{"data":{"id":"us-ok/okla.-stat.-tit.-47-47-565v2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 47, § 47-565v2","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 or new powersports vehicle\n\ndealer who:\n\na. has required a purchaser of a new motor vehicle or new\n\npowersports vehicle, as a condition of sale and\n\ndelivery thereof, to also purchase special features,\n\nappliances, accessories, or equipment not desired or\n\nrequested by the purchaser and installed by the new\n\nmotor vehicle dealer or new powersports vehicle\n\ndealer,\n\nb. uses any false or misleading advertising in connection\n\nwith business as a new motor vehicle dealer or new\n\npowersports 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 or powersports vehicle,\n\ne. has been convicted of a felony crime that\n\nsubstantially relates to the occupation of a new motor\n\nvehicle dealer or new powersports vehicle dealer and\n\nposes a reasonable threat to public safety,\n\nf. has committed a fraudulent act in selling, purchasing,\n\nor otherwise dealing in new motor vehicles or new\n\npowersports vehicles or has misrepresented the terms\n\nand conditions of a sale, purchase or contract for\n\nsale or purchase of a new motor vehicle or new\n\npowersports vehicle or any interest therein including\n\nan option 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 vehicle salesperson who is not employed as such by a\n\nlicensed new motor vehicle dealer or powersports vehicle dealer;\n\n7. Being a new motor vehicle dealer or new powersports vehicle\n\ndealer 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 vehicles\n\nfor the sale of the same and is not authorized by the\n\nmanufacturer or distributor to render predelivery\n\npreparation of such vehicles sold to purchasers and to\n\nperform any authorized post-sale work pursuant to the\n\nmanufacturer’s or distributor’s warranty,\n\nd. employs or utilizes the services of used motor vehicle\n\nlots or dealers or other unlicensed persons or\nributor of new or unused vehicles\n\nfor the sale of the same and is not authorized by the\n\nmanufacturer or distributor to render predelivery\n\npreparation of such vehicles sold to purchasers and to\n\nperform any authorized post-sale work pursuant to the\n\nmanufacturer’s or distributor’s warranty,\n\nd. employs or utilizes the services of used motor vehicle\n\nlots or dealers or other unlicensed persons or\n\nunregistered persons in connection with the sale of\n\nnew vehicles,\n\ne. does not properly service a new motor vehicle or new\n\npowersports vehicle before delivery of same to the\n\noriginal 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 dealer\n\nor powersports vehicle dealer:\n\n(1) to accept delivery of any vehicle or vehicles,\n\nparts, or accessories therefor, or any other\n\ncommodities including advertising material which\n\nshall not have been ordered by the new motor\n\nvehicle dealer,\n\n(2) to order or accept delivery of any motor vehicle\n\nor powersports vehicle with special features,\n\nappliances, accessories, or equipment not\n\nincluded in the list price of the vehicles as\n\npublicly advertised by the manufacturer thereof,\n\nor\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 or new powersports vehicle dealer certain\n\nmodels of motor vehicles, changing or amending\n\nunilaterally the new motor vehicle dealer’s allotment\n\nof motor vehicles, and/or withholding and delaying\n\ndelivery of the vehicles out of the ordinary course of\n\nbusiness, in order to induce by such coercion any new\n\nmotor vehicle dealer or new powersports vehicle dealer\n\nto participate or contribute to any local or national\n\nadvertising fund controlled directly or indirectly by\n\nthe factory or 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 dealer;\n\nhowever, nothing in this section shall prohibit a\n\nfactory from supporting an advertising association\n\nwhich is open to all new motor vehicle dealers or new\n\npowersports vehicle dealers 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 of any new motor vehicle dealer or\n\nnew powersports vehicle dealer under the terms of the\n\nfranchise agreement which:\n\n(1) is unfair, unreasonable, arbitrary, or\n\ninequitable, and\n\n(2) does not consider the relevant and material local\n\nand state or regional criteria, including\n\nprevailing economic conditions affecting the\n\nsales or service performance of a vehicle dealer\n\nor any relevant and material data and facts\n\npresented by the dealer in writing within thirty\nnder the terms of the\n\nfranchise agreement which:\n\n(1) is unfair, unreasonable, arbitrary, or\n\ninequitable, and\n\n(2) does not consider the relevant and material local\n\nand state or regional criteria, including\n\nprevailing economic conditions affecting the\n\nsales or service performance of a vehicle dealer\n\nor any relevant and material data and facts\n\npresented by the dealer in writing within thirty\n\n(30) days of the written notice of the\n\nmanufacturer to the dealer of its intention to\n\ncancel, terminate, or not renew the dealer’s\n\nfranchise agreement,\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 or new\n\npowersports vehicle dealers at the same price for a\n\ncomparably equipped motor vehicle, on the same terms,\n\nwith 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 or new powersports vehicle dealer to\n\nenter into any agreement or to cancel any agreement;\n\nhas failed to act in good faith and in a fair,\n\nequitable, and nondiscriminatory manner; has directly\n\nor indirectly coerced, intimidated, threatened, or\n\nrestrained any new motor vehicle dealer; has acted\n\ndishonestly; or has failed to act in accordance with\n\nthe reasonable standards of fair 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\n\nrepair orders which contain warranty-like repairs,\n\nwhichever is less, covering repairs made no more than\nor 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 motor vehicle dealer may not submit a\n\nrequest to establish its retail rates more than once\n\nin a twelve-month period. That request may establish\n\na parts markup rate, labor rate, or both. The new\n\nmotor vehicle dealer or new powersports vehicle dealer\n\nshall calculate its retail parts rate by determining\n\nthe total charges for parts from the qualified repair\n\norders submitted, dividing that amount by the new\n\nmotor vehicle dealer’s total cost of the purchase of\n\nthose parts, subtracting one (1), and multiplying by\n\none hundred (100) to produce a percentage. The new\n\nmotor vehicle dealer or new powersports vehicle dealer\n\nshall calculate its retail labor rate by dividing the\n\namount of the new vehicle dealer’s total labor sales\n\nfrom the qualified repair orders by the total labor\n\nhours charged for those sales. When submitting repair\n\norders to establish a retail parts and labor rate, a\n\nnew motor vehicle dealer or new powersports vehicle\n\ndealer need not include repairs 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 vehicles owned by the new motor\n\nvehicle dealer or new powersports vehicle dealer\n\nor employee thereof at the time of the 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 or new powersports vehicle\n\ndealer pursuant to this section for a retail labor\n\nrate or retail parts markup rate is substantially\n\nhigher than the new vehicle dealer’s current warranty\n\nrates, the manufacturer or distributor may request, in\n\nwriting, within forty-five (45) days after the\n\nmanufacturer’s or distributor’s receipt of the new\n\nvehicle dealer’s initial submission, all repair orders\n\nclosed within the period of thirty (30) days\n\nimmediately preceding, or thirty (30) days immediately\n\nfollowing, the set of repair orders initially\n\nsubmitted by the new motor vehicle dealer. All time\n\nperiods under this section shall be suspended until\n\nthe supplemental repair orders are provided. If the\n\nmanufacturer or distributor requests supplemental\n\nrepair orders, the manufacturer or distributor may,\n\nwithin thirty (30) days after receiving the\n\nsupplemental repair orders and in accordance with the\n\nformula described in this subsection, calculate a\n\nproposed adjusted retail labor rate or retail parts\nr this section shall be suspended until\n\nthe supplemental repair orders are provided. If the\n\nmanufacturer or distributor requests supplemental\n\nrepair orders, the manufacturer or distributor may,\n\nwithin thirty (30) days after receiving the\n\nsupplemental repair orders and in accordance with the\n\nformula described in this subsection, calculate a\n\nproposed adjusted retail labor rate or retail parts\n\nmarkup rate, as applicable, based upon any set of the\n\nqualified repair orders submitted by the franchisee\n\nand following the formula set forth herein to\n\nestablish the rate. The retail labor and parts rates\n\nshall go into effect thirty (30) days following the\n\napproval by the manufacturer or distributor. If the\n\ndeclared rate is rebutted, the manufacturer or\n\ndistributor shall provide written notice stating the\n\nreasons for the rebuttal, an explanation of the\n\nreasons for the rebuttal, and a copy of all\n\ncalculations used by the franchisor in determining the\n\nmanufacturer or distributor’s position and propose an\n\nadjustment in writing of the average percentage markup\n\nor labor rate based on that rebuttal not later than\n\nforty-five (45) days after submission. If the new\n\nmotor vehicle dealer or new powersports vehicle dealer\n\ndoes not agree with the proposed average percentage\n\nmarkup or labor rate, the new vehicle dealer may file\n\na protest with the Commission not later than thirty\n\n(30) days after receipt of that proposal by the\n\nmanufacturer or distributor. In the event a protest\n\nis filed, the manufacturer or distributor shall have\n\nthe burden of proof to establish the new vehicle\n\ndealer’s submitted 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 or\n\nnew powersports vehicle dealer seeking to exercise its\n\nrights under this section. A manufacturer or\n\ndistributor may require a dealer to submit repair\n\norders in accordance with this section in order to\n\nvalidate the reasonableness of a dealer’s retail rate\n\nfor parts or labor not more often than once every\n\ntwelve (12) months. A manufacturer or distributor may\n\nnot otherwise recover its costs from new vehicle\n\ndealers within this state including a surcharge\n\nimposed on a new motor vehicle dealer solely intended\n\nto recover the cost of reimbursing a dealer for parts\n\nand labor pursuant to this section; provided, a\n\nmanufacturer or distributor shall not be prohibited\n\nfrom increasing prices for vehicles or parts in the\n\nnormal course of business or from auditing and\n\ncharging back claims in accordance with this section.\n\nAll claims made by dealers for compensation for\n\ndelivery, preparation, warranty, or recall repair work\n\nshall be paid within thirty (30) days after approval\n\nand shall be approved or disapproved within thirty\nstributor shall not be prohibited\n\nfrom increasing prices for vehicles or parts in the\n\nnormal course of business or from auditing and\n\ncharging back claims in accordance with this section.\n\nAll claims made by dealers for compensation for\n\ndelivery, preparation, warranty, or recall repair work\n\nshall be paid within thirty (30) days after approval\n\nand shall be approved or disapproved within thirty\n\n(30) days after receipt. When any claim is\n\ndisapproved, the dealer shall be notified in writing\n\nof the grounds for disapproval. The dealer’s\n\ndelivery, preparation, and warranty obligations as\n\nfiled with the Commission shall constitute the\n\ndealer’s sole responsibility for product liability as\n\nbetween the dealer and manufacturer. A factory may\n\nreasonably and periodically audit a new motor vehicle\n\ndealer or new powersports vehicle dealer to determine\n\nthe validity of paid claims for dealer compensation or\n\nany charge-backs for warranty parts or service\n\ncompensation. Except in cases of suspected fraud,\n\naudits of warranty payments shall only be for the one-\n\nyear period immediately following the date of the\n\npayment. A manufacturer shall reserve the right to\n\nreasonable, periodic audits to determine the validity\n\nof paid claims for dealer compensation or any charge-\n\nbacks for consumer or dealer incentives. Except in\n\ncases of suspected fraud, audits of incentive payments\n\nshall only be for a one-year period immediately\n\nfollowing the date of the payment. A factory shall\n\nnot deny a claim or charge a new motor vehicle dealer\n\nback subsequent to the payment of the claim unless the\n\nfactory can show that the claim was false or\n\nfraudulent or that the new motor vehicle dealer or new\n\npowersports vehicle dealer failed to reasonably\n\nsubstantiate the claim by the written reasonable\n\nprocedures of the factory. A factory shall not deny a\n\nclaim or implement a charge-back against a new 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 dealer; provided, that\n\nthe factory may require the dealer to provide, within\n\nthirty (30) days of notice of charge-back, withholding\n\nof payment, or denial of claim, the documentation to\n\ndemonstrate the vehicle sale, delivery, and customer\n\nqualification for an incentive as reported, including\n\nconsumer name and address and written attestation\n\nsigned by the dealer operator or general manager\n\nstating the consumer was not on the export control\n\nlist and the dealer did not know or have reason to\n\nknow the vehicle was 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,\nr 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,\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 dealer’s existing franchise agreement or\n\nwhich waives any right of the new motor vehicle dealer\n\nor new powersports vehicle dealer as protected by\n\nSection 561 et seq. of this title, or remodel,\n\nrenovate, or recondition the dealer’s existing\n\nfacilities as a prerequisite to receiving a model or\nnter into a separate agreement which\n\nadversely alters the rights or obligations contained\n\nwithin the dealer’s existing franchise agreement or\n\nwhich waives any right of the new motor vehicle dealer\n\nor new powersports vehicle dealer as protected by\n\nSection 561 et seq. of this title, or remodel,\n\nrenovate, or recondition the 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\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 limited production model vehicles, a vehicle\n\nnot advertised by the factory for sale in this state,\n\nvehicles that are subject to allocation affected by\n\nfederal environmental laws or environmental laws of\n\nthis state, 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 vehicle that the\n\nfranchised new motor vehicle dealer or new powersports\n\nvehicle dealer is authorized or licensed by the\n\nfranchisor to sell or service, requires a dealer to\n\nconstruct a new facility or substantially renovate the\n\ndealer’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 or new powersports\n\nvehicle dealer voluntarily agrees to facility\n\nconstruction or renovation in exchange for money,\n\ncredit, allowance, reimbursement, or additional\n\nvehicle allocation to a dealer from the factory to\n\ncompensate the dealer for the cost of, or a portion of\n\nthe cost of, the facility construction or renovation.\n\nExcept as necessary to comply with a health or safety\n\nlaw, or to comply with a technology or safety\n\nrequirement which is necessary to sell or service a\n\nmotor vehicle or powersports vehicle that the\n\nfranchised dealer is authorized or licensed by the\n\nfranchisor to sell or service, a new vehicle dealer\n\nwhich completes a facility construction or renovation\n\npursuant to factory requirements shall not be required\n\nto construct a new facility or renovate the existing\n\nfacility if the same area of the facility or premises\n\nhas been constructed or substantially altered within\n\nthe last ten (10) years and the construction or\n\nalteration was approved by the manufacturer as a part\n\nof a facility upgrade program, standard, or policy.\n\nFor purposes of this subparagraph, “substantially\n\naltered” means to perform an alteration that\n\nsubstantially impacts the architectural features,\n\ncharacteristics, or integrity of a structure or lot.\n\nThe term shall not include routine maintenance\n\nreasonably necessary to maintain a dealership in\n\nattractive condition. If a facility upgrade program,\n\nstandard, or policy under which the dealer completed a\n\nfacility construction or substantial alteration does\n\nnot contain a specific time period during which the\n\nmanufacturer or distributor shall provide payments or\n\nbenefits to a participating dealer, or the time frame\n\nspecified under the program is reduced or canceled\n\nprematurely in the unilateral discretion of the\nfacility upgrade program,\n\nstandard, or policy under which the dealer completed a\n\nfacility construction or substantial alteration does\n\nnot contain a specific time period during which the\n\nmanufacturer or distributor shall provide payments or\n\nbenefits to a participating dealer, or the time frame\n\nspecified under the program is reduced or canceled\n\nprematurely in the unilateral discretion of the\n\nmanufacturer or distributor, the manufacturer or\n\ndistributor shall not deny the participating dealer\n\nany payment or benefit under the terms of the program,\n\nstandard, or policy as it existed when the dealer\n\nbegan to perform under the program, standard, or\n\npolicy for the balance of the ten-year period,\n\nregardless of whether the manufacturer’s or\n\ndistributor’s program, standard, or policy has been\n\nchanged or canceled, unless the manufacturer and\n\ndealer agree, in writing, to the change in payment or\n\nbenefit,\n\nf. requires a new motor vehicle dealer or new powersports\n\nvehicle dealer to establish an exclusive facility,\n\nunless supported by reasonable business, market, and\n\neconomic considerations; provided, that this section\n\nshall not restrict the terms of any agreement for such\n\nexclusive facility voluntarily entered into and\n\nsupported by valuable consideration separate from the\n\nnew motor vehicle dealer’s right to sell and service\n\nmotor vehicles for the franchisor,\n\ng. requires a new motor vehicle dealer or new powersports\n\nvehicle dealer to enter into a site-control agreement\n\ncovering any or all of the new motor vehicle dealer’s\n\nfacilities or premises; provided, that this section\n\nshall not restrict the terms of any site-control\n\nagreement voluntarily entered into and supported by\n\nvaluable consideration separate from the new motor\n\nvehicle dealer’s right to sell and service motor\n\nvehicles for the franchisor. Notwithstanding the\n\nforegoing or the terms of any site-control agreement,\n\na site-control agreement automatically extinguishes if\n\nall of the factory’s franchises that operated from the\n\nlocation that are the subject of the site-control\n\nagreement are terminated 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 or new powersports vehicle dealer\n\nfor sales, incentives, or other payments related to a\n\nvehicle sold by the dealer because the purchaser of\n\nthe new vehicle exported or resold the 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 vehicle dealer knew or reasonably should have\n\nknown of the purchaser’s intention to export or resell\n\nthe vehicle. There is a rebuttable presumption that\n\nthe new vehicle dealer did not know or could not have\n\nknown that the vehicle would be exported if the\n\nvehicle is titled and registered in any state of the\n\nUnited States, or\n\ni. requires a new motor vehicle dealer or new powersports\n\nvehicle dealer to purchase goods or services for the\n\nconstruction, renovation, or improvement of the new\n\ndealer’s facility from a vendor chosen by the factory\n\nif goods or services available from other sources are\n\nof substantially similar quality and design and comply\n\nwith all applicable laws; provided, however, that such\n\ngoods are not subject to the factory’s intellectual\n\nproperty or trademark rights and the new vehicle\n\ndealer has received the factory’s approval, which\n\napproval may not be unreasonably withheld. Nothing in\n\nthis subparagraph may be construed to allow a new\n\nmotor vehicle dealer or new powersports vehicle dealer\n\nto impair or eliminate a factory’s intellectual\n\nproperty, trademark rights, or trade dress usage\n\nguidelines. Nothing in this section prohibits the\n\nenforcement of a voluntary agreement between the\n\nfactory and the new vehicle dealer where separate and\nph may be construed to allow a new\n\nmotor vehicle dealer or new powersports vehicle dealer\n\nto impair or eliminate a factory’s intellectual\n\nproperty, trademark rights, or trade dress usage\n\nguidelines. Nothing in this section prohibits the\n\nenforcement of a voluntary agreement between the\n\nfactory and the new vehicle dealer where separate and\n\nvaluable consideration has been offered and accepted;\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. Upon the request of any\n\nnew motor vehicle dealer or new powersports vehicle\n\ndealer franchised by it, a factory shall disclose in\n\nwriting to the dealer the basis upon which new\n\nvehicles are allocated, scheduled, and delivered among\n\nthe new motor vehicle dealers of the same line-make\n\nfor that factory, or\n\nb. changes an established plan or system of new motor\n\nvehicle or new powersports vehicle distribution. A\n\nnew motor vehicle dealer or new powersports vehicle\n\ndealer franchise agreement shall continue in full\n\nforce and operation notwithstanding a change, in whole\n\nor in part, of an established plan or system of\n\ndistribution of the motor vehicles or new powersports\n\nvehicles offered or previously offered for sale under\n\nthe franchise agreement. The appointment of a new\n\nimporter or distributor for motor vehicles or new\n\npowersports vehicle offered for sale under the\n\nfranchise agreement shall be deemed to be a change of\n\nan established plan or system of distribution. The\n\ndiscontinuation of a line-make shall not be deemed to\n\nbe a change of an established plan or system of motor\n\nvehicle or new powersports 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 or new\n\npowersports vehicle dealers with an active franchise\n\nagreement for the other line-make in the state if such\n\ndealers are no longer authorized to sell the\n\ncomparable vehicle previously sold through their line-\n\nmake. Changing a vehicle’s powertrain is not\n\nsufficient to show it is substantially different.\n\nUpon the occurrence of such change, the manufacturer\n\nor distributor shall be prohibited from obtaining a\n\nlicense to distribute vehicles under the new plan or\n\nsystem of distribution unless the manufacturer or\n\ndistributor offers to each vehicle dealer who is a\n\nparty to the franchise agreement a new franchise\n\nagreement containing substantially the same provisions\n\nwhich were contained in the previous franchise\n\nagreement;\n\n11. Being a factory that sells directly or indirectly new motor\n\nvehicles or new powersports vehicles to any retail consumer in the\n\nstate except through a new motor vehicle dealer or new powersports\n\nvehicle dealer holding a franchise for the line-make that includes\n\nthe new motor vehicle or new powersports vehicle. This paragraph\n\ndoes not apply to factory sales of new vehicles to its employees,\n\nfamily members of employees, retirees and family members of\n\nretirees, not-for-profit organizations, or the federal, state, or\n\nlocal governments. The provisions of this paragraph shall not\n\npreclude a factory from providing information to a consumer for the\n\npurpose of marketing or facilitating a sale of a new vehicle or from\n\nestablishing a program to sell or offer to sell new motor vehicles\n\nor new powersports vehicle through participating dealers subject to\n\nthe limitations provided in paragraph 2 of Section 562 of this\n\ntitle;\n\n12. a. Being a factory which directly or indirectly:\npreclude a factory from providing information to a consumer for the\n\npurpose of marketing or facilitating a sale of a new vehicle or from\n\nestablishing a program to sell or offer to sell new motor vehicles\n\nor new powersports vehicle through participating dealers subject to\n\nthe limitations provided in paragraph 2 of Section 562 of this\n\ntitle;\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 new\n\npowersports vehicle dealer or any person who\n\nsells products or services pursuant to the terms\n\nof the franchise agreement,\n\n(2) operates or controls a new motor vehicle dealer\n\nor new powersports vehicle dealer, or\n\n(3) acts in the capacity of a new motor vehicle\n\ndealer or new powersports vehicle dealer.\n\nb. (1) This paragraph does not prohibit a factory from\n\nowning or controlling a new motor vehicle dealer\n\nor new powersports vehicle dealer while in a bona\n\nfide relationship with a dealer development\n\ncandidate who has made a substantial initial\n\ninvestment in the franchise and whose initial\n\ninvestment is subject to potential loss. The\n\ndealer development candidate can reasonably\n\nexpect to acquire full ownership of a new vehicle\n\ndealer within a reasonable period of time not to\n\nexceed ten (10) years and on reasonable terms and\n\nconditions. The ten-year acquisition period may\n\nbe 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 or new\n\npowersports vehicle dealer for a period not to\n\nexceed twelve (12) months during the transition\n\nfrom one independent dealer to another\n\nindependent dealer if the dealership is for sale\n\nat a reasonable price and on reasonable terms and\n\nconditions to an independent qualified buyer. On\n\nshowing by a factory of good cause, the Oklahoma\n\nNew Motor Vehicle Commission may extend the time\n\nlimit set forth above; extensions may be granted\n\nfor periods not to exceed twelve (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 or new\n\npowersports vehicle dealer which was in operation\n\nprior 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 or powersports\n\nvehicle dealerships of the same line-make\n\nfranchised by the manufacturer, provided that\n\neach of the following conditions are met:\n\n(a) all of the new motor vehicle or new\n\npowersports vehicle dealerships selling the\n\nvehicles of that manufacturer in this state\n\ntrade exclusively in the line-make of that\n\nmanufacturer,\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 or new\n\npowersports vehicle dealership trading in\n\nthe same line-make is not less than seventy\n\n(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 or new powersports vehicle dealers\n\nlicensed by the Oklahoma New Motor Vehicle\n\nCommission to do business within the state,\n\nand\n\ne is not less than seventy\n\n(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 or new powersports vehicle dealers\n\nlicensed by the Oklahoma New Motor Vehicle\n\nCommission to do business within the state,\n\nand\n\n(e) prior to January 1, 2000, the factory shall\n\nhave furnished or made available to\n\nprospective new vehicle dealers an offering\n\ncircular in accordance with the Trade\n\nRegulation 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 or new powersports\n\nvehicle dealer, other than in composite form to new vehicle dealers\n\nin the same line-make or in response to a subpoena or order of the\n\nCommission or a court. Proprietary information includes, but is not\n\nlimited to, information:\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 or new powersports\n\nvehicle 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 or new powersports vehicle dealer for the purpose of\n\nunfairly competing with dealers;\n\n16. Being a factory which prohibits a new motor vehicle dealer\n\nor new powersports vehicle dealer from relocating after a written\n\nrequest by such dealer 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 or new\n\npowersports vehicle dealer pursuant to Section 578.1\n\nof this title, and\n\nc. the factory has sixty (60) days from receipt of the\n\nnew motor vehicle dealer’s or powersports vehicle\n\ndealer’s relocation request to approve or deny the\n\nrequest. The failure to approve or deny the request\n\nwithin the sixty-day time frame shall constitute\n\napproval of the request;\n\n17. Being a factory which prohibits a new motor vehicle dealer\n\nor new powersports vehicle dealer from adding additional line-makes\n\nto its existing facility, if, after adding the additional line-\n\nmakes, the facility satisfies the written reasonable capitalization\n\nstandards and facility guidelines of each factory. Reasonable\n\nfacility guidelines do not include a requirement to maintain\n\nexclusivity or site control unless agreed to by the dealer as set\n\nforth in subparagraphs f and g of paragraph 9 of this subsection;\n\n18. Being a factory that increases prices of new motor vehicles\n\nor new powersports vehicles which the dealer had ordered for retail\n\nconsumers and notified the factory prior to the dealer’s receipt of\n\nthe written official price increase notification. A sales contract\n\nsigned by a retail consumer accompanied with proof of order\n\nsubmission to the factory shall constitute evidence of each such\n\norder, 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\nr’s receipt of\n\nthe written official price increase notification. A sales contract\n\nsigned by a retail consumer accompanied with proof of order\n\nsubmission to the factory shall constitute evidence of each such\n\norder, 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 or powersports vehicle\n\nof required or optional equipment pursuant to state or\n\nfederal 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 or\n\nnew powersports vehicle dealer to participate monetarily in an\n\nadvertising campaign or contest, or purchase any promotional\n\nmaterials, showroom, or other display decoration or materials at the\n\nexpense of the new motor vehicle or powersports vehicle dealer\n\nwithout consent of the dealer, which consent shall not be\n\nunreasonably withheld;\n\n20. Being a factory that denies any new motor vehicle dealer or\n\nnew powersports vehicle dealer the right of free association with\n\nany other dealer for any lawful purpose, unless otherwise permitted\n\nby this chapter; or\n\n21. Being a factory that requires a new motor vehicle dealer or\n\nnew powersports vehicle dealer to sell, offer to sell, or sell\n\nexclusively an extended service contract, extended maintenance plan,\n\nor similar product, such as gap products offered, endorsed, or\n\nsponsored by the factory by the following 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 dealer’s performance under the franchise\n\nbased on the sale of extended service contracts,\n\nextended maintenance plans, or similar products\n\noffered, endorsed, or sponsored by the manufacturer or\n\ndistributor.\n\nB. Notwithstanding the terms of any franchise agreement, in the\n\nevent of a proposed sale or transfer of a new motor vehicle\n\ndealership, the manufacturer or distributor shall be permitted to\n\nexercise a right of first refusal to acquire the assets or ownership\n\ninterest of the dealer of the new motor vehicle dealership, if such\n\nsale or transfer is conditioned upon the manufacturer or dealer\n\nentering into a dealer agreement with the proposed new owner or\n\ntransferee, only if all the following requirements are met:\n\n1. The manufacturer or distributor must notify the new motor\n\nvehicle dealer of its intent to exercise the right of first refusal\n\nin writing within sixty (60) days of receipt of the completed\n\nproposal for the proposed sale or transfer;\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. If the proposed new motor vehicle dealership sale or\n\ntransfer includes the sale, transfer, or lease of the real property\n\nand improvements thereon, then the right of first refusal shall\n\ninclude the same terms for the purchase or lease of the real\n\nproperty and all improvements thereon for not less than the\n\nconsideration the new motor vehicle dealer has contracted to receive\n\nin connection with the proposed sale or transfer;\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;\nnts thereon for not less than the\n\nconsideration the new motor vehicle dealer has contracted to receive\n\nin connection with the proposed sale or transfer;\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;\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; and\n\n5. a. For the purposes of this paragraph, “multi-dealership\n\ntransaction” means any proposed sale, transfer, or\n\nassignment that involves two or more new motor vehicle\n\ndealerships that are being sold as part of the same\n\noverall transaction or a series of related\n\ntransactions intended by the parties to constitute a\n\nsingle deal.\n\nb. In a multi-dealership transaction, the selling dealer\n\nmay withdraw the proposed sale, transfer, or\n\nassignment of the dealership that is subject to the\n\nmanufacturer’s or distributor’s right of first refusal\n\nin response to the manufacturer’s or distributor’s\n\ntimely received notice of intent to exercise the right\n\nof first refusal as follows:\n\n(1) the selling dealer shall provide written notice\n\nto the manufacturer or distributor within thirty\n\n(30) days of receipt of the manufacturer’s or\n\ndistributor’s timely received notice of intent to\n\nexercise the right of first refusal, stating that\n\neither:\n\n(a) the entire multi-dealership transaction has\n\nbeen withdrawn, or\n\n(b) the specific dealership subject to the\n\ntimely received notice of manufacturer’s or\n\ndistributor’s intent to exercise the right\n\nof first refusal has been excluded from the\n\nmulti-dealership transaction,\n\n(2) upon the manufacturer’s or distributor’s receipt\n\nof the selling dealer’s withdrawal notice under\n\ndivision (1) of this subparagraph, the proposed\n\nsale, transfer, or assignment of the dealership\n\nsubject to the manufacturer’s or distributor’s\n\ntimely received notice of intent to exercise the\n\nright of first refusal shall be deemed withdrawn,\n\nand the manufacturer’s or distributor’s right of\n\nfirst refusal with respect to that dealership\n\nshall be deemed extinguished, and\nthdrawal notice under\n\ndivision (1) of this subparagraph, the proposed\n\nsale, transfer, or assignment of the dealership\n\nsubject to the manufacturer’s or distributor’s\n\ntimely received notice of intent to exercise the\n\nright of first refusal shall be deemed withdrawn,\n\nand the manufacturer’s or distributor’s right of\n\nfirst refusal with respect to that dealership\n\nshall be deemed extinguished, and\n\n(3) if the selling dealer does not provide the\n\nwithdrawal notice within the thirty-day period,\n\nthe manufacturer or distributor may proceed with\n\nexercising the 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 manufacturers and the representatives and affiliates\n\nof manufacturers, of any person that is primarily engaged in the\n\nbusiness of short-term, not to exceed twelve (12) months, rental of\n\nmotor vehicles, powersports vehicles, and industrial and\n\nconstruction equipment and activities incidental to that business,\n\nprovided that:\n\na. any motor vehicle or powersports vehicle sold by that\n\nperson is limited to used motor vehicles or\n\npowersports vehicles that have been previously used\n\nexclusively and regularly by that person in the\n\nconduct of business and used motor vehicles or used\n\npowersports vehicles traded in on motor vehicles or\n\npowersports vehicles sold by that person,\n\nb. warranty repairs performed by that person on motor\n\nvehicles or powersports vehicles are limited to those\n\nvehicles that the person owns, previously owned, or\n\ntakes in trade, and\n\nc. motor vehicle or powersports vehicle financing\n\nprovided by that person to retail consumers for motor\n\nvehicles or powersports 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.\n\nE. Nothing in this section shall prohibit a manufacturer or\n\ndistributor from requiring a dealer to be in compliance with the\n\nfranchise agreement and authorized to sell a make and model based on\n\napplicable reasonable standards and requirements that include but\n\nare not limited to any facility, technology, or training\n\nrequirements necessary to sell or service a vehicle, in order to be\n\neligible for delivery or allotment of a make or model of a new motor\n\nvehicle or new powersports vehicle or an incentive.","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":"b82319cd93b0ae27ea31b51e6052da984444c8ceac69f5cb0d69e2bfe1367ddb","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-47-47-565v1","next":"us-ok/okla.-stat.-tit.-47-47-566"},"notice":"GroundRules: Original legal text. Not legal advice."}