New Jersey § 56:10-13

§ 56:10-13.

a. It shall be a violation of the “Franchise Practices Act,” P.L.1971, c. 356 ( C.56:10-1 et seq. ) for any motor vehicle franchisor, directly or indirectly, through any officer, agent

or employee, to terminate, cancel or fail to renew a motor vehicle franchise as the

result of: (1) any change in the ownership, operation or control of all or any part of the franchisor's

business, whether by sale or transfer of the assets, corporate stock or other equity

interest; assignment; merger; consolidation; combination; reorganization; restructuring;

redemption; operation of law or otherwise; or (2) the termination, suspension or cessation of all or any part of the franchisor's

business operations due to the discontinuance of a line make or otherwise , unless the franchisor complies with the provisions of subsections b., c., d. and

e. of this section or unless the franchisor, or another motor vehicle franchisor,

pursuant to an agreement with the franchisor, offers the franchisee a replacement

motor vehicle franchise which takes effect no later than the date of the termination,

cancellation or nonrenewal of the franchisee's existing motor vehicle franchise. b. Within 90 days of the effective date of the termination, cancellation or nonrenewal,

the motor vehicle franchisor shall compensate the motor vehicle franchisee in an amount

at least equivalent to the fair market value of the motor vehicle franchise on (1) the day before the date the franchisor announces the action which results in the termination, cancellation

or nonrenewal; or (2) the date on which the notice of termination, cancellation or nonrenewal is issued,

whichever amount is higher. c. The franchisor shall authorize the franchisee to continue servicing and supplying

parts, including service and parts pursuant to a warranty issued by the franchisor,

for any goods or services marketed by the franchisee pursuant to the motor vehicle

franchise for a period of not less than five years from the effective date of the

termination, cancellation or nonrenewal and shall continue to reimburse the franchisee

for warranty parts and service in an amount and on terms no less favorable than those

in effect prior to the termination, cancellation or nonrenewal and in accordance with

section 3 of P.L.1977, c. 84 ( C.56:10-15 ). d. The franchisor shall continue to supply the franchisee with replacement parts for

any goods or services marketed by the franchisee pursuant to the motor vehicle franchise

for a period of not less than five years from the effective date of the termination,

cancellation or nonrenewal, at the same price and terms as the franchisor supplied

them to the remaining franchisees of the franchisor, or if there are no such remaining

franchisees, at a price and on terms no less favorable than those in effect prior

to the termination, cancellation or nonrenewal. e. If the franchisee continues to service motor vehicles and sell parts after the

termination, cancellation or nonrenewal, as provided for in subsections c. and d.

of this section, the compensation paid to the franchisee pursuant to subsection b.

of this section shall be reduced to the extent, if any, of the fair market value of

such rights as of the effective date of the termination, cancellation or nonrenewal.