{"data":{"id":"us-ok/okla.-stat.-tit.-47-47-565v1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 47, § 47-565v1","heading":"Denial, revocation or suspension of license - Right of","body":"first refusal.\n\nA. The Oklahoma New Motor Vehicle Commission may deny an\n\napplication for a license, revoke or suspend a license, or impose a\n\nfine against any person or entity, not to exceed Ten Thousand\n\nDollars ($10,000.00) per occurrence, that violates any provision of\n\nSections 561 through 567, 572, 578.1, 579, and 579.1 of this title\n\nor for any of the following reasons:\n\n1. On satisfactory proof of unfitness of the applicant in any\n\napplication for any license under the provisions of Section 561 et\n\nseq. of this title;\n\n2. For any material misstatement made by an applicant in any\n\napplication for any license under the provisions of Section 561 et\n\nseq. of this title;\n\n3. For any failure to comply with any provision of Section 561\n\net seq. of this title or any rule promulgated by the Commission\n\nunder authority vested in it by Section 561 et seq. of this title;\n\n4. A change of condition after license is granted resulting in\n\nfailure to maintain the qualifications for license;\n\n5. Being a new motor vehicle dealer who:\n\na. has required a purchaser of a new motor vehicle, as a\n\ncondition of sale and delivery thereof, to also\n\npurchase special features, appliances, accessories, or\n\nequipment not desired or requested by the purchaser\n\nand installed by the new motor vehicle dealer,\n\nb. uses any false or misleading advertising in connection\n\nwith business as a new motor vehicle dealer,\n\nc. has committed any unlawful act which resulted in the\n\nrevocation of any similar license in another state,\n\nd. has failed or refused to perform any written agreement\n\nwith any retail buyer involving the sale of a motor\n\nvehicle,\n\ne. has been convicted of a felony crime that\n\nsubstantially relates to the occupation of a new motor\n\nvehicle dealer and poses a reasonable threat to public\n\nsafety,\n\nf. has committed a fraudulent act in selling, purchasing,\n\nor otherwise dealing in new motor vehicles or has\n\nmisrepresented the terms and conditions of a sale,\n\npurchase or contract for sale or purchase of a new\n\nmotor vehicle or any interest therein including an\n\noption to purchase such vehicle,\n\ng. has failed to meet or maintain the conditions and\n\nrequirements necessary to qualify for the issuance of\n\na license, or\n\nh. completes any sale or transaction of an extended\n\nservice contract, extended maintenance plan, or\n\nsimilar product using contract forms that do not\n\nconspicuously disclose the identity of the service\n\ncontract provider;\n\n6. Being a motor vehicle salesperson who is not employed as\n\nsuch by a licensed new motor vehicle dealer;\n\n7. Being a new motor vehicle dealer who:\n\na. does not have an established place of business,\n\nb. does not provide for a suitable repair shop separate\n\nfrom the display room with ample space to repair or\n\nrecondition one or more vehicles at the same time, and\n\nwhich is staffed with properly trained and qualified\n\nrepair technicians and is equipped with such parts,\n\ntools, and equipment as may be requisite for the\n\nservicing of motor vehicles in such a manner as to\n\nmake them comply with the safety laws of this state\n\nand to properly fulfill the dealer's or manufacturer's\n\nwarranty obligation,\n\nc. does not hold a franchise in effect with a\n\nmanufacturer or distributor of new or unused motor\n\nvehicles for the sale of the same and is not\n\nauthorized by the manufacturer or distributor to\n\nrender predelivery preparation of such vehicles sold\n\nto purchasers and to perform any authorized post-sale\n\nwork pursuant to the manufacturer's or distributor's\n\nwarranty,\n\nd. employs a person without obtaining a certificate of\n\nregistration for the person, or utilizes the services\n\nof used motor vehicle lots or dealers or other\n\nunlicensed persons in connection with the sale of new\n\nmotor vehicles,\n\ne. does not properly service a new motor vehicle before\n\ndelivery of same to the original purchaser thereof, or\n\nf. fails to order and stock a reasonable number of new\nd. employs a person without obtaining a certificate of\n\nregistration for the person, or utilizes the services\n\nof used motor vehicle lots or dealers or other\n\nunlicensed persons in connection with the sale of new\n\nmotor vehicles,\n\ne. does not properly service a new motor vehicle before\n\ndelivery of same to the original purchaser thereof, or\n\nf. fails to order and stock a reasonable number of new\n\nmotor vehicles necessary to meet consumer demand for\n\neach of the new motor vehicles included in the new\n\nmotor vehicle dealer's franchise agreement, unless the\n\nnew motor vehicles are not readily available from the\n\nmanufacturer or distributor due to limited production;\n\n8. Being a factory that has:\n\na. either induced or attempted to induce by means of\n\ncoercion or intimidation, any new motor vehicle\n\ndealer:\n\n(1) to accept delivery of any motor vehicle or\n\nvehicles, parts, or accessories therefor, or any\n\nother commodities including advertising material\n\nwhich shall not have been ordered by the new\n\nmotor vehicle dealer,\n\n(2) to order or accept delivery of any motor vehicle\n\nwith special features, appliances, accessories,\n\nor equipment not included in the list price of\n\nthe motor vehicles as publicly advertised by the\n\nmanufacturer thereof, or\n\n(3) to order or accept delivery of any parts,\n\naccessories, equipment, machinery, tools,\n\nappliances, or any commodity whatsoever,\n\nb. induced under threat or discrimination by the\n\nwithholding from delivery to a new motor vehicle\n\ndealer certain models of motor vehicles, changing or\n\namending unilaterally the new motor vehicle dealer's\n\nallotment of motor vehicles, and/or withholding and\n\ndelaying delivery of the vehicles out of the ordinary\n\ncourse of business, in order to induce by such\n\ncoercion any new motor vehicle dealer to participate\n\nor contribute to any local or national advertising\n\nfund controlled directly or indirectly by the factory\n\nor for any other purposes such as contest,\n\n\"giveaways\", or other so-called sales promotional\n\ndevices, and/or change of quotas in any sales contest;\n\nor has required new motor vehicle dealers, as a\n\ncondition to receiving their vehicle allotment, to\n\norder a certain percentage of the vehicles with\n\noptional equipment not specified by the new motor\n\nvehicle dealer; however, nothing in this section shall\n\nprohibit a factory from supporting an advertising\n\nassociation which is open to all new motor vehicle\n\ndealers on the same basis,\n\nc. used a performance standard, sales objective, or\n\nprogram for measuring dealer performance that may have\n\na material effect on a right of the dealer to vehicle\n\nallocation; or payment under any incentive or\n\nreimbursement program that is unfair, unreasonable,\n\ninequitable, and not based on accurate information,\n\nd. used a performance standard for measuring sales or\n\nservice performance which results in penalizing any\n\nnew motor vehicle dealer under the terms of the\n\nfranchise agreement which:\n\n(1) is unfair, unreasonable, arbitrary, or\n\ninequitable,\n\n(2) does not consider the relevant and material local\n\nand state or regional criteria, prevailing\n\neconomic conditions affecting the sales or\n\nservice performance of a vehicle dealer, and any\n\nrelevant and material data and facts presented by\n\nthe dealer in writing within thirty (30) days of\n\nthe written notice of the manufacturer to the\n\ndealer of its intention to cancel, terminate, or\n\nnot renew the dealer's franchise agreement, and\nmaterial local\n\nand state or regional criteria, prevailing\n\neconomic conditions affecting the sales or\n\nservice performance of a vehicle dealer, and any\n\nrelevant and material data and facts presented by\n\nthe dealer in writing within thirty (30) days of\n\nthe written notice of the manufacturer to the\n\ndealer of its intention to cancel, terminate, or\n\nnot renew the dealer's franchise agreement, and\n\n(3) does not consider the actual vehicle allocation\n\noffered or otherwise made available to the dealer\n\nby the manufacturer or distributor, as well as\n\nthe dealer's inventory levels relevant to achieve\n\nany minimum performance standards to which the\n\nmanufacturer or distributor holds the dealer\n\naccountable,\n\ne. failed or refused to sell, or offer for sale, new\n\nmotor vehicles to all of its authorized same line-make\n\nfranchised new motor vehicle dealers at the same price\n\nfor a comparably equipped motor vehicle, on the same\n\nterms, with no differential in functionally available\n\ndiscount, allowance, credit, or bonus, except as\n\nprovided in subparagraph e of paragraph 9 of this\n\nsubsection,\n\nf. failed to provide reasonable compensation to a new\n\nmotor vehicle dealer substantially equivalent to the\n\nactual cost of providing a manufacturer required\n\nloaner or rental vehicle to any consumer who is having\n\na vehicle serviced at the dealership. For purposes of\n\nthis paragraph, actual cost is the average cost in the\n\nnew motor vehicle dealer's region for the rental of a\n\nsubstantially similar make and model as the vehicle\n\nbeing serviced, or\n\ng. failed to make available to its new motor vehicle\n\ndealers a fair and proportional share of all new\n\nvehicles distributed to same line-make dealers in this\n\nstate, subject to the same reasonable terms, including\n\nany vehicles distributed from a common new vehicle\n\ninventory pool outside of the factory's ordinary\n\nallocation process such as any vehicles the factory\n\nreserves to distribute on a discretionary basis;\n\n9. Being a factory that:\n\na. has attempted to coerce or has coerced any new motor\n\nvehicle dealer to enter into any agreement or to\n\ncancel any agreement; has failed to act in good faith\n\nand in a fair, equitable, and nondiscriminatory\n\nmanner; has directly or indirectly coerced,\n\nintimidated, threatened, or restrained any new motor\n\nvehicle dealer; has acted dishonestly; or has failed\n\nto act in accordance with the reasonable standards of\n\nfair dealing,\n\nb. has failed to compensate its dealers for the work and\n\nservices they are required to perform in connection\n\nwith the dealer's delivery and preparation obligations\n\naccording to the agreements on file with the\n\nCommission which must be found by the Commission to be\n\nreasonable, or has failed to adequately and fairly\n\ncompensate its dealers for labor, parts, and other\n\nexpenses incurred by the dealer to perform under and\n\ncomply with manufacturer's warranty agreements and\n\nrecall repairs which shall include diagnostic work as\n\napplicable and assistance requested by a consumer\n\nwhose vehicle was subjected to an over-the-air or\n\nremote change, repair, or update to any part, system,\n\naccessory, or function by the manufacturer and\n\nperformed by the dealer in order to satisfy the\n\nconsumer. Time allowances for the diagnosis and\n\nperformance of repair work shall be reasonable and\n\nadequate for the work to be performed. Adequate and\n\nfair compensation, which under this provision shall be\n\nno less than the rates customarily charged for retail\n\nconsumer repairs as calculated herein, for parts and\n\nlabor for warranty and recall repairs shall, at the\n\noption of the new motor vehicle dealer, be established\n\nby the new motor vehicle dealer submitting to the\n\nmanufacturer or distributor one hundred sequential\n\nnonwarranty consumer-paid service repair orders which\n\ncontain warranty-like repairs, or ninety (90)\n\nconsecutive days of nonwarranty consumer-paid service\nalculated herein, for parts and\n\nlabor for warranty and recall repairs shall, at the\n\noption of the new motor vehicle dealer, be established\n\nby the new motor vehicle dealer submitting to the\n\nmanufacturer or distributor one hundred sequential\n\nnonwarranty consumer-paid service repair orders which\n\ncontain warranty-like repairs, or ninety (90)\n\nconsecutive days of nonwarranty consumer-paid service\n\nrepair orders which contain warranty-like repairs,\n\nwhichever is less, covering repairs made no more than\n\none hundred eighty (180) days before the submission\n\nand declaring the average percentage labor rate and/or\n\nmarkup rate. A new motor vehicle dealer may not\n\nsubmit a request to establish its retail rates more\n\nthan once in a twelve-month period. That request may\n\nestablish a parts markup rate, labor rate, or both.\n\nThe new motor vehicle dealer shall calculate its\n\nretail parts rate by determining the total charges for\n\nparts from the qualified repair orders submitted,\n\ndividing that amount by the new motor vehicle dealer's\n\ntotal cost of the purchase of those parts, subtracting\n\none (1), and multiplying by one hundred (100) to\n\nproduce a percentage. The new motor vehicle dealer\n\nshall calculate its retail labor rate by dividing the\n\namount of the new motor vehicle dealer's total labor\n\nsales from the qualified repair orders by the total\n\nlabor hours charged for those sales. When submitting\n\nrepair orders to establish a retail parts and labor\n\nrate, a new motor vehicle dealer need not include\n\nrepairs for:\n\n(1) routine maintenance including but not limited to\n\nthe replacement of bulbs, fluids, filters,\n\nbatteries, and belts that are not provided in the\n\ncourse of and related to a repair,\n\n(2) factory special events, specials, or promotional\n\ndiscounts for retail consumer repairs,\n\n(3) parts sold or repairs performed at wholesale,\n\n(4) factory-approved goodwill or policy repairs or\n\nreplacements,\n\n(5) repairs with aftermarket parts, when calculating\n\nthe retail parts rate but not the retail labor\n\nrate,\n\n(6) repairs on aftermarket parts,\n\n(7) replacement of or work on tires including front-\n\nend alignments and wheel or tire rotations,\n\n(8) repairs of motor vehicles owned by the new motor\n\nvehicle dealer or employee thereof at the time of\n\nthe repair,\n\n(9) vehicle reconditioning, or\n\n(10) items that do not have individual part numbers\n\nincluding, but not limited to, nuts, bolts, and\n\nfasteners.\n\nA manufacturer or distributor may, not later than\n\nforty-five (45) days after submission, rebut that\n\ndeclared retail parts and labor rate in writing by\n\nreasonably substantiating that the rate is not\n\naccurate or is incomplete pursuant to the provisions\n\nof this section. If the manufacturer or distributor\n\ndetermines the set of repair orders submitted by the\n\nnew motor vehicle dealer pursuant to this section for\n\na retail labor rate or retail parts markup rate is\n\nsubstantially higher than the new motor vehicle\n\ndealer's current warranty rates, the manufacturer or\n\ndistributor may request, in writing, within forty-five\n\n(45) days after the manufacturer's or distributor's\n\nreceipt of the new motor vehicle dealer's initial\n\nsubmission, all repair orders closed within the period\n\nof thirty (30) days immediately preceding, or thirty\nretail parts markup rate is\n\nsubstantially higher than the new motor vehicle\n\ndealer's current warranty rates, the manufacturer or\n\ndistributor may request, in writing, within forty-five\n\n(45) days after the manufacturer's or distributor's\n\nreceipt of the new motor vehicle dealer's initial\n\nsubmission, all repair orders closed within the period\n\nof thirty (30) days immediately preceding, or thirty\n\n(30) days immediately following, the set of repair\n\norders initially submitted by the new motor vehicle\n\ndealer. All time periods under this section shall be\n\nsuspended until the supplemental repair orders are\n\nprovided. If the manufacturer or distributor requests\n\nsupplemental repair orders, the manufacturer or\n\ndistributor may, within thirty (30) days after\n\nreceiving the supplemental repair orders and in\n\naccordance with the formula described in this\n\nsubsection, calculate a proposed adjusted retail labor\n\nrate or retail parts markup rate, as applicable, based\n\nupon any set of the qualified repair orders submitted\n\nby the franchisee and following the formula set forth\n\nherein to establish the rate. The retail labor and\n\nparts rates shall go into effect thirty (30) days\n\nfollowing the approval by the manufacturer or\n\ndistributor. If the declared rate is rebutted, the\n\nmanufacturer or distributor shall provide written\n\nnotice stating the reasons for the rebuttal, an\n\nexplanation of the reasons for the rebuttal, and a\n\ncopy of all calculations used by the franchisor in\n\ndetermining the manufacturer or distributor's position\n\nand propose an adjustment in writing of the average\n\npercentage markup or labor rate based on that rebuttal\n\nnot later than forty-five (45) days after submission.\n\nIf the new motor vehicle dealer does not agree with\n\nthe proposed average percentage markup or labor rate,\n\nthe new motor vehicle dealer may file a protest with\n\nthe Commission not later than thirty (30) days after\n\nreceipt of that proposal by the manufacturer or\n\ndistributor. In the event a protest is filed, the\n\nmanufacturer or distributor shall have the burden of\n\nproof to establish the new motor vehicle dealer's\n\nsubmitted parts markup rate or labor rate was\n\ninaccurate or not complete pursuant to the provisions\n\nof this section. A manufacturer or distributor may\n\nnot retaliate against any new motor vehicle dealer\n\nseeking to exercise its rights under this section. A\n\nmanufacturer or distributor may require a dealer to\n\nsubmit repair orders in accordance with this section\n\nin order to validate the reasonableness of a dealer's\n\nretail rate for parts or labor not more often than\n\nonce every twelve (12) months. A manufacturer or\n\ndistributor may not otherwise recover its costs from\n\nnew motor vehicle dealers within this state including\n\na surcharge imposed on a new motor vehicle dealer\n\nsolely intended to recover the cost of reimbursing a\n\nnew motor vehicle dealer for parts and labor pursuant\n\nto this section; provided, a manufacturer or\n\ndistributor shall not be prohibited from increasing\n\nprices for vehicles or parts in the normal course of\n\nbusiness or from auditing and charging back claims in\n\naccordance with this section. All claims made by\n\ndealers for compensation for delivery, preparation,\n\nwarranty, or recall repair work shall be paid within\n\nthirty (30) days after approval and shall be approved\n\nor disapproved within thirty (30) days after receipt.\n\nWhen any claim is disapproved, the dealer shall be\n\nnotified in writing of the grounds for disapproval.\n\nThe dealer's delivery, preparation, and warranty\n\nobligations as filed with the Commission shall\n\nconstitute the dealer's sole responsibility for\n\nproduct liability as between the dealer and\n\nmanufacturer. A factory may reasonably and\n\nperiodically audit a new motor vehicle dealer to\n\ndetermine the validity of paid claims for new motor\nshall be\n\nnotified in writing of the grounds for disapproval.\n\nThe dealer's delivery, preparation, and warranty\n\nobligations as filed with the Commission shall\n\nconstitute the dealer's sole responsibility for\n\nproduct liability as between the dealer and\n\nmanufacturer. A factory may reasonably and\n\nperiodically audit a new motor vehicle dealer to\n\ndetermine the validity of paid claims for new motor\n\nvehicle dealer compensation or any charge-backs for\n\nwarranty parts or service compensation. Except in\n\ncases of suspected fraud, audits of warranty payments\n\nshall only be for the one-year period immediately\n\nfollowing the date of the payment. A manufacturer\n\nshall reserve the right to reasonable, periodic audits\n\nto determine the validity of paid claims for dealer\n\ncompensation or any charge-backs for consumer or\n\ndealer incentives. Except in cases of suspected\n\nfraud, audits of incentive payments shall only be for\n\na one-year period immediately following the date of\n\nthe payment. A factory shall not deny a claim or\n\ncharge a new motor vehicle dealer back subsequent to\n\nthe payment of the claim unless the factory can show\n\nthat the claim was false or fraudulent or that the new\n\nmotor vehicle dealer failed to reasonably substantiate\n\nthe claim by the written reasonable procedures of the\n\nfactory. A factory shall not deny a claim or\n\nimplement a charge-back against a new motor vehicle\n\ndealer after payment of a claim in the event a\n\npurchaser of a new vehicle that is the subject of a\n\nclaim fails to comply with titling or registration\n\nlaws of this state and is not prevented from\n\ncompliance by any action of the new motor vehicle\n\ndealer; provided, that the factory may require the new\n\nmotor vehicle dealer to provide, within thirty (30)\n\ndays of notice of charge-back, withholding of payment,\n\nor denial of claim, the documentation to demonstrate\n\nthe vehicle sale, delivery, and customer qualification\n\nfor an incentive as reported, including consumer name\n\nand address and written attestation signed by the\n\ndealer operator or general manager stating the\n\nconsumer was not on the export control list and the\n\ndealer did not know or have reason to know the vehicle\n\nwas being exported or resold.\n\nThe factory shall provide written notice to a dealer\n\nof a proposed charge-back that is the result of an\n\naudit along with the specific audit results and\n\nproposed charge-back amount. A dealer that receives\n\nnotice of a proposed charge-back pursuant to a\n\nfactory's audit has the right to file a protest with\n\nthe Commission within thirty (30) days after receipt\n\nof the notice of the charge-back or audit results,\n\nwhichever is later. The factory is prohibited from\n\nimplementing the charge-back or debiting the dealer's\n\naccount until either the time frame for filing a\n\nprotest has passed or a final adjudication is rendered\n\nby the Commission, whichever is later, unless the\n\ndealer has agreed to the charge-back or charge-backs,\n\nc. fails to compensate the new motor vehicle dealer for a\n\nused motor vehicle:\n\n(1) that is of the same make and model manufactured,\n\nimported, or distributed by the factory and is a\n\nline-make that the new motor vehicle dealer is\n\nfranchised to sell or on which the new motor\n\nvehicle dealer is authorized to perform recall\n\nrepairs,\n\n(2) that is subject to a stop-sale or do-not-drive\n\norder issued by the factory or an authorized\n\ngovernmental agency,\n\n(3) that is held by the new motor vehicle dealer in\n\nthe dealer's inventory at the time the stop-sale\n\nor do-not-drive order is issued or that is taken\n\nby the new motor vehicle dealer into the dealer's\n\ninventory after the recall notice as a result of\n\na retail consumer trade-in or a lease return to\n\nthe dealer inventory in accordance with an\n\napplicable lease contract,\nzed\n\ngovernmental agency,\n\n(3) that is held by the new motor vehicle dealer in\n\nthe dealer's inventory at the time the stop-sale\n\nor do-not-drive order is issued or that is taken\n\nby the new motor vehicle dealer into the dealer's\n\ninventory after the recall notice as a result of\n\na retail consumer trade-in or a lease return to\n\nthe dealer inventory in accordance with an\n\napplicable lease contract,\n\n(4) that cannot be repaired due to the\n\nunavailability, within thirty (30) days after\n\nissuance of the stop-sale or do-not-drive order,\n\nof a remedy or parts necessary for the new motor\n\nvehicle dealer to make the recall repair, and\n\n(5) that is not at least in the prorated amount of\n\none percent (1.00%) of the value of the vehicle\n\nper month beginning on the date that is thirty\n\n(30) days after the date on which the stop-sale\n\norder was provided to the new motor vehicle\n\ndealer until the earlier of either of the\n\nfollowing:\n\n(a) the date the recall remedy or parts are made\n\navailable, or\n\n(b) the date the new motor vehicle dealer sells,\n\ntrades, or otherwise disposes of the\n\naffected used motor vehicle.\n\nFor the purposes of division (5) of this subparagraph,\n\nthe value of a used vehicle shall be the average Black\n\nBook value for the year, make, and model of the\n\nrecalled vehicle. A factory may direct the manner and\n\nmethod in which a new motor vehicle dealer must\n\ndemonstrate the inventory status of an affected used\n\nmotor vehicle to determine eligibility under this\n\nsubparagraph; provided, that the manner and method may\n\nnot be unduly burdensome and may not require\n\ninformation that is unduly burdensome to provide. All\n\nreimbursement claims made by new motor vehicle dealers\n\npursuant to this section for recall remedies or\n\nrepairs, or for compensation where no part or repair\n\nis reasonably available and the vehicle is subject to\n\na stop-sale or do-not-drive order, shall be subject to\n\nthe same limitations and requirements as a warranty\n\nreimbursement claim made under subparagraph b of this\n\nparagraph. In the alternative, a manufacturer may\n\ncompensate its franchised new motor vehicle dealers\n\nunder a national recall compensation program;\n\nprovided, the compensation under the program is equal\n\nto or greater than that provided under division (5) of\n\nthis subparagraph, or as the manufacturer and new\n\nmotor vehicle dealer otherwise agree. Nothing in this\n\nsection shall require a factory to provide total\n\ncompensation to a new motor vehicle dealer which would\n\nexceed the total average Black Book value of the\n\naffected used motor vehicle as originally determined\n\nunder division (5) of this subparagraph. Any remedy\n\nprovided to a new motor vehicle dealer under this\n\nsubparagraph is exclusive and may not be combined with\n\nany other state or federal compensation remedy,\n\nd. unreasonably fails or refuses to offer to its same\n\nline-make franchised dealers a reasonable supply and\n\nmix of all models manufactured for that line-make, or\n\nunreasonably requires a dealer to pay any extra fee,\n\npurchase unreasonable advertising displays or other\n\nmaterials, or enter into a separate agreement which\n\nadversely alters the rights or obligations contained\n\nwithin the new motor vehicle dealer's existing\n\nfranchise agreement or which waives any right of the\n\nnew motor vehicle dealer as protected by Section 561\n\net seq. of this title, or remodel, renovate, or\n\nrecondition the new motor vehicle dealer's existing\n\nfacilities as a prerequisite to receiving a model or\n\nseries of vehicles, except as may be necessary to sell\n\nor service the model or series of vehicles as provided\n\nby subparagraph e of this paragraph. It shall be a\n\nviolation of this section for new vehicle allocation\n\nto be withheld subject to any requirement to purchase\n\nor sell any number of used or off-lease vehicles. The\n\nfailure to deliver any such new motor vehicle shall\neceiving a model or\n\nseries of vehicles, except as may be necessary to sell\n\nor service the model or series of vehicles as provided\n\nby subparagraph e of this paragraph. It shall be a\n\nviolation of this section for new vehicle allocation\n\nto be withheld subject to any requirement to purchase\n\nor sell any number of used or off-lease vehicles. The\n\nfailure to deliver any such new motor vehicle shall\n\nnot be considered a violation of the section if the\n\nfailure is not arbitrary or is due to lack of\n\nmanufacturing capacity or to a strike or labor\n\ndifficulty, a shortage of materials, a freight\n\nembargo, or other cause over which the manufacturer\n\nhas no control. However, this subparagraph shall not\n\napply to recreational vehicles, limited production\n\nmodel vehicles, a vehicle not advertised by the\n\nfactory for sale in this state, vehicles that are\n\nsubject to allocation affected by federal\n\nenvironmental laws or environmental laws of this\n\nstate, or vehicles allocated in response to an\n\nunforeseen event or circumstance,\n\ne. except as necessary to comply with a health or safety\n\nlaw, or to comply with a technology requirement which\n\nis necessary to sell or service a motor vehicle that\n\nthe franchised new motor vehicle dealer is authorized\n\nor licensed by the franchisor to sell or service,\n\nrequires a new motor vehicle dealer to construct a new\n\nfacility or substantially renovate the new motor\n\nvehicle dealer's existing facility unless the facility\n\nconstruction or renovation is justified by the\n\neconomic conditions existing at the time, as well as\n\nthe reasonably foreseeable projections, in the new\n\nmotor vehicle dealer's market and in the automotive\n\nindustry. However, this subparagraph shall not apply\n\nif the new motor vehicle dealer voluntarily agrees to\n\nfacility construction or renovation in exchange for\n\nmoney, credit, allowance, reimbursement, or additional\n\nvehicle allocation to a new motor vehicle dealer from\n\nthe factory to compensate the new motor vehicle dealer\n\nfor the cost of, or a portion of the cost of, the\n\nfacility construction or renovation. Except as\n\nnecessary to comply with a health or safety law, or to\n\ncomply with a technology or safety requirement which\n\nis necessary to sell or service a motor vehicle that\n\nthe franchised new motor vehicle dealer is authorized\n\nor licensed by the franchisor to sell or service, a\n\nnew motor vehicle dealer which completes a facility\n\nconstruction or renovation pursuant to factory\n\nrequirements shall not be required to construct a new\n\nfacility or renovate the existing facility if the same\n\narea of the facility or premises has been constructed\n\nor substantially altered within the last ten (10)\n\nyears and the construction or alteration was approved\n\nby the manufacturer as a part of a facility upgrade\n\nprogram, standard, or policy. For purposes of this\n\nsubparagraph, \"substantially altered\" means to perform\n\nan alteration that substantially impacts the\n\narchitectural features, characteristics, or integrity\n\nof a structure or lot. The term shall not include\n\nroutine maintenance reasonably necessary to maintain a\n\ndealership in attractive condition. If a facility\n\nupgrade program, standard, or policy under which the\n\ndealer completed a facility construction or\n\nsubstantial alteration does not contain a specific\n\ntime period during which the manufacturer or\n\ndistributor shall provide payments or benefits to a\n\nparticipating dealer, or the time frame specified\n\nunder the program is reduced or canceled prematurely\n\nin the unilateral discretion of the manufacturer or\n\ndistributor, the manufacturer or distributor shall not\n\ndeny the participating dealer any payment or benefit\n\nunder the terms of the program, standard, or policy as\n\nit existed when the dealer began to perform under the\n\nprogram, standard, or policy for the balance of the\n\nten-year period, regardless of whether the\nduced or canceled prematurely\n\nin the unilateral discretion of the manufacturer or\n\ndistributor, the manufacturer or distributor shall not\n\ndeny the participating dealer any payment or benefit\n\nunder the terms of the program, standard, or policy as\n\nit existed when the dealer began to perform under the\n\nprogram, standard, or policy for the balance of the\n\nten-year period, regardless of whether the\n\nmanufacturer's or distributor's program, standard, or\n\npolicy has been changed or canceled, unless the\n\nmanufacturer and dealer agree, in writing, to the\n\nchange in payment or benefit. During the ten-year\n\nperiod following facility construction or substantial\n\nalteration, the manufacturer shall not fail to make\n\navailable to the dealer a fair and proportionate share\n\nof all new vehicles distributed to dealers of the same\n\nline-make in this state, subject to the same\n\nreasonable terms, including vehicles distributed from\n\na common new vehicle inventory pool outside of the\n\nfactory's ordinary allocation process, such as any\n\nvehicles the factory reserves to distribute on a\n\ndiscretionary basis,\n\nf. requires a new motor vehicle dealer to establish an\n\nexclusive facility or to change the location of the\n\ndealership, unless supported by reasonable business,\n\nmarket, and economic considerations; provided, that\n\nthis section shall not restrict the terms of any\n\nagreement for such exclusive facility voluntarily\n\nentered into and supported by valuable consideration\n\nseparate from the new motor vehicle dealer's right to\n\nsell and service motor vehicles for the franchisor.\n\nIf a dealer is required by the manufacturer or\n\ndistributor to change an existing, previously approved\n\nlocation of the dealership and has not sold its\n\nexisting dealership facility and real estate within\n\nthe later of one hundred eighty (180) days of listing\n\nthe property for sale or ninety (90) days after the\n\nfacility relocation, then, upon the written request of\n\nthe dealer, the manufacturer or distributor shall\n\npurchase the dealer's existing dealership facility and\n\nreal estate as if the new motor vehicle dealership\n\ncontinues to operate on the property. If the factory\n\nand dealer cannot agree on the value of the dealership\n\nfacilities and real estate, then the factory and\n\ndealer shall utilize the process described in\n\nparagraph 6 of subsection G of Section 565.2 of this\n\ntitle. If a manufacturer or distributor purchases a\n\ndealership facility and real estate, then it shall be\n\nentitled to sole ownership, possession, use, and\n\ncontrol of any items, buildings, or property that were\n\nincluded in the contract to purchase,\n\ng. requires a new motor vehicle dealer to enter into a\n\nsite-control agreement covering any or all of the new\n\nmotor vehicle dealer's facilities or premises;\n\nprovided, that this section shall not restrict the\n\nterms of any site-control agreement voluntarily\n\nentered into and supported by valuable consideration\n\nseparate from the new motor vehicle dealer's right to\n\nsell and service motor vehicles for the franchisor.\n\nNotwithstanding the foregoing or the terms of any\n\nsite-control agreement, a site-control agreement\n\nautomatically extinguishes if all of the factory's\n\nfranchises that operated from the location that are\n\nthe subject of the site-control agreement are\n\nterminated by the factory as part of the\n\ndiscontinuance of a product line,\n\nh. refuses to pay, or claims reimbursement from, a new\n\nmotor vehicle dealer for sales, incentives, or other\n\npayments related to a motor vehicle sold by the new\n\nmotor vehicle dealer because the purchaser of the\n\nmotor vehicle exported or resold the motor vehicle in\n\nviolation of the policy of the factory unless the\n\nfactory can show that, at the time of the sale, the\n\nnew motor vehicle dealer knew or reasonably should\n\nhave known of the purchaser's intention to export or\nmotor vehicle sold by the new\n\nmotor vehicle dealer because the purchaser of the\n\nmotor vehicle exported or resold the motor vehicle in\n\nviolation of the policy of the factory unless the\n\nfactory can show that, at the time of the sale, the\n\nnew motor vehicle dealer knew or reasonably should\n\nhave known of the purchaser's intention to export or\n\nresell the motor vehicle. There is a rebuttable\n\npresumption that the new motor vehicle dealer did not\n\nknow or could not have known that the vehicle would be\n\nexported if the vehicle is titled and registered in\n\nany state of the United States, or\n\ni. (1) notwithstanding the terms of a franchise\n\nagreement or other agreement except as provided\n\nby this subsection, requires a new motor vehicle\n\ndealer to purchase or utilize goods or services,\n\nor contract with any vendor, identified, selected\n\nor designated by the factory for the:\n\n(a) operation of the dealership including\n\nelectronic services such as websites, data\n\nmanagement or storage systems, digital\n\nretail platforms, software, or other digital\n\nservices or platforms, or\n\n(b) construction, renovation, or improvement of\n\nthe new motor vehicle dealer's facility if\n\ngoods or services available from a vendor\n\nthat the new motor vehicle dealer chooses,\n\nare of substantially similar quality,\n\nfunction, and design, and comply with all\n\napplicable laws; provided, however, that\n\nsuch goods are not subject to the factory's\n\nintellectual property or trademark rights\n\nand the new motor vehicle dealer has\n\nreceived the factory's approval, which\n\napproval may not be unreasonably withheld.\n\nNothing in this subparagraph may be\n\nconstrued to allow a new motor vehicle\n\ndealer to impair or eliminate a factory's\n\nintellectual property, trademark rights, or\n\ntrade dress usage guidelines. Nothing in\n\nthis subdivision or subdivision a of this\n\ndivision prohibits the enforcement of a\n\nvoluntary agreement between the factory and\n\nthe new motor vehicle dealer where separate\n\nand valuable consideration has been offered\n\nand accepted. It is a violation of this\n\nsubdivision or subdivision a of this\n\ndivision for a factory, or any entity that\n\nacts on behalf of, a factory to coerce a new\n\nmotor vehicle dealer to purchase or utilize\n\ncertain goods or services by the withholding\n\nvehicle allocation the new motor vehicle\n\ndealer is otherwise eligible to receive, and\n\n(2) for the purposes of this subparagraph, \"goods and\n\nservices\" do not include:\n\n(a) moveable displays, brochures, promotional\n\nmaterials, or electronic or digital media\n\ncontaining material subject to the\n\nintellectual property rights of a factory or\n\nparts to be used in repairs under warranty\n\nobligations of a factory, or\ntion the new motor vehicle\n\ndealer is otherwise eligible to receive, and\n\n(2) for the purposes of this subparagraph, \"goods and\n\nservices\" do not include:\n\n(a) moveable displays, brochures, promotional\n\nmaterials, or electronic or digital media\n\ncontaining material subject to the\n\nintellectual property rights of a factory or\n\nparts to be used in repairs under warranty\n\nobligations of a factory, or\n\n(b) special tools or training required by the\n\nfactory to perform warranty or recall\n\nrepairs;\n\n10. Being a factory that:\n\na. establishes a system of motor vehicle allocation or\n\ndistribution which is unfair, inequitable, or\n\nunreasonably discriminatory. A manufacturer and\n\ndistributor shall maintain for three (3) years records\n\nthat describe its methods or formula of allocation and\n\ndistribution of its motor vehicles and records of its\n\nactual allocation and distribution of motor vehicles\n\nto its motor vehicle dealers. Upon the written\n\nrequest of any new motor vehicle dealer franchised by\n\nthe manufacturer or distributor, received by the\n\nmanufacturer or distributor within thirty (30) days of\n\nthe manufacturer's or distributor's written notice to\n\nthe dealer of its intention to cancel or terminate, or\n\nwritten notice from the manufacturer or distributor of\n\na sales performance deficiency requiring the dealer to\n\ntake action to cure the alleged performance\n\ndeficiency, a manufacturer or distributor shall\n\ndisclose in writing to the new motor vehicle dealer\n\nthe basis upon which new motor vehicles are allocated,\n\nscheduled, and delivered, by vehicle model, to new\n\nmotor vehicle dealers of the same line-make for that\n\nmanufacturer or distributor for the prior three (3)\n\nyears, and the basis upon which the current allocation\n\nor distribution is being made or will be made based on\n\nexisting information to such dealer, or\n\nb. changes an established plan or system of motor vehicle\n\ndistribution. A new motor vehicle dealer franchise\n\nagreement shall continue in full force and operation\n\nnotwithstanding a change, in whole or in part, of an\n\nestablished plan or system of distribution of the\n\nmotor vehicles offered or previously offered for sale\n\nunder the franchise agreement. The appointment of a\n\nnew importer or distributor for motor vehicles offered\n\nfor sale under the franchise agreement shall be deemed\n\nto be a change of an established plan or system of\n\ndistribution. The discontinuation of a line-make\n\nshall not be deemed to be a change of an established\n\nplan or system of motor vehicle distribution. The\n\ncreation of a line-make shall not be deemed to be a\n\nchange of an established plan or system of motor\n\nvehicle distribution as long as the new line-make is\n\nnot selling the same, or substantially the same\n\nvehicle or vehicles previously sold through another\n\nline-make by new motor vehicle dealers with an active\n\nfranchise agreement for the other line-make in the\n\nstate if such new motor vehicle dealers are no longer\n\nauthorized to sell the comparable vehicle previously\n\nsold through their line-make. Changing a vehicle's\n\npowertrain is not sufficient to show it is\n\nsubstantially different. Upon the occurrence of such\n\nchange, the manufacturer or distributor shall be\n\nprohibited from obtaining a license to distribute\n\nvehicles under the new plan or system of distribution\n\nunless the manufacturer or distributor offers to each\n\nnew motor vehicle dealer who is a party to the\n\nfranchise agreement a new franchise agreement\n\ncontaining substantially the same provisions which\n\nwere contained in the previous franchise agreement;\n\n11. Being a factory that sells directly or indirectly new motor\n\nvehicles to any retail consumer in the state except through a new\n\nmotor vehicle dealer holding a franchise for the line-make that\n\nincludes the new motor vehicle. This paragraph does not apply to\n\nfactory sales of new motor vehicles to its employees, family members\novisions which\n\nwere contained in the previous franchise agreement;\n\n11. Being a factory that sells directly or indirectly new motor\n\nvehicles to any retail consumer in the state except through a new\n\nmotor vehicle dealer holding a franchise for the line-make that\n\nincludes the new motor vehicle. This paragraph does not apply to\n\nfactory sales of new motor vehicles to its employees, family members\n\nof employees, retirees and family members of retirees, not-for-\n\nprofit organizations, or the federal, state, or local governments.\n\nThe provisions of this paragraph shall not preclude a factory from\n\nproviding information to a consumer for the purpose of marketing or\n\nfacilitating a sale of a new motor vehicle or from establishing a\n\nprogram to sell or offer to sell new motor vehicles through\n\nparticipating dealers subject to the limitations provided in\n\nparagraph 2 of Section 562 of this title;\n\n12. a. Being a factory which directly or indirectly:\n\n(1) owns any ownership interest or has any financial\n\ninterest in a new motor vehicle dealer or any\n\nperson who sells products or services pursuant to\n\nthe terms of the franchise agreement,\n\n(2) operates or controls a new motor vehicle dealer,\n\nor\n\n(3) acts in the capacity of a new motor vehicle\n\ndealer.\n\nb. (1) This paragraph does not prohibit a factory from\n\nowning or controlling a new motor vehicle dealer\n\nwhile in a bona fide relationship with a dealer\n\ndevelopment candidate who has made a substantial\n\ninitial investment in the franchise and whose\n\ninitial investment is subject to potential loss.\n\nThe dealer development candidate can reasonably\n\nexpect to acquire full ownership of a new motor\n\nvehicle dealer within a reasonable period of time\n\nnot to exceed ten (10) years and on reasonable\n\nterms and conditions. The ten-year acquisition\n\nperiod may be expanded for good cause shown.\n\n(2) This paragraph does not prohibit a factory from\n\nowning, operating, controlling, or acting in the\n\ncapacity of a new motor vehicle dealer for a\n\nperiod not to exceed twelve (12) months during\n\nthe transition from one independent dealer to\n\nanother independent dealer if the dealership is\n\nfor sale at a reasonable price and on reasonable\n\nterms and conditions to an independent qualified\n\nbuyer. On showing by a factory of good cause,\n\nthe Oklahoma New Motor Vehicle Commission may\n\nextend the time limit set forth above; extensions\n\nmay be granted for periods not to exceed twelve\n\n(12) months.\n\n(3) This paragraph does not prohibit a factory from\n\nowning, operating, or controlling or acting in\n\nthe capacity of a new motor vehicle dealer which\n\nwas in operation prior to January 1, 2000.\n\n(4) This paragraph does not prohibit a factory from\n\nowning, directly or indirectly, a minority\n\ninterest in an entity that owns, operates, or\n\ncontrols motor vehicle dealerships of the same\n\nline-make franchised by the manufacturer,\n\nprovided that each of the following conditions\n\nare met:\n\n(a) all of the new motor vehicle dealerships\n\nselling the motor vehicles of that\n\nmanufacturer in this state trade exclusively\n\nin the line-make of that manufacturer,\n\n(b) all of the franchise agreements of the\n\nmanufacturer confer rights on the dealer of\n\nthe line-make to develop and operate, within\n\na defined geographic territory or area, as\n\nmany dealership facilities as the dealer and\n\nmanufacturer shall agree are appropriate,\n\n(c) at the time the manufacturer first acquires\n\nan ownership interest or assumes operation,\n\nthe distance between any dealership thus\n\nowned or operated and the nearest\n\nunaffiliated new motor vehicle dealership\n\ntrading in the same line-make is not less\n\nthan seventy (70) miles,\nraphic territory or area, as\n\nmany dealership facilities as the dealer and\n\nmanufacturer shall agree are appropriate,\n\n(c) at the time the manufacturer first acquires\n\nan ownership interest or assumes operation,\n\nthe distance between any dealership thus\n\nowned or operated and the nearest\n\nunaffiliated new motor vehicle dealership\n\ntrading in the same line-make is not less\n\nthan seventy (70) miles,\n\n(d) during any period in which the manufacturer\n\nhas such an ownership interest, the\n\nmanufacturer has no more than three\n\nfranchise agreements with new motor vehicle\n\ndealers licensed by the Oklahoma New Motor\n\nVehicle Commission to do business within the\n\nstate, and\n\n(e) prior to January 1, 2000, the factory shall\n\nhave furnished or made available to\n\nprospective new motor vehicle dealers an\n\noffering circular in accordance with the\n\nTrade Regulation Rule on Franchising of the\n\nFederal Trade Commission, and any guidelines\n\nand exemptions issued thereunder, which\n\ndisclose the possibility that the factory\n\nmay from time to time seek to own or\n\nacquire, directly or indirectly, ownership\n\ninterests in retail dealerships;\n\n13. Being a factory which directly or indirectly makes\n\navailable for public disclosure any proprietary information provided\n\nto the factory by a new motor vehicle dealer, other than in\n\ncomposite form to new motor vehicle dealers in the same line-make or\n\nin response to a subpoena or order of the Commission or a court.\n\nProprietary information includes, but is not limited to,\n\ninformation:\n\na. derived from monthly financial statements provided to\n\nthe factory, and\n\nb. regarding any aspect of the profitability of a\n\nparticular new motor vehicle dealer;\n\n14. Being a factory which does not provide or direct leads in a\n\nfair, equitable, and timely manner. Nothing in this paragraph shall\n\nbe construed to require a factory to disregard the preference of a\n\nconsumer in providing or directing a lead;\n\n15. Being a factory which used the consumer list of a new motor\n\nvehicle dealer for the purpose of unfairly competing with dealers;\n\n16. Being a factory which prohibits a new motor vehicle dealer\n\nfrom relocating after a written request by such new motor vehicle\n\ndealer if:\n\na. the facility and the proposed new location satisfies\n\nor meets the written reasonable guidelines of the\n\nfactory. Reasonable guidelines do not include\n\nexclusivity or site control unless agreed to as set\n\nforth in subparagraphs f and g of paragraph 9 of this\n\nsubsection,\n\nb. the proposed new location is within the area of\n\nresponsibility of the new motor vehicle dealer\n\npursuant to Section 578.1 of this title, and\n\nc. the factory has sixty (60) days from receipt of the\n\nnew motor vehicle dealer's relocation request to\n\napprove or deny the request. The failure to approve\n\nor deny the request within the sixty-day time frame\n\nshall constitute approval of the request;\n\n17. Being a factory which prohibits a new motor vehicle dealer\n\nfrom adding additional line-makes to its existing facility, if,\n\nafter adding the additional line-makes, the facility satisfies the\n\nwritten reasonable capitalization standards and facility guidelines\n\nof each factory. Reasonable facility guidelines do not include a\n\nrequirement to maintain exclusivity or site control unless agreed to\n\nby the dealer as set forth in subparagraphs f and g of paragraph 9\n\nof this subsection;\n\n18. Being a factory that increases prices of new motor vehicles\n\nwhich the new motor vehicle dealer had ordered for retail consumers\n\nand notified the factory prior to the new motor vehicle dealer's\n\nreceipt of the written official price increase notification. A\n\nsales contract signed by a retail consumer accompanied with proof of\n\norder submission to the factory shall constitute evidence of each\n\nsuch order, provided that the vehicle is in fact delivered to the\n\nconsumer. Price differences applicable to new models or series\nrs\n\nand notified the factory prior to the new motor vehicle dealer's\n\nreceipt of the written official price increase notification. A\n\nsales contract signed by a retail consumer accompanied with proof of\n\norder submission to the factory shall constitute evidence of each\n\nsuch order, provided that the vehicle is in fact delivered to the\n\nconsumer. Price differences applicable to new models or series\n\nmotor vehicles at the time of the introduction of new models or\n\nseries shall not be considered a price increase for purposes of this\n\nparagraph. Price changes caused by any of the following shall not\n\nbe subject to the provisions of this paragraph:\n\na. the addition to a motor vehicle of required or\n\noptional equipment pursuant to state or federal law,\n\nb. revaluation of the United States dollar in the case of\n\nforeign-made vehicles or components, or\n\nc. an increase in transportation charges due to increased\n\nrates imposed by common or contract carriers;\n\n19. Being a factory that requires a new motor vehicle dealer to\n\nparticipate monetarily in an advertising campaign or contest, or\n\npurchase any promotional materials, showroom, or other display\n\ndecoration or materials at the expense of the new motor vehicle\n\ndealer without consent of the new motor vehicle dealer, which\n\nconsent shall not be unreasonably withheld;\n\n20. Being a factory that denies any new motor vehicle dealer\n\nthe right of free association with any other new motor vehicle\n\ndealer for any lawful purpose, unless otherwise permitted by this\n\nchapter;\n\n21. Being a factory that requires a new motor vehicle dealer to\n\nsell, offer to sell, or sell exclusively an extended service\n\ncontract, extended maintenance plan, or similar product, such as gap\n\nproducts offered, endorsed, or sponsored by the factory by the\n\nfollowing means:\n\na. by an act or statement from the factory that will in\n\nany manner adversely impact the new motor vehicle\n\ndealer, or\n\nb. by measuring the new motor vehicle dealer's\n\nperformance under the franchise based on the sale of\n\nextended service contracts, extended maintenance\n\nplans, or similar products offered, endorsed, or\n\nsponsored by the manufacturer or distributor;\n\n22. Being a factory that requires or coerces a new motor\n\nvehicle dealer in this state to purchase or lease any electric\n\nvehicle charging stations at the new motor vehicle dealer's expense\n\nunless the franchise agreement, including any related addendums,\n\nwith the new motor vehicle dealer identifies electric vehicle models\n\namong the vehicles available for sale under the dealer’s franchised\n\nline-make, or the new motor vehicle dealer has notified the\n\nmanufacturer or distributor of the new motor vehicle dealer's\n\nintention to begin selling and servicing electric vehicles\n\nmanufactured or distributed by that factory. If the new motor\n\nvehicle dealer's franchise identifies electric vehicle models or the\n\ndealer is actually offering for sale to the public or providing\n\nwarranty service on electric vehicles manufactured or distributed by\n\nthat factory, the new motor vehicle dealer may not be required to\n\npurchase or lease, at the new motor vehicle dealer's expense:\n\na. more than the number and type of electric vehicle\n\ncharging stations based upon the reasonable estimate\n\ndealer sales and service volume for those vehicles in\n\nthe dealer's market, or\n\nb. to make electric vehicle charging stations located at\n\nthe new motor vehicle dealership available for use by\n\nthe general public. Nothing in this paragraph shall\n\nprohibit a factory from offering financial assistance\n\nthrough a lump-sum payment to new motor vehicle\n\ndealers that purchase or install electric charging\n\nstations; and\n\n23. Being a factory that withdraws all or a material part of\n\nits stated electric vehicle distribution plan and fails or refuses,\n\nat the written request of the new motor vehicle dealer, to accept\nm offering financial assistance\n\nthrough a lump-sum payment to new motor vehicle\n\ndealers that purchase or install electric charging\n\nstations; and\n\n23. Being a factory that withdraws all or a material part of\n\nits stated electric vehicle distribution plan and fails or refuses,\n\nat the written request of the new motor vehicle dealer, to accept\n\nthe return or otherwise fully reimburse a new motor vehicle dealer\n\nfor the cost of parts, tools, equipment, chargers and other\n\nreturnable items required as a part of that distribution plan,\n\nprogram, policy or other initiative related to the sale or service\n\nof electric motor vehicles, provided that:\n\na. the dealer demonstrates that the volume of electric\n\nmotor vehicle sales or service is no longer adequate\n\nto allow the dealer to realize a positive return on\n\nthe investment over the useful life of the parts,\n\ntools, equipment, chargers, or other returnable items,\n\nand\n\nb. the dealer submits its request to the manufacturer or\n\ndistributor in writing and within twenty-four (24)\n\nmonths of dealer's receipt of the part, tools,\n\nequipment, charger or other returnable items.\n\nB. Notwithstanding the terms of any franchise agreement, in the\n\nevent of a proposed sale or transfer of a dealership, the\n\nmanufacturer or distributor shall be permitted to exercise a right\n\nof first refusal to acquire the assets or ownership interest of the\n\ndealer of the new motor vehicle dealership, if such sale or transfer\n\nis conditioned upon the manufacturer or dealer entering into a\n\ndealer agreement with the proposed new owner or transferee, only if\n\nall the following requirements are met:\n\n1. To exercise its right of first refusal, the factory must\n\nnotify the new motor vehicle dealer in writing within sixty (60)\n\ndays of receipt of the completed proposal for the proposed sale\n\ntransfer;\n\n2. The exercise of the right of first refusal will result in\n\nthe new motor vehicle dealer and the owner of the dealership\n\nreceiving the same or greater consideration as they have contracted\n\nto receive in connection with the proposed change of ownership or\n\ntransfer;\n\n3. The proposed sale or transfer of the dealership does not\n\ninvolve the transfer or sale to a member or members of the family of\n\none or more dealer owners, or to a qualified manager or a\n\npartnership or corporation controlled by such persons; and\n\n4. The factory agrees to pay the reasonable expenses, including\n\nattorney fees which do not exceed the usual, customary, and\n\nreasonable fees charged for similar work done for other clients\n\nincurred by the proposed new owner and transferee prior to the\n\nexercise by the factory of its right of first refusal in negotiating\n\nand implementing the contract for the proposed sale or transfer of\n\nthe dealership or dealership assets. Notwithstanding the foregoing,\n\nno payment of expenses and attorney fees shall be required if the\n\nproposed new dealer or transferee has not submitted or caused to be\n\nsubmitted an accounting of those expenses within thirty (30) days of\n\nreceipt of the written request of the factory for such an\n\naccounting. The accounting may be requested by a factory before\n\nexercising its right of first refusal.\n\nC. Nothing in this section shall prohibit, limit, restrict, or\n\nimpose conditions on:\n\n1. Business activities, including without limitation the\n\ndealings with motor vehicle manufacturers and the representatives\n\nand affiliates of motor vehicle manufacturers, of any person that is\n\nprimarily engaged in the business of short-term, not to exceed\n\ntwelve (12) months, rental of motor vehicles and industrial and\n\nconstruction equipment and activities incidental to that business,\n\nprovided that:\n\na. any motor vehicle sold by that person is limited to\n\nused motor vehicles that have been previously used\n\nexclusively and regularly by that person in the\ncturers, of any person that is\n\nprimarily engaged in the business of short-term, not to exceed\n\ntwelve (12) months, rental of motor vehicles and industrial and\n\nconstruction equipment and activities incidental to that business,\n\nprovided that:\n\na. any motor vehicle sold by that person is limited to\n\nused motor vehicles that have been previously used\n\nexclusively and regularly by that person in the\n\nconduct of business and used motor vehicles traded in\n\non motor vehicles sold by that person,\n\nb. warranty repairs performed by that person on motor\n\nvehicles are limited to those motor vehicles that the\n\nperson owns, previously owned, or takes in trade, and\n\nc. motor vehicle financing provided by that person to\n\nretail consumers for motor vehicles is limited to used\n\nvehicles sold by that person in the conduct of\n\nbusiness; or\n\n2. The direct or indirect ownership, affiliation, or control of\n\na person described in paragraph 1 of this subsection.\n\nD. As used in this section:\n\n1. \"Substantially relates\" means the nature of criminal conduct\n\nfor which the person was convicted has a direct bearing on the\n\nfitness or ability to perform one or more of the duties or\n\nresponsibilities necessarily related to the occupation; and\n\n2. \"Poses a reasonable threat\" means the nature of criminal\n\nconduct for which the person was convicted involved an act or threat\n\nof harm against another and has a bearing on the fitness or ability\n\nto serve the public or work with others in the occupation.","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":"e0fac2d456b9b9c6031f30e0fc6f980436909b4386685da450fb01774c306b2f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-47-47-565.4","next":"us-ok/okla.-stat.-tit.-47-47-565v2"},"notice":"GroundRules: Original legal text. Not legal advice."}