Section 466. Unreasonable restrictions  


Latest version.
  • 1.  It  shall  be  unlawful  for a
      franchisor directly or indirectly to impose unreasonable restrictions on
      the franchised motor vehicle dealer relative to transfer, sale, right to
      renew  or  termination  of  a  franchise,   discipline,   noncompetition
      covenants, site-control (whether by sublease, collateral pledge of lease
      or  otherwise),  right of first refusal to purchase, option to purchase,
      compliance with subjective standards and assertion of legal or equitable
      rights with respect to its franchise or dealership.
        2. It shall be deemed an unreasonable restriction  upon  the  sale  or
      transfer  of a dealership for a franchisor (i) directly or indirectly to
      prevent or attempt to prevent a franchised  motor  vehicle  dealer  from
      obtaining  the  fair  value  of  the  franchise or the fair value of the
      dealership business as a going concern; or (ii) to refuse to approve the
      sale or transfer of a dealership due to the  fact  that  the  franchised
      motor  vehicle  dealer  owns,  has an investment in, participates in the
      management of or holds a franchise for the sale or  service  of  another
      line  make  of  new motor vehicles, or that the franchised motor vehicle
      dealer  has  established  another  franchise  in  the  same   dealership
      facilities  for  the  sale  or service of another line make of new motor
      vehicles prior to the effective date of this  paragraph,  or  the  other
      franchise has been approved in writing by the franchisor.