60-1434. Franchise; additional; service facility; evidence of good cause.

In determining whether good cause has been established for entering into an additional franchise for the same line-make, the board shall take into consideration the existing circumstances, including, but not limited to:

(1) Amount of business transacted by other franchisees of the same line-make in that community;

(2) Investment necessarily made and obligations incurred by other franchisees of the same line-make, in that community, in the performance of their part of their franchises;

(3) Permanency of the investment;

(4) Effect on the retail motor vehicle business as a whole in that community;

(5) Whether it is injurious to the public welfare for an additional franchise to be established; and

(6) Whether the franchisees of the same line-make in that community are providing adequate consumer care for the motor vehicle, combination motor vehicle and trailer, motorcycle, or trailer products of the line-make which shall include the adequacy of motor vehicle, combination motor vehicle and trailer, motorcycle, or trailer dealer service facilities, equipment, supply of parts, and qualified service personnel.

No franchisor, franchisee, or other person shall, directly or indirectly, establish or authorize a separate consumer care or service facility to perform repairs and service, pursuant to the manufacturer's original warranty, on motor vehicles within any community previously assigned to and being served by an existing franchisee without first establishing good cause in the same manner as required for an additional franchise.

Source

Annotations

In determining good cause for the establishment of a new automobile dealership, the Nebraska Supreme Court specifically considers each criterion as set out in this section. In re Application of General Motors Corp., 232 Neb. 11, 439 N.W.2d 453 (1989).