Nebraska Statutes 60-1429. Franchise; termination; noncontinuation; change community; additional dealership; actsnot constituting good cause
Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the following shall not constitute good cause, as used in sections 60-1420 and 60-1422, for the termination or noncontinuation of a franchise, for changing the franchisee‘s community, or for entering into a franchise for the establishment of an additional dealership in a community for the same line-make:
Terms Used In Nebraska Statutes 60-1429
- Community: means a franchisee's area of responsibility as stipulated in the franchise or, if the franchise fails to designate a community, (1) the community of the franchisee is the area surrounding the location of the franchisee in a five-mile radius from the dealership if the location is within a city of the metropolitan class and (2) the community of the franchisee is the county in which the franchisee is located if the location is not within a city of the metropolitan class. See Nebraska Statutes 60-1401.09
- Franchise: means a contract between two or more persons when all of the following conditions are included:
(1) A commercial relationship of definite duration or continuing indefinite duration is involved. See Nebraska Statutes 60-1401.19
- Franchisee: means a new motor vehicle dealer who receives motor vehicles from the franchisor under a franchise and who offers and sells such motor vehicles to the general public. See Nebraska Statutes 60-1401.20
- Franchisor: means a person who manufactures or distributes motor vehicles and who may enter into a franchise. See Nebraska Statutes 60-1401.21
- Line-make: means a collection of models, series, or groups of motor vehicles manufactured by or for a particular manufacturer, distributor, or importer that are offered for sale, lease, or distribution pursuant to a common brand name or mark, except that:
(1) Multiple brand names or marks may constitute a single line-make, but only when included in a common dealer agreement and the manufacturer, distributor, or importer offers such vehicles bearing the multiple names or marks together only, and not separately, to its authorized dealers. See Nebraska Statutes 60-1401.22
- Motor vehicle: means any vehicle for which evidence of title is required as a condition precedent to registration under the laws of this state but does not include trailers. See Nebraska Statutes 60-1401.25
- Motorcycle: means every motor vehicle, except a tractor, having a seat or saddle for use of the rider and designed to travel on not more than three wheels in contact with the ground and for which evidence of title is required as a condition precedent to registration under the laws of this state. See Nebraska Statutes 60-1401.28
- Trailer: means semitrailers and trailers as defined in sections Nebraska Statutes 60-1401.36
(1) The sole fact that the franchisor desires further penetration of the market;
(2) The change of ownership of the franchisee’s dealership or the change of executive management of the franchisee’s dealership unless the franchisor, having the burden of proof, proves that such change of ownership or executive management will be substantially detrimental to the distribution of the franchisor’s motor vehicles, combination motor vehicles and trailers, motorcycles, or trailer products or to competition in the community. Substantially detrimental may include, but is not limited to, the failure of any proposed transferee or individual to meet the current criteria generally applied by the franchisor in qualifying new motor vehicle dealers; or
(3) The fact that the franchisee refused to purchase or accept delivery of any motor vehicle, combination motor vehicle and trailer, motorcycle, trailer, vehicle parts or accessories, or other commodity or service not ordered by the franchisee.