Oregon Revised Statutes Chapter 650 § 650.161 — Compensation for repairs to vehicles subject to recall; claims for
Oregon Revised Statutes Chapter 650 ·
Oregon Code § 650.161·Enacted ·Last updated March 01, 2026
Statute Text
Compensation for repairs to vehicles subject to recall; claims for
compensation; prohibited practices; exclusivity of remedy.
(1) As used in this section:
(a) Do not drive
order means a notice in which a manufacturer advises owners of a vehicle not
to drive the vehicle until the owner has obtained a repair for a safety defect
in the vehicle.
(b) Stop sale
order means a notice in which a manufacturer prohibits a franchisee from
leasing or selling at wholesale or retail a vehicle in the franchisees
inventory because of a federal recall for a safety defect or a failure to
comply with a federal safety standard or a federal emissions standard.
(c) Valuation
means the average trade-in value shown in an independent third-party guide for
the year, make and model of a vehicle.
(2) A
manufacturer shall compensate the manufacturers franchisees for all labor and
parts the manufacturer requires the franchisees to use to perform repairs on
vehicles that are subject to a recall. The manufacturer shall compensate
franchisees in accordance with the standards and process for compensation set
forth in ORS 650.158.
(3)(a) Subject to
the conditions set forth in paragraphs (b) and (c) of this subsection, a
manufacturer shall compensate a dealer at a prorated rate of least 1.5 percent
of the valuation of a vehicle that is subject to a recall during each month in
which the dealer holds the vehicle for sale while awaiting parts or a remedy
that is necessary to repair or service the vehicle.
(b) The
manufacturer shall pay the compensation described in paragraph (a) of this
subsection:
(A) If the
vehicle is subject to a federal recall for a safety defect or a failure to
comply with a federal safety standard or a federal emissions standard;
(B) If the
manufacturer issued a do not drive order or stop sale order for the vehicle;
(C) If the
manufacturer has authorized the dealer to sell and service new vehicles of the
same line-make as the vehicle that is subject to the recall;
(D) If the dealer
had the vehicle in the dealers inventory at the time the manufacturer issued
the do not drive order or stop sale order or if the dealer received the vehicle
as a trade-in as part of a consumers purchase of another vehicle after the
manufacturer issued the do not drive order or stop sale order;
(E) If a part or
remedy necessary to repair or service the vehicle is not reasonably available
within 30 days after the manufacturer issued an initial recall notice; and
(F) For a period
that begins 30 days after the date on which the manufacturer issued the do not
drive order or stop sale order and that ends on the earlier of the following
dates:
(i) The date on
which the manufacturer makes available to the dealer a part or remedy that is
necessary to repair the vehicle that is subject to the recall; or
(ii) The date on
which the dealer sells, trades or otherwise disposes of the vehicle that is
subject to the recall.
(c) A
manufacturer may direct the manner and method by which a dealer must
demonstrate that the dealer had a vehicle that was subject to a recall in the
dealers inventory as required under paragraph (b)(D) of this subsection. The
manufacturer may not require a demonstration that is unreasonable or unduly
burdensome or require information that is unreasonably or unduly burdensome for
the dealer to provide.
(d) This
subsection does not require a manufacturer to provide total compensation to a
dealer that exceeds the valuation of a vehicle that is subject to a recall.
(4) A claim for
compensation that a franchisee makes under subsection (2) of this section or
that a dealer makes under subsection (3) of this section is subject to the same
requirements and limitations to which a claim for compensation under ORS
Plain English Explanation
This Oregon statute addresses Compensation for repairs to vehicles subject to recall; claims for
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Key Points
01Part of Oregon statutory law
02Referenced as Oregon Code § 650.161
03Subject to legislative amendments
04Consult a licensed attorney for application to specific cases
Frequently Asked Questions
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