(a) Upon termination by the manufacturer or distributor, the manufacturer or distributor shall compensate the new motor vehicle dealer for new motor vehicle dealer facilities a sum equivalent to the

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Terms Used In Alaska Statutes 45.25.150

  • 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.
  • Conviction: A judgement of guilt against a criminal defendant.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • 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
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(1) rent for the unexpired term of the lease or 18 months, whichever period is shorter, if the new motor vehicle dealer is leasing the new motor vehicle dealership facilities from a lessor other than the manufacturer or distributor; or
(2) reasonable rental value of the new motor vehicle dealership facilities for 18 months or until the facilities are leased or sold, whichever period is shorter, if the new motor vehicle dealer owns the new motor vehicle dealership facilities; the sum may be paid in monthly installments at the election of the manufacturer or distributor.
(b) This section does not relieve a new motor vehicle dealer of the obligation to mitigate

(1) damages under a lease, prevent a manufacturer from occupying and using the new motor vehicle dealer’s facilities while paying rent, or preclude a manufacturer from negotiating a lease termination, sublease, or new lease; or
(2) the costs of the relocation, substantial alteration, and remodeling of the new motor vehicle dealer’s facilities for which payments are required under (f) of this section.
(c) This section does not apply to a termination for

(1) insolvency of the new motor vehicle dealer or the filing of any petition by or against the new motor vehicle dealer under a bankruptcy or receivership law;
(2) failure of the new motor vehicle dealer to conduct its customary sales and service operations during its customary business hours for seven consecutive business days;
(3) conviction of the new motor vehicle dealer or its principal owners of a felony or a misdemeanor regardless of the punishment if the crime involves theft, dishonesty, or false statement;
(4) revocation of a license required for the new motor vehicle dealer to operate; or
(5) a fraudulent misrepresentation by the new motor vehicle dealer to the manufacturer or distributor that is material to the new motor vehicle dealer’s agreement.
(d) The payment required under (a) of this section is only required to the extent that the facilities were used for activities under the franchise agreement and only to the extent the facilities were not leased for unrelated purposes.
(e) If payment under (a) of this section is made, the manufacturer or distributor is entitled to possession and use of the new motor vehicle dealership facilities for the period for which the payment is paid.
(f) In addition to the payment required under Alaska Stat. § 45.25.140 and (a) of this section, upon termination of a franchise agreement by the manufacturer under this chapter, the manufacturer shall, at the request and option of the new motor vehicle dealer, pay the new motor vehicle dealer the new motor vehicle dealer’s cost for a relocation, substantial alteration, or remodeling of the new motor vehicle dealer’s facilities to the extent used for the manufacturer’s franchise, if

(1) the manufacturer required the relocation, substantial alteration, or remodeling of the new motor vehicle dealer’s facilities for a continuation or renewal of the franchise agreement; and
(2) the relocation, substantial alteration, or remodeling of the new motor vehicle dealer’s facilities was completed within three years before the termination or is in process when the new motor vehicle dealer receives the notice of termination.
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