Utah § 13-14-305 - Evidence to be considered in determining cause to terminate or discontinue.
Full text of Utah Utah Code § 13-14-305 — Evidence to be considered in determining cause to terminate or discontinue., with citation guidance and answers to common questions.
§ 13-14-305. Evidence to be considered in determining cause to terminate or discontinue.
Effective 10/1/2024 13-14-305.
Evidence to be considered in determining cause to terminate or discontinue.
(1)
In determining whether a franchisor has established good cause for terminating or not continuing a franchise agreement, the executive director shall consider:
(a)
the amount of business transacted by the franchisee, as compared to business available to the franchisee;
(b)
the investment necessarily made and obligations incurred by the franchisee in the performance of the franchisee's part of the franchise agreement;
(c)
the permanency of the investment;
(d)
whether it is injurious or beneficial to the public welfare or public interest for the business of the franchisee to be disrupted;
(e)
whether the franchisee has adequate motor vehicle sales and service facilities, equipment, vehicle parts, and qualified service personnel to reasonably provide for the needs of the consumer for the new motor vehicles handled by the franchisee and has been and is rendering adequate services to the public;
(f)
whether the franchisee refuses to honor warranties of the franchisor under which the warranty service work is to be performed pursuant to the franchise agreement, if the franchisor reimburses the franchisee for the warranty service work;
(g)
failure by the franchisee to substantially comply with those requirements of the franchise agreement that are determined by the executive director to be:
(i)
reasonable;
(ii)
material; and
(iii)
not in violation of this chapter;
(h)
evidence of bad faith by the franchisee in complying with those terms of the franchise agreement that are determined by the executive director to be:
(i)
reasonable;
(ii)
material; and
(iii)
not in violation of this chapter;
(i)
prior misrepresentation by the franchisee in applying for the franchise;
(j)
transfer of any ownership or interest in the franchise without first obtaining approval from the franchisor or the executive director; and
(k)
any other factor the executive director considers relevant.
(2)
Notwithstanding any franchise agreement, the following do not constitute good cause, as used in this chapter for the termination or noncontinuation of a franchise:
(a)
the sole fact that the franchisor desires greater market penetration or more sales or leases of new motor vehicles;
(b)
the change of ownership of the franchisee's dealership or the change of executive management of the franchisee's dealership unless the franchisor proves that the change of ownership or executive management will be substantially detrimental to the distribution of the franchisor's motor vehicles; or
(c)
the fact that the franchisee has justifiably refused or declined to participate in any conduct covered by Section 13-14-201.
(3)
For purposes of Subsection (2), "substantially detrimental" includes the failure of any proposed transferee to meet the objective criteria applied by the franchisor in qualifying franchisees at the time of application.
Section 13-14-305 ("Evidence to be considered in determining cause to terminate or discontinue.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 13-14-305?
A common citation format is "Utah Code § 13-14-305" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 13-14-305 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
