Transfer of Owner’s Interest Upon Death
A manufacturer may not prevent a dealership owner from transferring his ownership interest in the dealership to his heirs upon death. See Cal. Vehicle Code § 11713.3(j).
A manufacturer may not prevent a dealership owner from transferring his ownership interest in the dealership to his heirs upon death. See Cal. Vehicle Code § 11713.3(j).
It is unlawful for a manufacturer to prevent a dealer from adding another line-make to an existing facility, so long as the franchisor's facilities and capital requirements are met. See Cal. Vehicle Code § 11713.13(a).
A franchisor has the right to approve a dealer operator, but has no authority to determine a dealer’s executive management. See Cal. Vehicle Code § 11713.3(c).
Manufacturers may not interfere with the choices made by a dealer relating to the dealership’s capital structure and financing. See Cal. Vehicle Code § 11713.3(b).
A manufacturer may not require a dealership shareholder to sell his interest in the entity. Likewise, a manufacturer may not prevent a shareholder from selling his non-controlling interest in the dealership. See Cal. Vehicle Code § 11713.3(d)(1).
Franchisors are prohibited from interfering with a dealer’s right to receive the fair value of the franchised business upon sale. See Cal. Vehicle Code § 11713.3(e).
After submitting an application for buy-sell approval, a franchisor must notify the dealer of approval or disapproval within 60 days. See Cal. Vehicle Code § 11713.3(d)(2)(B).
If a franchisor disapproves a dealer’s buy-sell application, the burden in on the franchisor to demonstrate the disapproval was reasonable. See Cal. Vehicle Code § 11713.3(d)(3).
A franchisor may exercise a right of first refusal when a dealer submits a buy-sell application. See Cal. Vehicle Code § 11713.3(t).
Dealers of the same line-make are prohibited from competing within the relevant market area, spanning a 10 mile radius. See Cal. Vehicle Code § 11713.3(o).