New Automobile Franchise Act

The New Automobile Franchise Act was enacted to protect the welfare and economic interest of the State pertaining to the sale of "motor vehicles". The Act is regulated under the auspices of the Utah Department of Commerce. The "motor vehicle" definition includes trailers, semi-trailers and recreational vehicles; it does not include motorcycles.

The Act creates the "Utah Motor Vehicle Franchise Advisory Board" and clarifies the duties of a franchisor and franchisee. It requires that manufacturers or franchisors notify the Department and any existing franchisees of the same line-make in a given relevant market area of any intent to terminate, establish, or relocate a franchise dealership selling new motor vehicles. If existing franchisees protest the franchisor's proposed action, the Department is mandated to hold a hearing to determine whether good cause exists for such action. The Act requires that franchisors and franchisees pay an annual registration fee, as determined by the Board and the Department of Commerce, to cover the cost of regulation.

For further information, please contact:
Masuda Medcalf, Administrative Law Judge (801) 530-7663.

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