South Carolina Code 56-16-50. Compensation of dealer upon termination, nonrenewal, or cancellation of franchise by manufacturer or distributor
(1) new motorcycle inventory which has been acquired from the manufacturer within eighteen months, at a price not to exceed the original manufacturer’s price to the dealer, which has not been altered or damaged, and which has not been driven more than two hundred miles, and for which no certificate of title has been issued;
Terms Used In South Carolina Code 56-16-50
- Distributor: means any person who sells or distributes new motorcycles to motorcycle dealers or who maintains distributor representatives within the State. See South Carolina Code 56-16-10
- Franchise: means the written agreement or contract between any new motorcycle manufacturer, and any new motorcycle dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract, and pursuant to which the dealer purchases and resells the franchised product or leases or rents the dealership premises. See South Carolina Code 56-16-10
- Manufacturer: means any person, resident, or nonresident who manufacturers or assembles new motorcycles, or imports for distribution through distributors of motor vehicles, including any person, partnership, or corporation which acts for and is under the control of a manufacturer or assembler in connection with the distribution of motorcycles and includes distributor and factory branch. See South Carolina Code 56-16-10
- motorcycle dealer: means any person who sells or attempts to effect the sale of any motorcycle. See South Carolina Code 56-16-10
- New motorcycle: means a motorcycle which has not been previously sold to any person except a distributor or wholesaler or motorcycle dealer for resale. See South Carolina Code 56-16-10
- Sale: means the issuance, transfer, agreement for transfer, exchange, pledge, hypothecation, mortgage in any form, whether by transfer in trust or otherwise, of any motorcycle or interest therein or of any franchise related thereto and any option, subscription, or other contract, or solicitation, looking to a sale, or offer or attempt to sell in any form, whether spoken or written. See South Carolina Code 56-16-10
(2) unused, undamaged, and unsold supplies and parts purchased from the manufacturer, at a price not to exceed the original manufacturer’s price to the dealer, if the supplies and parts are currently offered for sale by the manufacturer or distributor in its current parts catalogs and are in salable condition;
(3) equipment and furnishings which have not been altered or damaged and which have been required by the manufacturer or distributor to be purchased by the new motorcycle dealer from the manufacturer or distributor, or their approved sources;
(4) special tools which have not been altered or damaged and which have been required by the manufacturer or distributor to be purchased by the new motorcycle dealer from the manufacturer or distributor, or their approved sources, within five years immediately preceding the termination, nonrenewal, or cancellation of the franchise.
(b) Fair and reasonable compensation for the above must be paid by the manufacturer within ninety days of the effective date of termination, cancellation, or nonrenewal, if the new motorcycle dealer has clear title to the inventory and has conveyed title and possession to the manufacturer.