{"data":{"id":"us-sc/s.c.-code-ann.-39-6-70","jurisdiction":"us-sc","citation":"S.C. Code Ann. § 39-6-70","heading":"Manufacturer prohibited from owning or competing with dealerships; exceptions.","body":"(A)(1) It is unlawful for a manufacturer, distributor, or wholesaler or any parent, affiliate, wholly or partially owned subsidiary, officer, or representative of a manufacturer, distributor, or wholesaler to:\n(a) own, operate, or control or to participate in the ownership, operation, or control of a new equipment dealer in this State;\n(b) establish in this State an additional dealer or dealership in which that person or entity has an interest; or\n(c) own, operate, or control, directly or indirectly, an interest in a dealer or dealership in this State.\n(2) This subsection does not prohibit the making of a loan by a manufacturer, distributor, or wholesaler to any person or entity for the purpose of acquiring a dealer or dealership, nor does it prohibit the ownership, operation, or control of a new equipment dealer by a manufacturer, distributor, or wholesaler:\n(a) for a temporary period, not to exceed three years, during the transition from one owner or operator to another;\n(b) if a prospective new equipment dealer is not available to own or operate the dealership within a particular geographic market area not serviced by an existing dealer and the manufacturer, distributor, or wholesaler contracts with or employs a third party to open or operate a dealership owned or controlled by the manufacturer, distributor, or wholesaler pursuant to a bona fide written agreement or plan giving a third party ownership of the new equipment dealer or dealership over time;\n(c) during the period the new equipment dealer is being sold pursuant to a bona fide contract, shareholder agreement, or purchase option to the operator of the dealership; or\n(d) if the manufacturer, distributor, or wholesaler is an owner, operator, or controller as of January 1, 2000, of a dealership that has been engaged in the retail sale of equipment within the same geographical market area for a continuous two-year period of time immediately before January 1, 2000, and a prospective new equipment dealer is not available to own or operate the dealership in a manner consistent with the public interest.\n(B) It is unlawful for a manufacturer, distributor, or wholesaler or any parent, affiliate, wholly or partially owned subsidiary, officer, or representative of a manufacturer, distributor, or wholesaler to compete unfairly with a new equipment dealer of the same product line or make of new equipment operating pursuant to a dealership agreement or sales agreement in this State. Except as otherwise provided in this section, the mere ownership, operation, or control of a new equipment dealer by a manufacturer, distributor, or wholesaler is not a violation of this section.","path":["Title 39 - TRADE AND COMMERCE","CHAPTER 6 Fair Practices of Farm, Construction, Industrial, and Outdoor Power Equipment Manufacturers, Distributors, Wholesalers, and Dealers"],"source_url":"https://www.scstatehouse.gov/code/t39c006.php","current_through":"2025 Session of the General Assembly","vintage":"","retrieved_at":"2026-09-02T07:16:39Z","sha256":"0cbbbdb3d88b4fb4224a20ea4bf0d24fe7c8a6f08d7c876997f2499952bff843","source_id":"us-sc","stale":false,"prev":"us-sc/s.c.-code-ann.-39-6-60","next":"us-sc/s.c.-code-ann.-39-6-80"},"notice":"GroundRules: Original legal text. Not legal advice."}