This law requires manufacturers or distributors to repurchase motorcycles, parts, and equipment from dealers if a franchise agreement is involuntarily discontinued, canceled, or not renewed. The repurchase must occur within 60 days and includes vehicles sold within the last 180 days, as well as unused parts and accessories if requested by the dealer. The law ensures dealers are fairly compensated and protected during such franchise terminations.
The obligation is triggered when a franchise agreement is involuntarily discontinued, canceled, or not renewed by the manufacturer or distributor.
The manufacturer must repurchase vehicles, parts, and equipment within 60 days from the effective date of the discontinuation, cancellation, or nonrenewal.
Eligible vehicles include new, unused, undamaged motorcycles, all-terrain vehicles, or off-road motorcycles of the current or previous model year sold within 180 days prior to notice of termination.
Yes, if requested within the 60-day period, the manufacturer must also repurchase all genuine, unused parts and accessories sold to the dealer, provided they are undamaged and in original packaging.