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Utah Code § 13-14-308

Private right of action

Known as the New Automobile Franchise Act

The act spans §§ 13–13 (25 sections).

Amended by Chapter 41, 2010 General Session

(1) A franchisee has a private right of action for actual damages and reasonable attorney fees against a franchisor for a violation of this chapter that results in damage to the franchisee.

(2)

(a) As used in this Subsection (2):

(i) "New franchisor" has the same meaning as defined in Section 13-14-302.5.

(ii) "Reinstated franchise" has the same meaning as defined in Section 13-14-302.5.

(iii) "Reinstated franchisee" has the same meaning as defined in Section 13-14-302.5.

(b) A reinstated franchisee has a private right of action for actual damages and reasonable attorney fees against a new franchisor if:

(i) the new franchisor:

(A) establishes a new franchisee of the same line-make as a line-make of the reinstated franchisee within the relevant market area of the reinstated franchisee; or

(B) adds a line-make to another franchisor's existing franchisee within the relevant market area of the reinstated franchisee that is the same line-make as a line-make of the reinstated franchisee; and

(ii) the franchisor's action under Subsection (2)(b)(i) causes a substantial diminution in value of the reinstated franchisee's reinstated franchise.

(c) A new franchisor may not be held liable under Subsection (2)(b) based on a franchisee's purchase of another existing franchise, both of which are within the relevant market area of a reinstated franchisee, for the purpose of combining the purchased franchise with the franchise of the purchasing franchisee.

Official source: Utah State Legislature. Reproduced from public-domain Utah statutes; confirm against the official source for the current text. Not legal advice.