61-4-201. Definitions. As used in this part, the following definitions apply unless the context clearly indicates otherwise:
(1) "Community" means the relevant market area of a franchise. For the purposes of this part, the relevant market area of a franchise is the county or counties in which the franchisee is located.
(2) "Distribute" means to sell new motor vehicles other than at retail or to enter into a franchise agreement authorizing a dealer to buy new motor vehicles for resale or to service motor vehicles under a manufacturer's or distributor's warranty.
(3) "Distributor" or "wholesaler" means a person who sells or distributes a line-make of new motor vehicles to new motor vehicle dealers in this state or who maintains distributor representatives in this state.
(4) "Distributor branch" means a branch office maintained or availed of by a distributor or wholesaler for the sale of a line-make of new motor vehicles to new motor vehicle dealers in this state for directing or supervising its representatives in this state.
(5) "Factory branch" means a branch office maintained or availed of by a manufacturer for the sale of a line-make of new motor vehicles to distributors or for the sale of new motor vehicles to new motor vehicle dealers in this state or for directing or supervising its representatives in this state.
(6) "Franchise" means a contract and any agreed-to amendments between or among two or more persons when all of the following conditions are included:
(a) a commercial relationship of definite duration or continuing indefinite duration is involved;
(b) the franchisee is granted the right to:
(i) offer, sell, and service in this state new motor vehicles manufactured or distributed by the franchisor; or
(ii) service motor vehicles pursuant to the terms of a franchise and a manufacturer's warranty;
(c) the franchisee, as an independent and separate business, constitutes a component of the franchisor's distribution system; and
(d) the operation of the franchisee's business is substantially reliant on the franchisor for the continued supply of new motor vehicles, parts, and accessories.
(7) "Franchisee" means a person who receives new motor vehicles from the franchisor under a franchise and who offers, sells, and services the new motor vehicles to and for the general public.
(8) "Franchisor" means a person who manufactures, imports, or distributes new motor vehicles and who may enter into a franchise.
(9) "Importer" means a person who transports or arranges for the transportation of a foreign manufactured new motor vehicle into the United States for sale in this state.
(10) "Line-make" means vehicles that are offered for sale, lease, or distribution under a common name, trademark, or service mark.
(11) "Manufacturer" means a person who manufactures or assembles a line-make of new motor vehicles and distributes them directly or indirectly through one or more distributors to one or more new motor vehicle dealers in this state or who manufactures or installs on previously assembled truck chassis special bodies or equipment that, when installed, forms an integral part of the new motor vehicle and that constitutes a major manufacturing alteration, but does not include a person who installs a camper on a pickup truck. The term includes a central or principal sales corporation or other entity through which, by contractual agreement or otherwise, a manufacturer distributes its products.
(12) "Motor vehicle" includes a personal watercraft as defined in 23-2-502, a snowmobile as defined in 23-2-601, and an off-highway vehicle as defined in 23-2-801.
(13) "New motor vehicle" means a motor vehicle that has not been the subject of a retail sale regardless of the mileage of the vehicle.
(14) "New motor vehicle dealer" means a person who buys, sells, exchanges, or offers or attempts to negotiate a sale or exchange or any interest in or who is engaged in the business of selling new motor vehicles under a franchise with the manufacturer of the new motor vehicles or used motor vehicles taken in trade on new motor vehicles.
(15) (a) "Retail sale" means the sale of a new motor vehicle.
(b) "Retail sale" does not mean a sale:
(i) of a new motor vehicle to a purchaser who is acquiring the vehicle for the purposes of a resale; or
(ii) that is the result of a transfer between two licensed new motor vehicle dealers.
(16) "Transferee" means a person or entity that:
(a) is in possession or control of a new motor vehicle dealer;
(b) holds an ownership or signed contract interest in a new motor vehicle dealer;
(c) is acting in a fiduciary capacity for a new motor vehicle dealer; or
(d) is an heir, devisee, personal representative, beneficiary, successor, or assign of a new motor vehicle dealer.
History: En. 51-601 by Sec. 1, Ch. 380, L. 1977; R.C.M. 1947, 51-601(1) thru (9), (11), (12); amd. Sec. 2, Ch. 274, L. 1981; amd. Sec. 1, Ch. 431, L. 1981; amd. Sec. 1, Ch. 503, L. 1985; amd. Sec. 8, Ch. 221, L. 1997; amd. Sec. 1, Ch. 313, L. 1999; amd. Sec. 4, Ch. 384, L. 1999; amd. Sec. 1, Ch. 308, L. 2009; amd. Sec. 15, Ch. 389, L. 2021.