Legislation
SECTION 467
Dealership facilities assistance upon termination, cancellation or nonrenewal
Vehicle & Traffic (VAT) CHAPTER 71, TITLE 4, ARTICLE 17-A
§ 467. Dealership facilities assistance upon termination, cancellation
or nonrenewal. Upon a permitted termination, cancellation or nonrenewal
by the franchisor, unless such termination, cancellation or nonrenewal
is for a reason or reasons set forth in subparagraph three of paragraph
(d) of subdivision two of section four hundred sixty-three of this
article, the franchisor shall assume the obligations for any lease of
the dealership facilities or arrange for a new lease of the dealership
facilities or pay the dealer the lease payments for one year, whatever
is less, or negotiate a lease termination for the dealership facilities
at the franchisor's expense. If the facilities are owned by the
franchised motor vehicle dealer, the franchisor shall pay such dealer a
sum equivalent to the reasonable rental value of the dealership facility
for one year, provided the franchised motor vehicle dealer shall
mitigate damages in the case of an owned facility.
or nonrenewal. Upon a permitted termination, cancellation or nonrenewal
by the franchisor, unless such termination, cancellation or nonrenewal
is for a reason or reasons set forth in subparagraph three of paragraph
(d) of subdivision two of section four hundred sixty-three of this
article, the franchisor shall assume the obligations for any lease of
the dealership facilities or arrange for a new lease of the dealership
facilities or pay the dealer the lease payments for one year, whatever
is less, or negotiate a lease termination for the dealership facilities
at the franchisor's expense. If the facilities are owned by the
franchised motor vehicle dealer, the franchisor shall pay such dealer a
sum equivalent to the reasonable rental value of the dealership facility
for one year, provided the franchised motor vehicle dealer shall
mitigate damages in the case of an owned facility.