would substantially and adversely affect the vehicle dealer's rights, obligations, investment, or return on investment without giving at least sixty days notice of the proposed modification to the vehicle dealer unless the change is required by law. Within the sixty-day period, the vehicle dealer may file an objection requesting a determination of whether good cause exists for permitting the proposed modification with the Department of Revenue and serve notice on the franchisor. The department shall promptly schedule a hearing to be held under the provisions of chapter 1-26 and decide the matter within ninety days from the date the protest is filed. Multiple protests pertaining to the same proposed modification shall be consolidated for hearing. No proposed modification may take effect with respect to the protesting vehicle dealer's franchise pending the determination of the matter. The written notice shall contain on the first page thereof a conspicuous statement which reads substantially as follows: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE SOUTH DAKOTA DEPARTMENT OF REVENUE IN PIERRE, SOUTH DAKOTA, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSED MODIFICATION OR REPLACEMENT OF YOUR FRANCHISE WITH A SUCCEEDING FRANCHISE UNDER THE TERMS OF SOUTH DAKOTA LAW IF YOU OPPOSE THIS ACTION."

This section does not apply to franchise agreements involving travel trailers or motor homes.

Source: SL 1998, ch 180, § 1; SL 2004, ch 17, § 92; SL 2005, ch 161, § 2; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.