13-35-304. Hearing regarding termination, relocation, or establishment of
franchises.
(1) (a) Within ten days of receiving an application from a franchisee under Subsection
13-35-301(3) challenging its franchisor's right to terminate or not continue a franchise, or an
application under Subsection 13-35-302(1) challenging the establishment or relocation of a
franchise, the executive director shall:
(i) enter an order designating the time and place for the hearing; and
(ii) send a copy of the order by certified or registered mail, with return receipt requested,
or by any form of reliable delivery through which receipt is verifiable to:
(A) the applicant;
(B) the franchisor; and
(C) if the application involves the establishment of a new franchise or the relocation of
an existing dealership, to all franchisees in the relevant market area engaged in the business of
offering to sell or lease the same line-make.
(b) A copy of an order mailed under Subsection (1)(a) shall be addressed to the
franchisee at the place where the franchisee's business is conducted.
(2) Any person who can establish an interest in the application may intervene as a party
to the hearing, whether or not that person receives notice.
(3) Any person may appear and testify on the question of the public interest in the
termination or noncontinuation of a franchise or in the establishment of an additional franchise.
(4) (a) (i) Any hearing ordered under Subsection (1) shall be conducted no later than 120
days after the application for hearing is filed.
(ii) A final decision on the challenge shall be made by the executive director no later than
30 days after the hearing.
(b) Failure to comply with the time requirements of Subsection (4)(a) is considered a
determination that the franchisor acted with good cause or, in the case of a protest of a proposed
establishment or relocation of a dealer, that good cause exists for permitting the proposed
additional or relocated new motor vehicle dealer, unless:
(i) the delay is caused by acts of the franchisor or the additional or relocating franchisee;
or
(ii) the delay is waived by the parties.
(5) The franchisor has the burden of proof to establish that under this chapter it should be
granted permission to:
(a) terminate or not continue the franchise;
(b) enter into a franchise agreement establishing an additional franchise; or
(c) relocate the dealership of an existing franchisee.
Amended by Chapter 268, 2005 General Session
Download Code Section Zipped WordPerfect 13_35_030400.ZIP 2,904 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 28, 2009