Oregon Law
Law as of Jan 1, 2026
Chapter contents
650.005Definitions for ORS 650.005 to 650.100 650.010Franchise sellers required to maintain books and records; filings with director 650.015When franchise sale or offer for sale is made in this state 650.020Liability of franchise seller; defenses; amount of recovery; attorney fees; joint and several liability; limitation on action; indemnification of corporation; right of contribution 650.050Rules 650.055General duties and powers of director 650.057Orders issued under ORS 650.055 650.060Investigative powers of director; protection against unreasonable investigation; contempt 650.065Injunctive relief; attorney fees; appointment of receiver or conservator; conditions of awarding damages and injunctive relief 650.070Director as agent for service of process 650.075Manner of executing service of process; effect of initial service 650.080When personal service of process required 650.085Other civil or criminal remedies unaffected 650.095Civil penalties 650.100Disposition of civil penalties 650.120Definitions for ORS 650.120 to 650.173 650.123Use of protected dealer data; prohibitions; liabilities 650.130Prohibited conduct by manufacturer, distributor or importer 650.132Prohibition on coercing dealers to take certain actions 650.133Constructing, altering or remodeling dealer facility; prohibitions; exceptions; purchasing goods or services from specific vendor; intellectual property infringement 650.140Good cause required to terminate dealer franchise; protest of termination; notice; when reasons for termination required 650.145Compensation due dealer upon termination of franchise 650.150Enjoining establishment of certain franchises or relocation of existing dealership in same market area; complaint; determination of good cause; when offer of new franchise or relocated dealership required; notice to existing or former dealerships; attorney fees 650.153Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer 650.155Liability of manufacturer for damages to vehicles before delivery to carrier 650.158Predelivery preparation and warranty service; notice to dealers; schedule of compensation; determination; claims by dealers; audits of dealers’ claims 650.160[1980 c.3 §5; repealed by 1991 c.609 §4] 650.161Compensation for repairs to vehicles subject to recall; claims for compensation; prohibited practices; exclusivity of remedy 650.162Transfer, assignment or sale of interest in dealership or franchise; notices; approval of franchisor; right of first refusal 650.165Prohibited franchise conditions 650.167Violation of ORS 650.140 or 650.150 as irreparable injury 650.170Dealer’s remedy 650.173Franchisor indemnification of franchisee or former franchisee 650.200Definitions for ORS 650.200 to 650.250 650.205Prohibited conduct by franchisor 650.210Rights and prohibitions governing relationship between franchisor and franchisee 650.215Prohibited conduct in offer, sale or purchase of franchise 650.220Consent of franchisor to sale, assignment or transfer of franchise; conditions for trial franchise 650.225Death of franchisee; when franchisor required to enter into new franchise with designee of franchisee; notice; qualifications; possession of franchise premises 650.230Transfer of franchise to corporation in which franchisee has controlling interest; conditions 650.235Franchisor prohibited from requiring operation of service station in excess of 16 hours per day; exceptions 650.240When transfer of motor fuel a sale in commerce 650.245Principle of good faith 650.250Injunctive relief or damages; limitation on commencement of action; attorney fees 650.300Definitions for ORS 650.300 to 650.480 650.310Good cause; determination 650.320Dealership agreement 650.330Comparable terms and conditions; grantor sales to public 650.340Termination, cancellation or failure to renew; notice; grounds 650.350Dealer’s rights upon termination, cancellation or failure to renew 650.360Coercion prohibited 650.370Transfer by dealer 650.380Dealer’s successor 650.390Dealer compensation for warranty service; disapproval of warranty service claims; recall notice requirements 650.400Recalls 650.410Dealer’s warranty obligations 650.420Required disclosures 650.430Damaged or defective vehicles 650.440Grantor’s ownership, operation or control of dealership 650.450Indemnification; grantor and dealer 650.460Indemnification; warrantor and dealer 650.470Remedies; grantor and dealer; attorney fees 650.480Remedies; warrantor and dealer; attorney fees

Chapter 650 — Franchise Transactions

ORS 650.430 Damaged or defective vehicles

(1)

Within three days of receiving a damaged or defective recreational vehicle from the grantor, the dealer shall:

(a)

Notify the grantor in writing of the damage or defect; and

(b)(A)

Ask the grantor to permit the dealer to repair the damage or correct the defect at the expense of the grantor; or

(B)

Reject the vehicle.

(2)

A dealer may reject a vehicle if, within 10 days of receiving the dealer’s notice, the grantor does not permit a dealer to repair the damage or correct the defect at the grantor’s expense.

(3)

If a dealer rejects a vehicle, the grantor must repurchase the vehicle within 10 business days. The repurchase price shall include the costs of delivery and financing necessary to keep the vehicle in stock.

(4)

Rejection of a vehicle releases the dealer from any obligation to the grantor to pay for the vehicle.

(5)

A dealership agreement may extend the term by which a dealer must notify the grantor of a damaged or defective vehicle.

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Provenance

Version history

2026-01-01

2025 Oregon Revised Statutes — official online source