reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1505 - Prohibited Conduct in Connection With Offer, Sale, or Purchase of Franchise.

445.1505 Prohibited conduct in connection with offer, sale, or purchase of franchise.
Sec. 5.
A person shall not, in connection with the filing, offer, sale, or purchase of any franchise, directly or indirectly:
(a) Employ any device, scheme, or artifice to defraud.
(b) Make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading.
(c) Engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1505a - Franchise Opportunities Handbook.

445.1505a Franchise opportunities handbook.
Sec. 5a.
The department, in cooperation with the Michigan consumers council, shall prepare and make available to an interested agency or person a franchise opportunities handbook containing information to be used by a potential franchisee in evaluating a franchise offering.
History:
Add. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1507 - Repealed. 1984, Act 92, Eff. June 20, 1984.

445.1507 Repealed. 1984, Act 92, Eff. June 20, 1984.
Compiler's Notes:
The repealed section pertained to conditions to exemption under MCL 445.1506(1).
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1509-445.1511 - Repealed. 1984, Act 92, Eff. June 20, 1984.

445.1509-445.1511 Repealed. 1984, Act 92, Eff. June 20, 1984.
Compiler's Notes:
The repealed sections pertained to disclosure statement, exemption from registration requirements, and proposed offering prospectus.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1512 - Escrow of Initial Investment and Other Funds; Time; Surety Bond; Financial Institution as Escrow Agent; Release of Escrowed Funds; Affidavit.

445.1512 Escrow of initial investment and other funds; time; surety bond; financial institution as escrow agent; release of escrowed funds; affidavit.
Sec. 12.
(1) A franchisor whose most recent financial statements are unaudited and which show a net worth of less than $100,000.00 shall, at the request of a franchisee, arrange for the escrow of initial investment and other funds paid by the franchisee or subfranchisor until the obligations to provide real estate, improvements, equipment, inventory, training, or other items included in the franchise offering are fulfilled. At the option of the franchisor, a surety bond may be provided in place of escrow.
(2) The escrow agent shall be a financial institution authorized to do business in this state. The escrow agent may release to the franchisor those amounts of the escrowed funds applicable to a specific franchisee or subfranchisor upon presentation of an affidavit executed by the franchisee and an affidavit executed by the franchisor stating that the franchisor has fulfilled its obligation to provide real estate, improvements, equipment, inventory, training, or other items. This subsection does not prohibit a partial release of escrowed funds upon receipt of affidavits of partial fulfillment of the franchisor's obligation.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1513 - Conditions Prohibiting Offering for Sale or Selling Franchise.

445.1513 Conditions prohibiting offering for sale or selling franchise.
Sec. 13.
A franchise shall not be offered for sale or sold in this state if any of the following apply:
(a) The franchisor's method of business includes or would include activities which are illegal where performed.
(b) A person identified in the disclosure statement has been convicted of an offense described in section 8(2)(e)(i), is subject to an administrative order, or has had a civil judgment entered against him or her involving the illegal offering of franchises or securities and the department determines that the involvement of the person in the sale or management of the franchise creates an unreasonable risk to prospective franchisees.
(c) The franchise offering is the subject of a permanent or temporary injunction entered under any federal or state act applicable to the offering.
(d) The franchisor has failed to pay the proper fee.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1514-445.1518 - Repealed. 1984, Act 92, Eff. June 20, 1984.

445.1514-445.1518 Repealed. 1984, Act 92, Eff. June 20, 1984.
Compiler's Notes:
The repealed sections pertained to effective date of registration, notice of stop order, conditions to sale of franchise, and renewal of registration.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1519 - Filing Change in Information Contained in Notice.

445.1519 Filing change in information contained in notice.
Sec. 19.
A franchisor shall file with the department promptly in writing any change in the information contained in the notice as originally submitted or amended.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1520 - Accounts of Franchise Sales; Reports; Examination of Records.

445.1520 Accounts of franchise sales; reports; examination of records.
Sec. 20.
A franchisor offering franchises for sale in this state shall keep and maintain accounts of franchise sales in accordance with generally accepted accounting principles and shall make and file with the department such reports as the department may by rule or order prescribe, including an annual report setting forth the franchises sold by it, the proceeds derived therefrom, and the names and addresses of all of the franchisor's franchise agents in this state. All these records are subject at any time to a reasonable periodic, special, or other examinations by a representative of the department, within or without this state, as the department deems necessary or appropriate in the public interest or for the protection of franchisees.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1521 - Certain Facts Not to Constitute Finding or Approval; Representation Inconsistent With Section Prohibited.

445.1521 Certain facts not to constitute finding or approval; representation inconsistent with section prohibited.
Sec. 21.
(1) The fact that documents required under this act are filed does not constitute a finding by the department that a document filed under this act is true, complete, or not misleading. Neither any such fact nor the fact that an exemption is available for a transaction means that the department has passed in any way upon the merits or qualifications of, or recommended or given approval to, any persons, franchise, or transaction.
(2) A person shall not make or cause to be made to a prospective purchaser or offeree a representation inconsistent with this section.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1522 - Service of Process.

445.1522 Service of process.
Sec. 22.
The notice filed by a nonresident franchisor under section 7a shall be considered an irrevocable consent appointing the corporations and securities bureau of the department of commerce to be its attorney to receive service of lawful process in any noncriminal action or proceeding against it or its successor, executor, or administrator, which arises under this act or a rule or order hereunder after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. Service may be made by leaving a copy of the process in the office of the corporations and securities bureau of the department of commerce but it is not effective unless the plaintiff, who may be the department in an action or proceeding instituted by it, forthwith sends notice of the service and a copy of the process by certified mail to the defendant or respondent at its last address on file with the department and the plaintiff's affidavit of compliance is filed in the action, on or before the return day of the process, if any, or within such further time as the court allows.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1523 - Untrue Statement, Omission, or Failure to Give Notice of Change.

445.1523 Untrue statement, omission, or failure to give notice of change.
Sec. 23.
A person shall not make an untrue statement of a material fact in a notice or report filed with the department under this act, or omit to state in a notice or report a material fact which is required to be stated therein, or fail to notify the department of a change as required by this act.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1524 - Filing of Advertisement or Sales Literature; Exemption From Liability.

445.1524 Filing of advertisement or sales literature; exemption from liability.
Sec. 24.
(1) The department may by rule or order require the filing of any advertisement or other sales literature or advertising communication addressed or intended for distribution to prospective franchisees.
(2) Nothing in this act shall impose any liability, civil or criminal, upon any person or publisher regularly engaged in the business of publishing a bona fide newspaper or operating a radio or television station, and acting solely in his official capacity, who publishes an advertisement in good faith and without knowledge that such advertisement or publication constitutes a violation of this act.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1525 - Publication of False or Misleading Advertisement Prohibited.

445.1525 Publication of false or misleading advertisement prohibited.
Sec. 25.
A person shall not publish an advertisement concerning the offer or sale of a franchise in this state if the advertisement contains a statement that is false or misleading or omits to make any statement necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1526 - Repealed. 1984, Act 92, Eff. June 20, 1984.

445.1526 Repealed. 1984, Act 92, Eff. June 20, 1984.
Compiler's Notes:
The repealed section pertained to violation of order.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1528 - Pyramid.

445.1528 Pyramid.
Sec. 28.
The department shall not accept for filing a franchise that involves a pyramid promotional scheme that violates the pyramid promotional scheme act, MCL 445.2581 to 445.2586.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 2018, Act 187, Eff. Sept. 11, 2018
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1529, 445.1530 - Repealed. 1984, Act 92, Eff. June 20, 1984.

445.1529, 445.1530 Repealed. 1984, Act 92, Eff. June 20, 1984.
Compiler's Notes:
The repealed sections pertained to franchise agent's application and cease and desist order.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1531 - Liability for Damages or Rescission; Basis of Damages.

445.1531 Liability for damages or rescission; basis of damages.
Sec. 31.
(1) A person who offers or sells a franchise in violation of section 5 or 8 is liable to the person purchasing the franchise for damages or rescission, with interest at 6% per year from the date of purchase until June 20, 1984 and 12% per year thereafter and reasonable attorney fees and court costs.
(2) A person may not file or maintain suit under this section if the franchisee received a written offer before suit and at a time when the franchisee owned the franchise to refund the consideration paid together with interest from the date of purchase at 1 percentage point above the rate provided by subsection (1), less the amount of income received on the franchise, conditioned only upon tender by the person of all items received by the franchisee for the consideration and not sold, and failed to accept the offer within 30 days of its receipt, or if the franchisee received the offer before suit and at a time when the franchisee did not own the franchise, unless the franchisee rejected the offer in writing within 30 days of its receipt. The rescission offer shall recite the provisions of this section. If the franchise involves substantial building or substantial equipment and a significant period of time has elapsed since the sale of the franchise to the franchisee, the rescission offer may recognize depreciation, amortization, and other factors which bear upon the value of the franchise being returned to the franchisor.
(3) A person who offers or sells a franchise in violation of section 7a is liable to the person purchasing the franchise for damages caused by the noncompliance.
(4) In a proceeding under this act, damages may be based on reasonable approximations, but not on speculation.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984 ;-- Am. 1989, Act 1, Eff. Mar. 29, 1990 ;-- Am. 1989, Act 49, Imd. Eff. June 12, 1989
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1532 - Joint and Several Liability.

445.1532 Joint and several liability.
Sec. 32.
A person who directly or indirectly controls a person liable under this act, a partner in a firm so liable, a principal executive officer or director of a corporation so liable, a person occupying a similar status or performing similar functions, an employee of a person so liable who materially aids in the act or transaction constituting the violation, is also liable jointly and severally with and to the same extent as the person, unless the other person who is so liable had no knowledge of or reasonable grounds to believe in the existence of the facts by reason of which the liability is alleged to exist.
History:
1974, Act 269, Eff. Oct. 15, 1974
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1533 - Statute of Limitations.

445.1533 Statute of limitations.
Sec. 33.
An action shall not be maintained to enforce a civil or criminal liability created under this act unless brought before the expiration of 4 years after the act or transaction constituting the violation.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1534 - Civil Liability; Liability Under Other Statute or Common Law.

445.1534 Civil liability; liability under other statute or common law.
Sec. 34.
Except as explicitly provided in this act, civil liability in favor of any private party shall not arise against a person by implication from or as a result of the violation of a provision of this act or a rule or order hereunder. Nothing in this act shall limit a liability which may exist by virtue of any other statute or under common law if this act were not in effect.
History:
1974, Act 269, Eff. Oct. 15, 1974
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1535 - Action by Department for Injunction, Restitution, or Compliance; Restraining Order; Writ of Mandamus; Appointment of Receiver or Conservator; Bond Not Required; Costs; Notice of Action; Opportunity to Cease and Desist or to Confer With Department; Presumption of Immediate and Irreparable Harm.

445.1535 Action by department for injunction, restitution, or compliance; restraining order; writ of mandamus; appointment of receiver or conservator; bond not required; costs; notice of action; opportunity to cease and desist or to confer with department; presumption of immediate and irreparable harm.
Sec. 35.
(1) Whenever it appears to the department that a person has engaged, is engaged, or is about to engage in an act or practice constituting a violation of a provision of this act or a rule or order hereunder, after notice as required in subsection (2), the department may bring an action in the name of the people in the circuit court to enjoin the acts or practices, to obtain restitution on behalf of the franchisee, or to enforce compliance with this act or a rule or order hereunder. Upon a proper showing a preliminary or permanent injunction, restraining order, or writ of mandamus shall be granted and a receiver or conservator may be appointed for the defendant or the defendant's assets. The court shall not require the department to post a bond. The court may award costs, including reasonable costs of investigation, to the prevailing party.
(2) Unless waived by the court on good cause shown not less than 10 days before the commencement of an action under this section, the department shall notify the person of the intended action and give the person an opportunity to cease and desist from the alleged unlawful method, act, or practice or to confer with the department in person, by counsel, or by other representative as to the proposed action before the proposed filing date. The notice may be given the person by mail, postage prepaid, to the place of business listed in the notice under section 7a.
(3) In an action under this section to enjoin enforcement of a provision that is void and unenforceable under section 27, if the court finds that such a provision is present, there is a presumption of immediate and irreparable harm to the franchisee. Further showing shall not be required for a grant of a preliminary injunction.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1536 - Investigations; Statements Under Oath; Administration of Oaths and Affirmations; Subpoena; Evidence; Order Requiring Appearance; Self-Incrimination; Perjury; Contempt.

445.1536 Investigations; statements under oath; administration of oaths and affirmations; subpoena; evidence; order requiring appearance; self-incrimination; perjury; contempt.
Sec. 36.
(1) The department in its discretion may:
(a) Make such public or private investigations within or without this state as it deems necessary to determine if a person has violated or is about to violate this act or any rule or order hereunder or to aid in the enforcement of this act or in the prescribing of rules and forms hereunder, and publish information concerning the violation of this act or any rule or order.
(b) Require or permit any person to file a statement under oath or otherwise subject to the penalties of perjury as the department requires in writing as to all the facts and circumstances concerning the matter to be investigated. Failure to reply with all required information to such a departmental letter within 15 days after receipt thereof, shall be the basis for issuance of a cease and desist order.
(2) For the purpose of an investigation or proceeding under this act, the department or any officer designated by it may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of books, papers, correspondence, memoranda, agreements, or other documents or records which the department deems relevant or material to the inquiry.
(3) In case of contumacy by, or refusal to obey a subpoena issued to a person, the circuit court, upon application by the department, may issue to the person an order requiring him to appear before the department, or an officer designated by it, to produce documentary evidence, if so ordered, or to give evidence touching the matter under investigation or in question. Failure to obey the order of the court may be punished by the court as a contempt.
(4) A person is not excused from attending and testifying or from producing a document or record before the department, or in obedience to the subpoena of the department or an officer designated by it or in a proceeding instituted by the department on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to penalty or forfeiture; but a person may not be prosecuted or subjected to a penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after validly claiming his privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that the person testifying is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
History:
1974, Act 269, Eff. Oct. 15, 1974
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1537 - Repealed. 1984, Act 92, Eff. June 20, 1984.

445.1537 Repealed. 1984, Act 92, Eff. June 20, 1984.
Compiler's Notes:
The repealed section pertained to referring information as to violation to attorney general.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1538 - Violation; Penalty; Punishing Crime Under Other Statute.

445.1538 Violation; penalty; punishing crime under other statute.
Sec. 38.
A person who violates a provision of this act shall be fined not more than $10,000.00, or imprisoned for not more than 7 years, or both. Nothing in this act limits the power of the state to punish a person for any conduct which constitutes a crime under any other statute.
History:
1974, Act 269, Eff. Oct. 15, 1974
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1539 - Prohibited Conduct Equivalent to Appointment of Corporations and Securities Bureau as Attorney for Service of Process; Procedure for Service of Process.

445.1539 Prohibited conduct equivalent to appointment of corporations and securities bureau as attorney for service of process; procedure for service of process.
Sec. 39.
When a person, including a nonresident of this state, engages in conduct prohibited or made actionable by this act or a rule or order hereunder, whether or not the person has filed a consent to service of process, and personal jurisdiction over the person cannot otherwise be obtained in this state, that conduct shall be considered equivalent to an appointment of the the corporations and securities bureau of the department of commerce to be his or her attorney to receive service of a lawful process in any noncriminal action or proceeding against the person or a successor, executor, or administrator which grows out of that conduct and which is brought under this act or any rule or order hereunder, with the same force and validity as if served on the person personally. Service may be made by leaving a copy of the process in the office of the corporations and securities bureau of the department of commerce, but it is not effective unless the plaintiff, which may be the department in an action or proceeding instituted by it, forthwith sends notice of the service and a copy of the process by certified mail to the defendant or respondent at his or her last known address or takes other steps which are reasonably calculated to give actual notice and the plaintiff's affidavit of compliance with this section is filed in the case on or before the return day of the process, if any or within such further time as the court allows.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1540 - Collection and Disposition of Fees and Fines; Detailed Statement; Fee for Filing Notice Under MCL 445.1507a.

445.1540 Collection and disposition of fees and fines; detailed statement; fee for filing notice under MCL 445.1507a.
Sec. 40.
(1) The department shall charge and collect the fee fixed by this section. Fees and fines collected under this section and section 7a shall be transmitted to the state treasurer at least weekly, accompanied by a detailed statement thereof and shall be credited to the general fund.
(2) The fee for filing a notice under section 7a is $250.00.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1541 - Rules.

445.1541 Rules.
Sec. 41.
The department shall promulgate rules pursuant to Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws, to implement this act.
History:
1974, Act 269, Eff. Oct. 15, 1974
Admin Rule:
R 445.101 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1542 - Documents Subject to MCL 15.231 to 15.246; Publication of Information; Disclosure of Information Withheld From Public Inspection; Evidence Sought Under Subpoena.

445.1542 Documents subject to MCL 15.231 to 15.246; publication of information; disclosure of information withheld from public inspection; evidence sought under subpoena.
Sec. 42.
Filings, reports, and other papers and documents filed with the department under this act shall be subject to the freedom of information act, Act No. 442 of the Public Acts of 1976, being sections 15.231 to 15.246 of the Michigan Compiled Laws. The department may publish information filed with it or obtained by it, if the action is in the public interest. The department or its examiners, investigators, assistants, clerks, or deputies shall not disclose information withheld from public inspection except among themselves or when necessary or appropriate in a proceeding or investigation under this act or to other federal or state regulatory agencies. This act shall neither create nor derogate from any privilege which exists at common law or otherwise when documentary or other evidence is sought under a subpoena directed to the department.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1543-445.1545 - Repealed. 1984, Act 92, Eff. June 20, 1984.

445.1543-445.1545 Repealed. 1984, Act 92, Eff. June 20, 1984.
Compiler's Notes:
The repealed sections pertained to copies of documents and provided an effective date.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1546 - Prior Acts, Offenses, Rights, Liabilities, Penalties, Forfeiture, or Punishments Not Impaired or Affected; Transfer of Records, Personnel, and Funds.

445.1546 Prior acts, offenses, rights, liabilities, penalties, forfeiture, or punishments not impaired or affected; transfer of records, personnel, and funds.
Sec. 46.
(1) This act does not impair or affect any act done, offense committed, or right accruing, accrued, or acquired, or a liability, penalty, forfeiture, or punishment incurred before this act takes effect, but the same may be enjoyed, asserted, and enforced, as fully and to the same extent as if this act had not been passed.
(2) The department of commerce shall transfer all records related to the administration of this act to the department of attorney general along with personnel and funds sufficient, in the opinion of the attorney general, to carry out this act.
History:
Add. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1561 - Short Title; Meanings of Words and Phrases.

445.1561 Short title; Meanings of words and phrases.
Sec. 1.
(1) This act shall be known and may be cited as the "motor vehicle franchise act".
(2) For the purposes of this act, the words and phrases defined in sections 2 to 6 have the meanings ascribed to them in those sections, except where the context clearly indicates a different meaning.
History:
1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 2018, Act 668, Eff. Mar. 28, 2019
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1563 - Definitions; D to F.

445.1563 Definitions; D to F.
Sec. 3.
(1) "Distributor" means any person, including importer, that is located in or outside of this state and is engaged in the business of offering for sale, selling, or distributing new and unaltered motor vehicles to a new motor vehicle dealer under a dealer agreement, that maintains a factory representative that is located in or outside of this state for purposes of conducting that business, or that controls a person that is located in or outside of this state and offers for sale, sells, or distributes new and unaltered motor vehicles to a new motor vehicle dealer. Distributor does not include a person that alters or converts motor vehicles for sale to a new motor vehicle dealer.
(2) "Established place of business" means a permanent, enclosed commercial building located in this state that is easily accessible and open to the public at all reasonable times and at which a new motor vehicle dealer may legally conduct business, including the display and repair of motor vehicles, in compliance with the terms of all applicable buildings codes, zoning, and other land-use regulatory ordinances.
(3) "Executive manager" means any of the following:
(a) An individual who is employed by a new motor vehicle dealer in an executive capacity and who has a written employment agreement with the dealer that includes a right for the executive manager to purchase a controlling interest in the dealership at a future time or on the death or incapacity of the dealer.
(b) An individual who is designated by the new motor vehicle dealer, in an addendum to the dealer agreement, as having authority and responsibility to operate the dealership on a day-to-day basis.
(4) "Factory branch" means an office maintained by a manufacturer or distributor for the purpose of selling or offering to sell vehicles to a distributor, wholesaler, or new motor vehicle dealer or for directing or supervising any factory or distributor representatives. The term includes any sales promotion organization maintained by a manufacturer or distributor that is engaged in promoting the sale of a particular make of new motor vehicles in this state to new motor vehicle dealers.
(5) "Factory representative" means an agent or employee of a manufacturer, distributor, or factory branch retained or employed for the purpose of making or promoting the sale of new motor vehicles or for supervising or contracting with new motor vehicle dealers or proposed motor vehicle dealers.
History:
1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 1998, Act 456, Imd. Eff. Dec. 30, 1998 ;-- Am. 2010, Act 140, Imd. Eff. Aug. 4, 2010 ;-- Am. 2018, Act 668, Eff. Mar. 28, 2019
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1564 - Definitions; G to M.

445.1564 Definitions; G to M.
Sec. 4.
(1) "Good faith" means that term as defined in section 1201 of the uniform commercial code, 1962 PA 174, MCL 440.1201.
(2) "Good moral character" means good moral character as defined in and determined under 1974 PA 381, MCL 338.41 to 338.47.
(3) "Line-make" means a collection of models, a series, or a group of motor vehicles manufactured by or for a particular manufacturer, distributor, or importer that are offered for sale, lease, or distribution under a common brand name or mark. All of the following apply to the term "line-make":
(a) Multiple brand names or marks may constitute a single line-make, but only if they are included in a common dealer agreement and the manufacturer, distributor, or importer offers all of the vehicles that bear the multiple names or marks to its authorized dealers together, and not separately.
(b) Motor vehicles that share a common brand name or mark may constitute separate line-makes if those vehicles are of different vehicle types or are intended for different types of use, and either of the following applies:
(i) The manufacturer has expressly defined or covered the subject line-makes of vehicles as separate and distinct line-makes in the applicable dealer agreements.
(ii) The manufacturer has consistently characterized the subject vehicles as constituting separate and distinct line-makes to its dealer network.
(4) "Local market conditions" means certain relevant and material conditions, criteria, data, and facts, beyond the control or influence of a new motor vehicle dealer, that have a material impact on the new motor vehicle dealer's sales performance in the assigned market area in which the new motor vehicle dealer offers vehicles for sale or lease. The term may include, but is not limited to, any of the following:
(a) Demographics in a new motor vehicle dealer's market area.
(b) Geographical and market characteristics in a new motor vehicle dealer's market area.
(c) Local economic circumstances.
(d) The preferences of motor vehicle purchasers or lessees.
(e) Customer drive distance from a new motor vehicle dealer.
(5) "Manufacturer" means a person that manufactures or assembles new motor vehicles or a distributor, factory branch, or factory representative.
(6) "Motor vehicle" means that term as defined in section 33 of the Michigan vehicle code, 1949 PA 300, MCL 257.33, but does not include a bus, a tractor, or farm equipment.
(7) "Motor vehicle service and repair facility" means a motor vehicle repair facility, as defined in section 2 of the motor vehicle service and repair act, 1974 PA 300, MCL 257.1302. The term does not include a motor vehicle dealer performing maintenance, diagnosis, vehicle body work, repairs, or other service or repair work on motor vehicles under the terms of a dealer agreement.
History:
1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 2000, Act 240, Imd. Eff. June 28, 2000 ;-- Am. 2010, Act 140, Imd. Eff. Aug. 4, 2010 ;-- Am. 2018, Act 668, Eff. Mar. 28, 2019
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1565 - Definitions; N to P.

445.1565 Definitions; N to P.
Sec. 5.
(1) "New motor vehicle" means a motor vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold only to a new motor vehicle dealer and for which the new motor vehicle dealer has not issued an original title.
(2) "New motor vehicle dealer" means a person, including a distributor, that holds a dealer agreement granted by a manufacturer, distributor, or importer for the sale or distribution of its motor vehicles; is engaged in the business of purchasing, selling, exchanging, or dealing in new motor vehicles; and has an established place of business in this state.
(3) "Person" means a natural person, partnership, corporation, limited liability company, association, trust, estate, or other legal entity.
(4) "Proposed new motor vehicle dealer" means a person who has an application pending for a new dealer agreement with a manufacturer or distributor. Proposed motor vehicle dealer does not include a person whose dealer agreement is being renewed or continued.
History:
1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 1998, Act 456, Imd. Eff. Dec. 30, 1998 ;-- Am. 2010, Act 139, Imd. Eff. Aug. 4, 2010
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1568 - Acts Not Constituting Good Cause for Termination, Cancellation, Nonrenewal, or Discontinuance of Dealer Agreement.

445.1568 Acts not constituting good cause for termination, cancellation, nonrenewal, or discontinuance of dealer agreement.
Sec. 8.
Notwithstanding any agreement, the following alone shall not constitute good cause for the termination, cancellation, nonrenewal, or discontinuance of a dealer agreement under section 7(1)(c):
(a) A change in ownership of the new motor vehicle dealer's dealership. This subdivision does not authorize any change in ownership that would have the effect of a sale or an assignment of the dealer agreement or a change in the principal management of the dealership without the manufacturer's or distributor's prior written consent.
(b) The refusal of the new motor vehicle dealer to purchase or accept delivery of any new motor vehicle parts, accessories, or any other commodity or services not ordered by the new motor vehicle dealer.
(c) The fact that the new motor vehicle dealer owns, has an investment in, participates in the management of, or holds a dealer agreement for the sale of another make or line of new motor vehicles, or that the new motor vehicle dealer has established another make or line of new motor vehicles in the same dealership facilities as those of the manufacturer or distributor, provided that the new motor vehicle dealer maintains a reasonable line of credit for each make or line of new motor vehicles, and that the new motor vehicle dealer remains in substantial compliance with the terms and conditions of the dealer agreement and with the reasonable facilities' requirements of the manufacturer or distributor.
(d) The fact that the new motor vehicle dealer sells or transfers ownership of the dealership or sells or transfers capital stock in the dealership to the new motor vehicle dealer's spouse, son, or daughter. However, a sale or transfer described in this subdivision does not have the effect of a sale or an assignment of the dealer agreement or a change in the principal management of the dealership without the manufacturer's or distributor's prior written consent.
(e) For purposes of this section, the failure of the new motor vehicle dealer to achieve any performance standard or criteria that are unreasonable, inequitable, or discriminatory.
History:
1981, Act 118, Imd. Eff. July 19, 1981 ;-- Am. 2018, Act 668, Eff. Mar. 28, 2019
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1569 - Burden of Proof.

445.1569 Burden of proof.
Sec. 9.
For each termination, cancellation, nonrenewal, or discontinuance, the manufacturer or distributor shall have the burden of proof for showing that it has acted in good faith, that the notice requirement has been complied with, and that there was good cause for the termination, cancellation, nonrenewal, or discontinuance.
History:
1981, Act 118, Imd. Eff. July 19, 1981
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1570 - Notice of Termination, Cancellation, Nonrenewal, or Discontinuance of Dealer Agreement.

445.1570 Notice of termination, cancellation, nonrenewal, or discontinuance of dealer agreement.
Sec. 10.
Notwithstanding any agreement, prior to the termination, cancellation, nonrenewal, or discontinuance of any dealer agreement, the manufacturer or distributor shall furnish notice of the termination, cancellation, nonrenewal, or discontinuance to the new motor vehicle dealer as follows:
(a) Except as provided in subdivision (c) or (d), notice shall be made not less than 90 days prior to the effective date of the termination, cancellation, nonrenewal, or discontinuance.
(b) Notice shall be by certified mail to the new motor vehicle dealer and shall contain the following:
(i) A statement of intention to terminate, cancel, not renew, or discontinue the dealer agreement.
(ii) A statement of the reasons for the termination, cancellation, nonrenewal, or discontinuance.
(iii) The date on which the termination, cancellation, nonrenewal, or discontinuance takes effect.
(c) Notwithstanding subdivision (a), notice shall be made not less than 15 days prior to the effective date of the termination, cancellation, nonrenewal, or discontinuance for any of the following reasons:
(i) Insolvency of the new motor vehicle dealer, or the filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law.
(ii) Failure of the new motor vehicle dealer to conduct his or her customary sales and service operations during his or her customary business hours for 7 consecutive business days.
(iii) Conviction of the new motor vehicle dealer or its principal owners of a crime, but only if the crime is punishable by imprisonment in excess of 1 year under the law under which the dealer was convicted, or the crime involved theft, dishonesty, or false statement regardless of the punishment.
(iv) Revocation of any license under which the new motor vehicle dealer is required to have to operate a dealership.
(v) A fraudulent misrepresentation by the new motor vehicle dealer to the manufacturer or distributor, which is material to the dealer agreement.
(d) Notwithstanding subdivision (a), notice shall be made not less than 12 months prior to the effective date of a termination, cancellation, nonrenewal, or discontinuance if a manufacturer or distributor discontinues production of the new motor vehicle dealer's product line or discontinues distribution of the product line in this state.
History:
1981, Act 118, Imd. Eff. July 19, 1981
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1574a - Property Use Agreement Not Required as Condition; Exception; Termination of Agreement Between Manufacturer and New Motor Vehicle Dealer; Effect of Inconsistent Provision; "Property Use Agreement" Defined.

445.1574a Property use agreement not required as condition; exception; termination of agreement between manufacturer and new motor vehicle dealer; effect of inconsistent provision; "property use agreement" defined.
Sec. 14a.
(1) A manufacturer shall not require that a new motor vehicle dealer, a proposed new motor vehicle dealer, or any owner of an interest in a dealership facility enter into or agree to a property use agreement as a condition to any of the following:
(a) Awarding a dealer agreement to a prospective new motor vehicle dealer.
(b) Adding a line make or dealer agreement to an existing new motor vehicle dealer.
(c) Renewing a dealer agreement with an existing new motor vehicle dealer.
(d) Approving a relocation of a new motor vehicle dealer's place of business.
(e) Approving a sale or transfer of the ownership of a dealership or a transfer of a dealer agreement to another person.
(2) Subsection (1) does not apply to a property use agreement if any of the following are offered and accepted for that agreement:
(a) Monetary consideration.
(b) Separate and valuable consideration that can be calculated to a sum certain.
(3) If a manufacturer and a new motor vehicle dealer are parties to a property use agreement, the dealer agreement between the manufacturer and new motor vehicle dealer is terminated by a manufacturer, by a successor manufacturer, or by operation of law, and the reason for the termination is not a reason described in section 10(c), the property use agreement terminates and ceases to be effective at the time the dealer agreement is terminated.
(4) If any provision contained in a property use agreement entered into on or after the effective date of the amendatory act that added this subsection is inconsistent with this section, the provision is voidable at the election of the affected new motor vehicle dealer, proposed new motor vehicle dealer, or owner of an interest in the dealership facility.
(5) As used in this section, "property use agreement" means any of the following:
(a) An agreement that requires that a new motor vehicle dealer establish or maintain exclusive dealership facilities.
(b) An agreement that restricts the ability of a new motor vehicle dealer, or the ability of the dealer's lessor if the dealer is leasing the dealership facility, to transfer, sell, lease, or change the use of the place of business of the dealership, whether by sublease, lease, collateral pledge of lease, right of first refusal to purchase or lease, option to purchase, option to lease, or other similar agreement, regardless of who the parties to that agreement are.
(c) Any similar agreement between a manufacturer and a new motor vehicle dealer and commonly known as a site control agreement or exclusive use agreement.
History:
Add. 2010, Act 138, Imd. Eff. Aug. 4, 2010
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 118 of 1981 - Motor Vehicle Franchise Act (445.1561 - 445.1583) › Section 445.1578 - Liability for Damage to New Motor Vehicles; Rejection of New Motor Vehicle by Dealer; Credit.

445.1578 Liability for damage to new motor vehicles; rejection of new motor vehicle by dealer; credit.
Sec. 18.
(1) Notwithstanding the terms, provisions, or conditions of any agreement, a new motor vehicle dealer is solely liable for damages to new motor vehicles after acceptance from the carrier and before delivery to the ultimate purchaser. Acceptance by the new motor vehicle dealer shall occur when the new motor vehicle dealer signs a delivery receipt for any motor vehicle.
(2) Notwithstanding the terms, provisions, or conditions of any agreement, the manufacturer or distributor is liable for all damages to motor vehicles before delivery to a carrier or transporter.
(3) The new motor vehicle dealer is liable for damages to new motor vehicles after delivery to the carrier only if the dealer selects the method of transportation, mode of transportation, and the carrier. In all other instances, the manufacturer or distributor is liable for new motor vehicle damage.
(4) If the new motor vehicle dealer rejects a new motor vehicle pursuant to this section, the manufacturer or distributor shall credit the dealer's account within 10 business days after receipt of the notice of rejection.
History:
1981, Act 118, Imd. Eff. July 19, 1981