Oregon Revised Statutes Chapter 650 § 650.130 — Prohibited conduct by manufacturer, distributor or importer

Prohibited conduct by manufacturer, distributor or importer. Notwithstanding the terms of any franchise or other agreement, a manufacturer, distributor or importer may not: (1) Require or attempt to require a dealer to accept delivery of any motor vehicle, part, accessory or any other commodity that the dealer did not voluntarily order. This subsection does not apply to recall safety and emissions campaign parts that the dealer did not voluntarily order or to any vehicle features, parts, accessories or other components mandated by federal, state or local law. (2) Coerce or attempt to coerce a dealer to enter into any agreement or sales promotion program by threatening to cancel the dealer’s franchise. (3) Refuse or fail to deliver, within a reasonable time and in a reasonable quantity, any new motor vehicle, part or accessory covered by the franchise if the manufacturer, distributor or importer advertises the vehicle, part or accessory as available for delivery or is delivering the vehicle, part or accessory to another dealer. This subsection does not apply if the failure to deliver results from a cause beyond the control of the manufacturer, distributor or importer. (4) Prevent or attempt to prevent a dealer from making reasonable changes in a dealership’s capital structure or the means by which a dealer finances the dealership, provided that the dealer meets any reasonable capital requirement of the manufacturer, distributor or importer. (5) Unreasonably refuse to compensate a dealer for work or services the dealer performed and expenses the dealer incurred in accordance with the dealer’s delivery, preparation and warranty obligations under the terms of a franchise or agreement. (6) Coerce or attempt to coerce a dealer to participate monetarily in any advertising campaign or contest, or to purchase any promotional materials, display devices or display decorations or materials at the dealer’s expense. (7) Establish a maximum price a dealer may charge for motor vehicles with a gross vehicle weight rating of less than 8,500 pounds. (8) Initiate an audit to determine the validity of paid claims for dealer compensation, or for any charge-backs for warranty parts, service compensation or consumer or dealer incentives, more than one year following the date of payment unless the manufacturer, distributor or importer has reasonable grounds to believe that the dealer submitted a fraudulent claim. If a manufacturer, distributor or importer initiates an audit more than one year following the date of payment, the manufacturer, distributor or importer may charge back to the dealer only the amount of a claim that the manufacturer, distributor or importer proves was fraudulent. Parties shall cooperate to ensure that permitted audits conclude not more than 60 days after the audits begin. (9) Unfairly compete with a dealer in any matters the franchise governs including, but not limited to, the sale or allocation of vehicles or other franchisor products, or the execution of dealer programs or benefits. This subsection applies if the manufacturer, distributor or importer has an ownership interest in, operates or controls, directly or indirectly, a business that is a dealer in this state. (10) Implement or modify a system for selling or leasing motor vehicles that does not: (a) Use customer dealer selection or other objective criteria to allocate the motor vehicles, if the manufacturer, distributor or importer designs or controls the system; and (b) Make available to dealers a description of the rules and requirements for making reservations through the system, or changes to the rules and requirements, at least 30 days before implementing the system or making the change. (11) Have an ownership interest in, operate or control, directly or indirectly, a business that sells or leases a motor vehicle to a person in this state except to a franchisee of the manufacturer, distributor or importer. A manufacturer, distributor or importer does not violate this subsection if: (a) The manufacturer, distributor or importer: (A) Has an ownership interest in, operates or controls, directly or indirectly, a business that is a dealership in this state and is a business that: (i) A franchisee owned, operated or controlled before the manufacturer, distributor or importer acquired the ownership interest in or began to operate or control the business; (ii) The manufacturer, distributor or importer maintains an ownership interest in, operates or controls for no more than two years; and (iii) The manufacturer, distributor or importer offers for sale to a qualified independent person at a fair and reasonable price while the manufacturer, distributor or importer maintains an ownership interest in, operates or controls the business. (B) Has a part ownership interest in, operates or controls, directly or indirectly, a business that is a dealership in this state and another person: (i) Man