- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 25. Motor Vehicle Transactions
- Section 180. New Dealerships.
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AS 45.25.180. New Dealerships.
- (a) Before a manufacturer or distributor enters into a franchise establishing or relocating a new motor vehicle dealer
within a relevant market area where the same line make is represented, the manufacturer or distributor shall give 90
days' written notice to each new motor vehicle dealer of the same line make in the relevant market area of the
intention to establish an additional new motor vehicle dealer or to relocate an existing new motor vehicle dealer
within that relevant market area.
- (b) Within 30 days after receiving the notice required under (a) of this section or within 30 days after the end of any
appeal procedure provided by the manufacturer or distributor, a new motor vehicle dealer may bring a declaratory
judgment action in the superior court of this state to determine whether good cause exists for the establishment or
relocation of a proposed new motor vehicle dealer. If an action is filed, the manufacturer or distributor may not
establish or relocate the proposed new motor vehicle dealer until the court has rendered a decision on the matter.
- (c) This section does not prohibit
- (1) the relocation of an existing new motor vehicle dealer to a new location not within four miles of an existing new
motor vehicle dealer;
- (2) the appointment of a successor new motor vehicle dealer at the same location as its predecessor or within a two-mile
radius from any boundary of the predecessor's former location within two years from the date when the predecessor
ceased operations or was terminated, whichever occurred later; or
- (3) the entering into of a renewal of, replacement of, or succeeding franchise agreement with an existing new motor
vehicle dealer whose operations will continue at the existing new motor vehicle dealer's current location.
- (d) When determining whether good cause exists for establishing or relocating an additional new motor vehicle dealer for
the same line make, the superior court shall consider the existing circumstances, including
- (1) whether the establishment of an additional franchise or relocation of the existing new motor vehicle dealer appears to
be warranted by economic and marketing conditions, including anticipated future changes;
- (2) the retail sales and service business transacted by the protesting new motor vehicle dealer and other new motor
vehicle dealers of the same line make with a place of business in the relevant market area to be served by the
additional franchise or proposed new location of an existing new motor vehicle dealer during the three-year period
immediately preceding the notice;
- (3) the investment necessarily made and obligations incurred by the protesting new motor vehicle dealer to perform the
protesting new motor vehicle dealer's obligations under existing franchise agreements;
- (4) the permanency of the investment of the protesting new motor vehicle dealer; and
- (5) whether it is beneficial or injurious to the public welfare for an additional franchise to be established or for the
existing new motor vehicle dealer to be relocated.
- (e) In this section,
- (1) "relevant market area" means the greater of the area
- (A) within a radius of 14 miles around an existing new motor vehicle dealer; or
- (B) of responsibility defined in a governing franchise agreement;
- (2) "relocate" and "relocation" do not include the relocation of a new motor vehicle dealer within two miles of the new
motor vehicle dealer's established place of business.
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