§ 31-5.1-1 - Definitions.
SECTION 31-5.1-1
§ 31-5.1-1 Definitions. – The following words and phrases, for the purposes of this chapter, have thefollowing meanings:
(1) "Designated family member" means the spouse, child,grandchild, parent, brother, or sister of the owner of a new motor vehicledealership who, in the case of the owner's death, is entitled to inherit theownership interest in the new motor vehicle dealership under the terms of theowner's will, or who has been nominated in any other written instrument, orwho, in the case of an incapacitated owner of a new motor vehicle dealership,has been appointed by a court as the legal representative of the new motorvehicle dealer's property.
(2) "Distributor" means any person, firm, association,corporation, or trust, resident or nonresident, who in whole or in part offersfor sale, sells, or distributes any new motor vehicle to new motor vehicledealers, who maintains factory representatives or who controls any person,firm, association, corporation or trust, resident or nonresident, who in wholeor in part offers for sale, sells or distributes any new motor vehicle to newmotor vehicle dealers.
(3) "Established place of business" means a permanent,commercial building located within this state, easily accessible and open tothe public at all reasonable times, and at which the business of a new motorvehicle dealer, including the display and repair of vehicles, may be lawfullycarried on in accordance with the terms of all applicable building codes,zoning, and other land-use regulatory ordinances.
(4) "Factory branch" means a branch office maintained by amanufacturer for the purpose of selling, or offering for sale, vehicles to adistributor or new motor vehicle dealer, or for directing or supervising inwhole or in part factory or distributor representatives.
(5) "Franchise" means the agreement or contract between anynew motor vehicle manufacturer, written or otherwise, and any new motor vehicledealer which purports to fix the legal rights and liabilities of the parties tothat agreement or contract, and pursuant to which the dealer purchases andresells the franchise product or leases or rents the dealership premises.
(6) "Fraud" includes, in addition to its normal legalconnotation, the following: a misrepresentation in any manner, whetherintentionally false or due to gross negligence, of a material fact; a promiseor representation not made honestly and in good faith; and an intentionalfailure to disclose a material fact.
(7) "Good faith" means honesty in fact and the observation ofreasonable commercial standards of fair dealing in the trade as defined andinterpreted in § 6A-2-103(1)(b).
(8) "Manufacturer" means any person, partnership, firm,association, corporation, or trust, resident or nonresident, who manufacturesor assembles new motor vehicles, or imports for distribution throughdistributors of motor vehicles, or any partnership, firm, association, jointventure, corporation, or trust, resident or nonresident, which is controlled bythe manufacturer.
(9) "Motor vehicle" means every vehicle intended primarilyfor use and operation on the public highways which is self-propelled, notincluding farm tractors and other machines and tools used in the production,harvesting, and care of farm products.
(10) "New motor vehicle" means a vehicle which has been soldto a new motor vehicle dealer and which has not been used for other thandemonstration purposes and on which the original title has not been issued fromthe new motor vehicle dealer. The term "motor vehicle" also includes anyengine, transmission, or rear axle, regardless of whether it is attached to avehicle chassis, that is manufactured for installation in any motor-drivenvehicle with a gross vehicle weight rating of more than sixteen thousand(16,000) pounds that is required to be registered.
(11) "New motor vehicle dealer" means any person engaged inthe business of selling, offering to sell, soliciting, or advertising the saleof new motor vehicles and who holds, or held at the time a cause of actionunder this chapter accrued, a valid sales and service agreement, franchise, orcontract, granted by the manufacturer or distributor for the retail sale ofthat manufacturer's or distributor's new motor vehicles.
(12) "Person" means a natural person, corporation,partnership, trust, or other entity, and, in case of an entity, it includes anyother entity in which it has a majority interest or effectively controls, aswell as the individual officers, directors, and other persons in active controlof the activities of that entity.
(13) "Relevant market area" means the area within a radius oftwenty (20) miles around an existing dealer or the area of responsibilitydefined in the franchise, whichever is greater.