Oregon Revised Statutes
As used in ORS 650.005 to 650.100, unless the context requires otherwise: “Area franchise” means a contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for a valuable consideration, to sell or negotiate the sale of franchises in the name or on behalf of the franchisor. “Control” means the possession…
Every person who offers to sell a franchise in this state shall maintain a complete set of books, records and accounts of any such sale and the disposition of the proceeds thereof, and shall, at such times as the Director of the Department of Consumer and Business Services may require, file in the office of the director a report, stating the names of each pe…
A sale or offer to sell a franchise is made in this state when an offer to sell is made in this state, or an offer to buy is accepted in this state, or, if the franchisee is domiciled in this state, the franchised business is or will be operated in this state. An offer to sell a franchise is made in this state when the offer either originates from this stat…
Any person who sells a franchise is liable as provided in subsection (3) of this section to the franchisee if the seller: Employs any device, scheme or artifice to defraud; or Makes any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were ma…
In accordance with this section and ORS chapter 183, the Director of the Department of Consumer and Business Services may from time to time make, amend and rescind such rules as are necessary to carry out the provisions of ORS 650.005 to 650.100.
The Director of the Department of Consumer and Business Services may: Undertake the investigations, including investigations outside this state, that the director considers necessary to: Determine whether a person: Has failed to comply with ORS 650.010; Has engaged in, is engaging in or is about to engage in an act or practice that would give rise to lia…
The Director of the Department of Consumer and Business Services shall serve an order under ORS 650.055 on the person named in the order. An order issued under ORS 650.055 becomes effective upon service on the person named in the order. ORS 183.413 to 183.470 apply to orders issued under ORS 650.055. Notwithstanding subsection (3) of this section, a perso…
For the purpose of any investigation or proceeding under ORS 650.005 to 650.100, the Director of the Department of Consumer and Business Services or any officer designated by the director may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memorand…
Whenever the Director of the Department of Consumer and Business Services determines that any person has engaged in, or is about to engage in, any act or practice which the director believes would give rise to liability under ORS 650.020, the director may bring suit in the name of the State of Oregon in any circuit court of this state to enjoin the acts or p…
Except as provided in ORS 650.080, the Director of the Department of Consumer and Business Services is an agent for the service of any process, notice or demand required to be served in a proceeding under ORS 650.005 to 650.100 for: Every person who sells or offers to sell a franchise in this state; and Every person, whether a resident or nonresident of th…
The service referred to in ORS 650.070 shall be made by: Serving the Director of the Department of Consumer and Business Services or a clerk on duty at the Department of Consumer and Business Services a copy of the process, notice or demand, with any papers required by law to be delivered in connection with the service, or by mailing to the department a cop…
The method of service referred to in ORS 650.075 may not be used if personal service can be used.
Nothing in ORS 650.005 to 650.100 limits any statutory or common-law rights of a person to bring an action in any court for an act involved in the sale of franchises, or the right of the state to punish a person for a violation of any law.
In addition to any other liability or penalty provided by law, the Director of the Department of Consumer and Business Services may impose a civil penalty on a person for violation of a rule adopted under ORS 650.050 or an order issued under ORS 650.055. The director shall impose a civil penalty under this section in the manner provided in ORS 183.745. The…
All penalties recovered under ORS 650.095 shall be paid into the State Treasury and credited to the General Fund and are available for general government expenses. MOTOR VEHICLE DEALERSHIPS
For the purposes of ORS 650.120 to 650.173: “Dealer” means any person that has been issued a vehicle dealer certificate under ORS 822.020 and pursuant to a franchise from a manufacturer, distributor or importer engages in buying, selling, leasing or exchanging new motor vehicles. “Dealership” means the location from which a dealer buys, sells, leases, trad…
As used in this section: “Access fee” means a requirement to pay money for access to protected dealer data. “Authorized integrator” means a person with which a dealer has a contractual relationship or to which the dealer otherwise gives express written authorization to have access to protected dealer data stored on a dealer data system or to write protecte…
Notwithstanding the terms of any franchise or other agreement, a manufacturer, distributor or importer may not: Require or attempt to require a dealer to accept delivery of any motor vehicle, part, accessory or any other commodity that the dealer did not voluntarily order. This subsection does not apply to recall safety and emissions campaign parts that the…
A manufacturer, distributor or importer may not, through any of the methods described in paragraph (b) of this subsection, directly or indirectly coerce or attempt to coerce a dealer to: Advertise, promote, offer or sell an extended service contract, an extended maintenance plan, a guaranteed asset protection waiver or other arrangement that pays a purchase…
Except as provided in paragraph (b) of this subsection, a manufacturer, distributor or importer may not require a dealer to construct a new dealer facility or materially alter or remodel an existing dealer facility within seven years after the date on which the dealer previously constructed, materially altered or remodeled the existing dealer facility if the…
Notwithstanding the terms of any franchise or other agreement, it is unlawful for any manufacturer, distributor or importer to cancel, terminate or refuse to continue any franchise without showing good cause, provided the dealer protests the termination by filing a complaint in court of competent jurisdiction within the time period specified in subsection (3…
As used in subsection (2) of this section, “fair and reasonable compensation” means the amount a dealer originally paid for vehicles minus any incentive payments, model close-out allowances or any other programs that apply to the vehicles. A manufacturer, distributor or importer that terminates, cancels, fails to renew or discontinues a franchise shall pay …
A dealer or former dealer may enjoin a manufacturer, distributor or importer, or the manufacturer’s, distributor’s or importer’s successor in interest, from franchising an additional motor vehicle dealership of the same line-make within the dealer’s or former dealer’s relevant market area for good cause, provided that the dealer files a complaint with a cour…
If a new motor vehicle becomes inoperative prior to being sold to a consumer, the franchisor is liable for the repair of the motor vehicle if the motor vehicle is inoperative due to a mechanical failure that is not the result of negligence on the part of the franchisee. Whenever a new motor vehicle becomes inoperative, the franchisee shall notify the franch…
Notwithstanding the terms of any franchise, the manufacturer is liable for any and all damage to new motor vehicles before delivery to a carrier or transporter. Whenever a new motor vehicle is damaged in transit, the dealer shall: Notify the manufacturer of the damage within three business days from the date of delivery to the dealer or within any addition…
Each manufacturer, distributor or importer shall specify in writing to each of the manufacturer’s, distributor’s or importer’s dealers in this state: The dealer’s obligations for predelivery preparation and warranty service on the manufacturer’s, distributor’s or importer’s motor vehicles; The schedule of compensation the manufacturer, distributor or impor…
As used in this section: “Do not drive order” means a notice in which a manufacturer advises owners of a vehicle not to drive the vehicle until the owner has obtained a repair for a safety defect in the vehicle. “Stop sale order” means a notice in which a manufacturer prohibits a franchisee from leasing or selling at wholesale or retail a vehicle in the fr…
To transfer, assign or sell the ownership or management, or any interest in the ownership or management, of a dealer, dealership or franchise, the dealer shall notify the franchisor of the decision to transfer, assign or sell. The notice must include completed application forms and related information the manufacturer, distributor or importer generally uses …
It shall be a violation of ORS 650.120 to 650.173 for a franchisor to require a franchisee to agree to the inclusion of a term or condition in a franchise, or in any lease or agreement ancillary or collateral to a franchise, as a condition to the offer, grant or renewal of such franchise, lease or agreement, that: Requires the franchisee to waive trial by j…
In any action brought by a dealer against a manufacturer, distributor or importer under ORS 650.120 to 650.173, any violation of ORS 650.140 or 650.150 by a manufacturer, distributor or importer may be considered an irreparable injury to the dealer for determining if a temporary restraining order should be issued.
Any dealer injured, or threatened with injury, by a manufacturer, distributor or importer as a result of a violation of ORS 650.120 to 650.173 may sue to enjoin such illegal, or threatened illegal conduct. The court, in an action brought under ORS 650.120 to 650.173, may award damages to a dealer who demonstrates an actual loss of money as a result of illeg…
A franchisor shall indemnify a franchisee or former franchisee or a successor in interest to the franchisee or former franchisee for damages, attorney fees, court expenses and related expenses that the franchisee or former franchisee reasonably incurs for a claim: That results from a defect in the condition, a characteristic or the design of a motor vehicle…
As used in ORS 650.200 to 650.250, unless the context requires otherwise: “Affiliate” means any person who, other than by means of a franchise, controls, is controlled by or is under common control with any other person. “Company operated station” means a motor fuel service station operated by a franchisor with employees of the franchisor or by a commissio…
Notwithstanding the terms of any franchise, a franchisor shall not: Require any franchisee to meet unreasonable mandatory minimum sales volume requirements for fuel or other products; Alter the franchise premises during the effective term of the franchise without the consent of the franchisee. This subsection does not apply to alterations required by law; …
Without limiting the other provisions of ORS 650.200 to 650.250, the following specific rights and prohibitions shall govern the relationship between the franchisor and the franchisee. It shall be unlawful and a violation of ORS 650.200 to 650.250 for any franchisor to: Require a franchisee to purchase or lease goods or services of a franchisor or from appr…
It is unlawful for any person in connection with the offer, sale or purchase of any franchise directly or indirectly: To sell or offer to sell a franchise in this state by means of any written or oral communication which includes an untrue statement of a material fact. To employ any device, scheme or artifice to defraud. To engage in any act, practice or …
Notwithstanding the terms of any franchise, a franchisor shall not prohibit or unreasonably withhold its consent to any sale, assignment or other transfer of the franchise by a franchisee to a qualified third party. If the franchisor consents to the proposed sale, assignment or other transfer and the proposed third party has not previously been a party to a…
Following the death of a motor fuel retailer franchisee and notwithstanding the terms of the franchise, the franchisor, in the case of leased marketing premises, shall enter into a new franchise with the designee of the motor fuel retailer franchisee on the terms and conditions then generally being extended by the franchisor to similarly situated motor fuel …
Notwithstanding the terms of any franchise, no franchisor may prohibit or prevent the sale, assignment or other transfer of a franchise to a corporation in which the franchisee has and maintains a controlling interest if the franchisee offers in writing personally to guarantee the performance of the obligations under the franchise. In the event of a sale, as…
A franchisor, as a condition for renewal of a franchisee lease or a supply agreement, shall not require a franchisee to operate a service station for the sale of motor fuel to the public for ultimate consumption in excess of 16 hours per day. This section shall not apply: If specific hours of business or operation are required under the franchisor’s prime …
For purposes of ORS 646.040, the transfer of motor fuel from a franchisor to a company operated station or a franchisee shall be a sale in commerce.
Without limiting the other provisions of ORS 650.200 to 650.250, the principle of good faith shall govern the relationship and dealings of the parties with each other.
Any person who is injured in the person’s business or property by reason of a violation of ORS 650.200 to 650.250 may sue therefor in any court having jurisdiction in the county where the defendant resides or is found, or any agent resides or is found, or where service may be obtained, for injunctive relief or to recover the damages sustained by the person. …
As used in ORS 650.300 to 650.480: “Area of sales responsibility” means the geographic area for which a grantor has granted a dealer the exclusive right to sell recreational vehicles manufactured or distributed by the grantor. “Camper” has the meaning given that term in ORS 801.180. “Consumer” means a purchaser or lessee, other than for purposes of resale…
When determining whether good cause exists for an action, a person shall consider: Concerning the dealer affected by the action: The extent of the dealer’s sales and leases of recreational vehicles in the area of sales responsibility; The nature and extent of the dealer’s investment in the dealer’s business; Whether the dealer’s service facilities, equip…
A dealership agreement shall: Contain a provision that the law of this state governs the agreement; Assign the dealer an area of sales responsibility; If the dealer is an individual, include the designation of a member of the dealer’s family to succeed to the dealer’s interests in the dealer’s business and dealership agreement upon the dealer’s death, inc…
As used in this section, “terms and conditions” includes rebates, discounts or any other program that may affect the ultimate price of a product. If dealers compete for the sale or lease of recreational vehicles to the motoring public, a grantor shall offer to sell products to the dealers at the same prices and on the same terms and conditions. A grantor m…
Without good cause, a grantor may not: Terminate, cancel or fail to renew a dealership agreement. During the term of a dealership agreement, take an action that has a substantial adverse effect on a dealer’s ability to sell or lease recreational vehicles, including changing the dealer’s area of sales responsibility. A grantor shall give a dealer at least …
Upon the termination or cancellation of or failure to renew a dealership agreement by the grantor, the grantor shall, at the dealer’s request and within 30 days of the termination, cancellation or failure to renew, purchase from the dealer: All new recreational vehicles that the dealer purchased from the grantor within 12 months prior to the effective date …
As used in this section, “coerce” includes threatening to terminate, cancel or fail to renew a dealership agreement without good cause. A grantor may not coerce, or attempt to coerce, a dealer: To purchase a product that the dealer did not order; To enter into an agreement with the grantor; or To take any action that is unfair to the dealer. A grantor m…
A dealer shall give a grantor 30 days’ notice in writing before the dealer transfers an interest in a dealership agreement or ownership of a business that is the subject of a dealership agreement. The dealer shall include in a notice under this section the identity, financial ability and qualifications of the proposed transferee and any other information re…
A grantor shall permit a dealer who is an individual to change the dealer’s designation of a member of the dealer’s family to succeed to the dealer’s interest in the dealer’s business and dealership agreement. Upon the dealer’s death, incapacity or retirement, the grantor shall accept the transfer of the dealer’s interest in the dealer’s business and dealer…
A warrantor shall, for a warranty provided by the warrantor: Provide reasonable compensation to a dealer for diagnostic and repair services; Allow a dealer reasonable periods for completing diagnostic and repair services; Inform a dealer in writing of: The compensation that the warrantor will pay the dealer to perform warranty service; and The time peri…
A grantor or warrantor shall: Assume the liability imposed upon a dealer because of defects in products the grantor or warrantor supplied to the dealer; and Notify a dealer of: A recall of a product. The dates by which parts and equipment, including tires and chassis and parts of chassis, will be available to remedy defects. If a grantor or warrantor no…
A dealer shall: Perform warranty service in a timely and competent manner on a recreational vehicle that the dealer did not sell or lease if: The vehicle is of the same line make the dealer offers; and The grantor or warrantor has agreed to compensate the dealer for performing the warranty service; and Complete all predelivery inspections required by the…
Before delivering a new recreational vehicle to a dealer, the grantor shall notify the dealer of: Uncorrected damage to the vehicle. Corrected damage that exceeded six percent of the net invoice cost of the vehicle to the dealer. Before selling or leasing a new recreational vehicle to a consumer, the dealer shall: Disclose to the consumer any structural …
Within three days of receiving a damaged or defective recreational vehicle from the grantor, the dealer shall: Notify the grantor in writing of the damage or defect; and Ask the grantor to permit the dealer to repair the damage or correct the defect at the expense of the grantor; or Reject the vehicle. A dealer may reject a vehicle if, within 10 days of …
A grantor may not sell a recreational vehicle to or through a dealer without having entered into a dealership agreement with the dealer. A grantor may not own, operate or control a dealership in this state. Notwithstanding subsection (2) of this section, a grantor may own, operate or control a dealership in this state if: The ownership, operation or contr…
Notwithstanding any dealership agreement: A grantor shall indemnify a dealer against and hold the dealer harmless from any cost, loss or damage, including attorney fees, arising out of a claim, action or judgment based on the grantor’s negligence or intentional misconduct. A dealer shall indemnify a grantor against and hold the grantor harmless from any co…
Notwithstanding any agreement to the contrary: A warrantor shall indemnify a dealer against and hold the dealer harmless from any cost, loss or damage, including attorney fees, arising out of a claim, action or judgment based on the warrantor’s negligence or intentional misconduct. A dealer shall indemnify a warrantor against and hold the warrantor harmles…
A dealer injured by a grantor’s violation of ORS 650.320, 650.330, 650.340, 650.350, 650.360, 650.370, 650.380, 650.400, 650.420, 650.430, 650.440 or 650.450 may bring a civil action against the grantor to recover the dealer’s actual damages. A grantor injured by a dealer’s violation of ORS 650.370, 650.410, 650.420 or 650.450 may bring a civil action again…
A dealer injured by a warrantor’s violation of ORS 650.390, 650.400, 650.410 or 650.460 may bring a civil action against the warrantor to recover the dealer’s actual damages. A warrantor injured by a dealer’s violation of ORS 650.410 or 650.460 may bring a civil action against the dealer to recover the warrantor’s actual damages. The court shall award reas…