Montana Code 61-4-132. Right of designated family member to succeed in dealership ownership
61-4-132. Right of designated family member to succeed in dealership ownership. (1) Any designated family member of a retiring, deceased, or incapacitated dealer may succeed the dealer in the ownership or operation of the dealership under the existing franchise or distribution agreement upon the retiring dealer or the family member of a deceased or incapacitated dealer giving the manufacturer, factory branch, distributor, or importer of new motor vehicles written notice of the intention to succeed the dealer in the ownership or operation of the dealership within 120 days prior to the dealer’s expected date of retirement or within 120 days after the death or incapacity of the dealer. The manufacturer, factory branch, distributor, or importer may refuse to honor the notice of succession only for good cause in the manner provided for in 61-4-133.
Terms Used In Montana Code 61-4-132
- Dealer: means a person that, for commission or profit, engages in whole or in part in the business of buying, selling, exchanging, or accepting on consignment new or used motor vehicles, trailers, semitrailers, pole trailers, travel trailers, motorboats, sailboats, snowmobiles, off-highway vehicles, or special mobile equipment that is not registered in the name of the person. See Montana Code 61-1-101
- Designated family member: means the spouse, child, grandchild, parent, brother, or sister of a new motor vehicle dealer, as defined in 61-4-201, who:
(i)in the case of a deceased dealer:
(A)is entitled to inherit the dealer's ownership interest in the dealership under the terms of the dealer's will or under the laws of intestate succession of this state; or
(B)has otherwise been designated in writing by a deceased dealer to succeed the deceased in the motor vehicle dealership; or
(ii)in the case of an incapacitated dealer, has been appointed by a court as the legal representative of the dealer's property. See Montana Code 61-4-131
- Manufacturer: includes any person engaged in the manufacture of motor vehicles, trailers, semitrailers, pole trailers, travel trailers, motorboats, sailboats, snowmobiles, or off-highway vehicles as a regular business. See Montana Code 61-1-101
- Motor vehicle: means :
(i)a vehicle propelled by its own power and designed or used to transport persons or property on the highways of the state;
(ii)a quadricycle if it is equipped for use on the highways as prescribed in chapter 9; or
(iii)a golf cart only if it is equipped for use on the highways as prescribed in chapter 9 and is operated pursuant to 61-8-391 or by a person with a low-speed restricted driver's license. See Montana Code 61-1-101
(2)The manufacturer, factory branch, distributor, or importer may request, and the designated family member shall provide, on request, personal and financial data that is reasonably necessary to determine whether the succession should be honored. The designated family member must meet the manufacturer’s, factory branch’s, distributor’s, or importer’s reasonable, uniformly applied written requirements to be a dealer. If the designated family member lacks experience required to meet those requirements, then the manufacturer shall allow the successor a reasonable amount of time to meet those requirements provided that during the period, the successor employs an individual who is qualified and experienced as a general manager to manage the day-to-day operations of the motor vehicle dealership.