Utah Code 13-14-302.5. Application of new franchise process with respect to certain terminated franchises
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(1) As used in this section:
Terms Used In Utah Code 13-14-302.5
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Dealership: means a site or location in this state:(5)(a) at which a franchisee conducts the business of a new motor vehicle dealer; and(5)(b) that is identified as a new motor vehicle dealer's principal place of business for licensing purposes under Section 41-3-204. See Utah Code 13-14-102
- Franchisee: means a person with whom a franchisor has agreed or permitted, in writing or in practice, to purchase, sell, or offer for sale new motor vehicles manufactured, produced, represented, or distributed by the franchisor. See Utah Code 13-14-102
- Franchisor: means a person who has, in writing or in practice, agreed with or permits a franchisee to purchase, sell, or offer for sale new motor vehicles manufactured, produced, assembled, represented, or distributed by the franchisor, and includes:
(11)(a) the manufacturer, producer, assembler, or distributor of the new motor vehicles;(11)(b) an intermediate distributor; and(11)(c) an agent, officer, or field or area representative of the franchisor. See Utah Code 13-14-102- Line-make: means :
(13)(a) for other than a recreational vehicle, the motor vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor; or(13)(b) for a recreational vehicle, a specific series of recreational vehicle product that:(13)(b)(i) is identified by a common series trade name or trademark;(13)(b)(ii) is targeted to a particular market segment, as determined by decor, features, equipment, size, weight, and price range;(13)(b)(iii) has a length and floor plan that distinguish the recreational vehicle from other recreational vehicles with substantially the same decor, features, equipment, size, weight, and price;(13)(b)(iv) belongs to a single, distinct classification of recreational vehicle product type having a substantial degree of commonality in the construction of the chassis, frame, and body; and(13)(b)(v) a franchise agreement authorizes a dealer to sell. See Utah Code 13-14-102- Person: means :
(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5- Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
(1)(a) “Covered franchisee”:(1)(a)(i) means a person who was a franchisee under a pre-bankruptcy franchise; and(1)(a)(ii) is a “covered dealership,” as that term is defined in the federal franchise arbitration law.(1)(b) “Covered franchisor”:(1)(b)(i) means a person who was a franchisor under a pre-bankruptcy franchise; and(1)(b)(ii) is a “covered manufacturer,” as that term is defined in the federal franchise arbitration law.(1)(c) “Federal franchise arbitration law” means Section 747 of the Consolidated Appropriations Act of 2010, Pub. L. No. 111-117.(1)(d) “New franchisor”:(1)(d)(i) means a person who is a franchisor of the same line-make as the franchisor under a pre-bankruptcy franchise that has become a terminated franchise; and(1)(d)(ii) is a “covered manufacturer,” as that term is defined in the federal franchise arbitration law.(1)(e) “Pre-bankruptcy franchise” means a franchise in effect as of October 3, 2008.(1)(f) “Reinstated franchise” means:(1)(f)(i) a terminated franchise that a reinstatement order determines should be reinstated, renewed, continued, assigned, or assumed; or(1)(f)(ii) a franchise that a reinstatement order otherwise determines should be reestablished in or added to the dealer network of a new franchisor in the geographic area where the covered franchisee was located before October 3, 2008.(1)(g) “Reinstated franchisee” means a covered franchisee:(1)(g)(i) whose franchise became a terminated franchise with less than 90 days’ notice prior to termination; and(1)(g)(ii) that becomes entitled to a reinstated franchise under a reinstatement order.(1)(h) “Reinstatement order” means an arbitrator’s written determination:(1)(h)(i) in an arbitration proceeding held under the federal franchise arbitration law; and(1)(h)(ii)(1)(h)(ii)(A) that a terminated franchise should be reinstated, renewed, continued, assigned, or assumed; or(1)(h)(ii)(B) that a covered franchisee should otherwise be reestablished as a franchisee in or added to the dealer network of a new franchisor in the geographic area where the covered franchisee was located before October 3, 2008.(1)(i) “Terminated franchise” means a covered franchisee’s pre-bankruptcy franchise that was terminated or not continued or renewed as a result of a bankruptcy proceeding involving a covered franchisor as the bankruptcy debtor.(2) The process under Sections 13-14-302, 13-14-304, and 13-14-306 for the issuance of a franchise, including Subsections 13-14-302(5) and (6) and Section 13-14-304 relating to a protest by another franchisee in the line-make in the relevant market area against the establishment or relocation of a franchise, does not apply to a reinstated franchise or reinstated franchisee.