(1) A dealership agreement shall:

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Terms Used In Oregon Statutes 650.320

  • Grantor: The person who establishes a trust and places property into it.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC

(a) Contain a provision that the law of this state governs the agreement;

(b) Assign the dealer an area of sales responsibility;

(c) If the dealer is an individual, include the designation of a member of the dealer’s family to succeed to the dealer’s interests in the dealer’s business and dealership agreement upon the dealer’s death, incapacity or retirement; and

(d) Inform the dealer of the dealer’s obligations:

(A) To perform warranty service;

(B) To prepare products for delivery to the consumer; and

(C) To deliver products to the consumer.

(2) Upon a dealer’s request, a grantor shall reconsider the scope of the dealer’s area of sales responsibility once a year.

(3) During the term of a dealership agreement, a grantor may not:

(a) Change the dealer’s area of sales responsibility; or

(b) Authorize another dealer to sell or lease the same line make in the area of sales responsibility.

(4) Subsection (3)(b) of this section does not apply if:

(a) Good cause exists to authorize another dealer in the same area of sales responsibility; and

(b) The area of sales responsibility will support the existing dealer and the new dealer. [2003 c.377 § 3]