{"data":{"id":"us-ok/okla.-stat.-tit.-47-47-565.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 47, § 47-565.1","heading":"Manufacturer's or distributor's prevention or refusal to","body":"honor succession to dealership by legal heir or devisee of new motor\n\nvehicle or new powersports vehicle dealer — Procedure.\n\nA. For the purposes of this section, \"designated successor\"\n\nmeans a person who the new motor vehicle dealer or new powersports\n\nvehicle dealer has designated to take over operation of the\n\ndealership or a legal heir or devisee under the will of a new motor\n\nvehicle dealer or new powersports vehicle dealer or under the laws\n\nof descent and distribution of this state.\n\nB. Notwithstanding the terms of any franchise agreement, and\n\nsubject to the following conditions contained in paragraphs 1\n\nthrough 5 of this subsection, any manufacturer or distributor who\n\nprevents or refuses to honor the succession to the operation of a\n\ndealership by a designated successor without good cause or good\n\nfaith, as defined in this section, shall be subject to the following\n\nprocedure:\n\n1. Within one hundred twenty (120) days after the death or\n\ndeparture of the new motor vehicle dealer or new powersports vehicle\n\ndealer, the manufacturer shall receive a written notice from the\n\ndealership of the designated successor who intends to become the\n\nsuccessor dealership operator. If timely notice is not received,\n\nthis paragraph shall not apply, and any succession shall be governed\n\nsolely by the terms of the franchise;\n\n2. Within thirty (30) days of receipt of the dealership's\n\ntimely written notice, the manufacturer may request, and the\n\ndesignated successor shall, within a reasonable time, provide any\n\ninformation which is reasonably necessary for the manufacturer to\n\nevaluate the designated successor dealer and dealership, including\n\napplications and financing;\n\n3. Within sixty (60) days of receipt of such information, the\n\nmanufacturer shall approve or disapprove the designated successor\n\ndealer, and in case of disapproval shall communicate in writing such\n\ndisapproval and grounds for disapproval to the dealership;\n\n4. Failure of the manufacturer to act in a timely manner with\n\nrespect to any time period described above shall constitute a waiver\n\nof the manufacturer's right to disapprove the proposed succession;\n\nand\n\n5. Within ten (10) days of the dealership's receipt of the\n\nmanufacturer's notice of disapproval, the dealership may file a\n\nprotest of the manufacturer's decision with the Oklahoma New Motor\n\nVehicle Commission and request a hearing. Such hearing shall be\n\nheard in a substantially similar manner as provided by Section 566\n\nof this title, except that the Commission shall render a final\n\ndecision within sixty (60) days of the filing of the protest. The\n\nmanufacturer shall have the burden of proof to show that its\n\ndisapproval was for a good cause and in good faith. A denial shall\n\nnot be for good cause and in good faith unless the factory\n\nestablishes that the designated successor is not of good moral\n\ncharacter or fails to meet the written, reasonable, and uniformly\n\napplied requirements of the manufacturer or distributor relating to\n\nfinancial qualifications, general business experience, and other\n\nrequirements relating to prospective franchisees. However, a\n\ndesignated successor who is a family member and who is of good moral\n\ncharacter in accordance with reasonable factory qualifications and\n\nmeets the factory's financial qualifications may rely on controlling\n\nexecutive management that is of good moral character and meets the\n\nfactory's qualifications for general business experience. Any\n\ndenial of the designated successor based upon a failure to agree to\n\nterms other than those contained in the existing franchise\n\nagreement, related addendums and agreements, and any written notice\n\nprovided to the existing dealer prior to the manufacturer's or\n\ndistributor's receipt of any written notice from the existing dealer\n\nof the proposed transfer shall not be considered good cause for such\nto agree to\n\nterms other than those contained in the existing franchise\n\nagreement, related addendums and agreements, and any written notice\n\nprovided to the existing dealer prior to the manufacturer's or\n\ndistributor's receipt of any written notice from the existing dealer\n\nof the proposed transfer shall not be considered good cause for such\n\ndenial. However, any proposed change to the franchise pursuant to\n\nwritten notice from the manufacturer or distributor, to be valid,\n\nmust be in compliance with existing law. The disapproval by the\n\nmanufacturer shall be final if the dealership fails to file a timely\n\nprotest of the disapproval. In the event that the Commission finds\n\nthat the manufacturer's disapproval was not made for good cause,\n\nthen it shall issue a final order requiring the manufacturer to\n\nhonor the successor designated in the notice sent by the dealership.\n\nNotwithstanding anything to the contrary in this section, a new\n\nmotor vehicle or new powersports vehicle dealer may designate any\n\nperson as successor by filing a written instrument pursuant to the\n\nfranchise with the manufacturer during the new motor vehicle or new\n\npowersports vehicle dealer's lifetime. In such a case, the written\n\ninstrument and franchise shall govern the dealership succession.\n\nThe suspension, revocation, or refusal to issue or renew a\n\nlicense or the imposition of any other penalty by the Commission\n\nshall be in addition to any penalty which might be imposed upon any\n\nlicensee upon judgment or conviction in a court of competent\n\njurisdiction for any violation of the provisions of Sections 561\n\nthrough 567, 572, 578.1, 579, and 579.1 of this title.","path":["OK Code","Title 47"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os47.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"e0723bae9e99769a40c46613e3eafabf6201720c94eac99f70923efe7355fa6b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-47-47-565","next":"us-ok/okla.-stat.-tit.-47-47-565.2"},"notice":"GroundRules: Original legal text. Not legal advice."}