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Delaware · Through 2026-08-10 (85 Del. Laws, c. 421, 424) · Newer source version available

6 Del. C. § 4908: Termination, cancellation or nonrenewal of franchise — Dealership facilities assistance.

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Where this section sits in the code
  1. Title 6. Commerce and Trade
  2. SUBTITLE II
  3. Other Laws Relating to Commerce and Trade
  4. CHAPTER 49. Motor Vehicle Franchising Practices

In the event of a termination, cancellation or nonrenewal by the manufacturer under this chapter, except termination, cancellation or nonrenewal by the manufacturer for insolvency, license revocation, conviction of a crime or fraud by a dealer owner or failure of the dealer to conduct customary sales and service operations during business hours for 7 consecutive business days, except in circumstances beyond the direct control of the dealer, if the new motor vehicle dealer is leasing the dealership facilities from a lessor other than the manufacturer, the manufacturer shall pay the new motor vehicle dealer a sum equivalent to the rent for the unexpired term of the lease or 3 years’ rent, whichever is less, or if the new motor vehicle dealer owns the dealership facilities, the manufacturer shall pay the new motor vehicle dealer a sum equivalent to the reasonable rental value of the dealership facilities for 3 years. Nothing in this section shall relieve a lessee from the obligation to mitigate damages under the lease, nor prevent a manufacturer from discharging its obligations by negotiating a lease termination, sublease or new lease.

Collected 2026-09-05T23:02:08Z. Source file · JSON

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