Kentucky Statutes 190.0451 – New motor vehicle dealer license — Prohibition against licensing new dealer after prior dealer’s franchise has been revoked — Exceptions — Ten year duration of prohibition
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(1) Except as provided in subsections (2) and (3) of this section, if a dealer licensed under this chapter has its franchise revoked by the manufacturer on or after January
1, 2009, for grounds other than those provided in KRS Chapter 190, the commission shall not grant a new motor vehicle dealer license establishing a new motor vehicle dealership, or relocating an existing new motor vehicle dealership, within a ten (10) mile radius of a location at which a former licensed new motor vehicle dealer for the same line make of new motor vehicles had its franchise revoked.
(2) If the manufacturer can show proof that the franchise was offered to the original franchisee at substantially similar terms as offered to other potential buyers, and the original franchisee refused the offer, then the prohibition in subsection (1) of this section shall not apply and the commission may grant a new motor vehicle dealer license within the ten (10) mile radius described in subsection (1) of this section.
(3) The prohibition against granting a new motor vehicle dealer license outlined in subsection (1) of this section shall remain in effect for ten (10) years from the date of revocation of the original franchise by the manufacturer.
Effective: July 15, 2010
History: Created 2010 Ky. Acts ch. 84, sec. 1, effective July 15, 2010.
1, 2009, for grounds other than those provided in KRS Chapter 190, the commission shall not grant a new motor vehicle dealer license establishing a new motor vehicle dealership, or relocating an existing new motor vehicle dealership, within a ten (10) mile radius of a location at which a former licensed new motor vehicle dealer for the same line make of new motor vehicles had its franchise revoked.
Terms Used In Kentucky Statutes 190.0451
- Commission: means the Motor Vehicle Commission. See Kentucky Statutes 190.010
- Franchise: means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that purports to fix the legal rights and liabilities of the parties to an agreement or contract, and pursuant to which the dealer purchases and resells the franchise product, along with any addendums to the franchise agreement. See Kentucky Statutes 190.010
- Manufacturer: means any person, partnership, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of new motor vehicles, or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, which is controlled by the manufacturer. See Kentucky Statutes 190.010
- Motor vehicle: means every vehicle intended primarily for use and operation on the public highways that is self-propelled, including low-speed motor vehicles as defined in KRS §. See Kentucky Statutes 190.010
- Motor vehicle dealer: means any person not excluded by subsection (3) of this section, engaged in the business of selling, offering to sell, soliciting, or advertising the same, of new or used motor vehicles, or possessing motor vehicles for the purpose of resale, either on his or her own account, or on behalf of another, either as his or her primary business or incidental thereto. See Kentucky Statutes 190.010
- New motor vehicle: means a vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold to the holders of a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of the make of new vehicle, which is new, and on which the original title has not been issued from the franchised dealer. See Kentucky Statutes 190.010
- New motor vehicle dealer: means a vehicle dealer who holds a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of the manufacturer's new motor vehicles. See Kentucky Statutes 190.010
(2) If the manufacturer can show proof that the franchise was offered to the original franchisee at substantially similar terms as offered to other potential buyers, and the original franchisee refused the offer, then the prohibition in subsection (1) of this section shall not apply and the commission may grant a new motor vehicle dealer license within the ten (10) mile radius described in subsection (1) of this section.
(3) The prohibition against granting a new motor vehicle dealer license outlined in subsection (1) of this section shall remain in effect for ten (10) years from the date of revocation of the original franchise by the manufacturer.
Effective: July 15, 2010
History: Created 2010 Ky. Acts ch. 84, sec. 1, effective July 15, 2010.