reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-41.6 - Finality of order.

32-6B-41.6. Finality of order.
An order issued pursuant to §32-6B-41.4 or 32-6B-41.7 becomes final upon expiration of the time allowed for appeals from the secretary's order, if no appeal is taken, or, if an appeal is taken, upon final decision of the court if the court affirms the secretary's order or dismisses the appeal.
Source:
SL 2005, ch 162, §6; SL 2020, ch 139, § 5.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-41.7 - Cease and desist order--Failure to comply--Penalty.

32-6B-41.7  .  Cease and desist order--Failure to comply--Penalty.
If a public auction fails to comply with a cease and desist order issued pursuant to §  32-6B-41.1  , the secretary may issue an order imposing a monetary penalty on the public auction of five hundred dollars for each subsequent violation of the cease and desist order. All monetary penalties collected pursuant to this section shall be deposited in the state motor vehicle fund.
Source:  SL 2020, ch 139, § 3.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-42 - Notification of surety of license denial, suspension or revocation.

32-6B-42. Notification of surety of license denial, suspension or revocation.
The department shall upon denial, suspension, or revocation of any license, notify the surety company of the licensee, in writing, that the license has been denied, suspended, or revoked and shall state the reason for such denial, suspension, or revocation.
Source:
SL 1986, ch 250, §43.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-47 - When franchisor may establish additional vehicle dealership for same line-make--Hearing.

32-6B-47. When franchisor may establish additional vehicle dealership for same line-make--Hearing.
No franchisor may enter into a franchise for the purpose of establishing an additional vehicle dealership in any community in which the same line-make is currently represented, unless the franchisor has first established in a hearing held under the provisions of chapter 1-26 that an additional dealership under such franchise is in the public interest.
Source:
SL 1986, ch 250, §48.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-48 - Factors in determining cause for establishing additional franchise for same line-make.

32-6B-48. Factors in determining cause for establishing additional franchise for same line-make.
In determining whether cause is established for entering into an additional franchise for the same line-make, the department shall consider the existing circumstances, including, but not limited to:
(1)The amount of business transacted by existing franchisees of the same line-make in that community;
(2)Whether the franchisees of the same line-make in that community are making a good faith effort to sell the franchisor's product;
(3)Investment necessarily made and obligations incurred by existing franchisees of the same line-make in the community in the performance of their part of their franchises;
(4)The effect on the retail vehicle business as a whole in that community;
(5)The general quality and reputation of existing franchisees in the community and their ability to provide consumer care and service; and
(6)Whether it is injurious to the public interest for an additional franchise to be established.
Source:
SL 1986, ch 250, §49.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-49 - Factors which are not cause for termination or noncontinuance of franchise or for establishing additional franchise for same line-make.

32-6B-49. Factors which are not cause for termination or noncontinuance of franchise or for establishing additional franchise for same line-make.
The following circumstances are not cause for the termination or noncontinuance of a franchise, nor for entering into a franchise for the establishment of an additional dealership in a community for the same line-make:
(1)The change of executive management or ownership by the franchisee, unless the franchisor can show that the change would be detrimental to the representation or reputation of the franchisor's product;
(2)Refusal by the franchisee to purchase or accept delivery of any motor vehicles or vehicles, parts, accessories, or any other commodity or service not ordered by said franchisee;
(3)The sole fact that franchisor desires further penetration of the market;
(4)The fact that the franchisee owns, has an investment in, participates in the management of, or holds a franchise for the sale of another line-make of vehicle, or that the franchisee has established another line-make of vehicle in the same dealership facilities as those of the franchisor, if the franchisee maintains a reasonable line of credit for each line-make of vehicle; or
(5)Refusal by the dealer to participate in any advertising campaign or contest or purchase any promotional materials, display devices, or display decoration or materials which are at the expense of the dealer.
Source:
SL 1986, ch 250, §50; SL 1990, ch 244, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-49.1 - Terms or conditions not allowed in franchise agreement.

32-6B-49.1. Terms or conditions not allowed in franchise agreement.
No franchise agreement may include any term or condition in a franchise that:
(1)Requires the franchisee to waive trial by jury involving the franchisor;
(2)Specifies the jurisdictions, venues or tribunals in which disputes arising with respect to the franchise, lease or agreement shall or may not be submitted for resolution or otherwise prevents a franchisee from bringing an action in a particular forum otherwise available under the law;
(3)Requires that disputes between the franchisor and franchisee be submitted to arbitration or to any other binding alternate dispute resolution procedure. However, any franchise, lease or agreement may authorize the submission of a dispute to arbitration or to binding alternate dispute resolution if the franchisor and franchisee voluntarily agree to submit the dispute to arbitration or binding alternate dispute resolution at the time the dispute arises;
(4)Requires a franchisee to pay the attorney fees of a franchisor;
(5)Prohibits the holder of an existing franchise from being dualed with another franchisor's line that does not substantially affect the current franchisor or community;
(6)Prohibits the holder of an existing franchise from moving to another facility within the franchisee's community that is equal to or superior to the franchisee's former facility;
(7)Prohibits the holder of an existing franchise from making improvements to the franchisee's current facility within the franchisee's community; or
(8)Permits a franchisor or the franchisor's assignee to exercise a right of first refusal to acquire a franchisee's franchise or a franchisee's assets in connection with the sale by a franchisee of that franchisee's franchise or assets.
An existing franchisee shall give the franchisor prior written notice of the proposed dual arrangement, relocation, or improvement described in subdivisions (5), (6), and (7). The notice shall contain sufficient information for the franchisor to evaluate the proposal. Within sixty days of receiving said notice, the franchisor shall send a letter to the franchisee either approving or disapproving the proposal. If the franchisor does not notify the franchisee of its approval or denial of the dual arrangement, relocation, or improvement within the sixty-day period, the franchisee's proposal shall be deemed to have been approved. No franchisor may unreasonably withhold its approval. Denial of a proposed dual arrangement or facility improvement shall be supported by credible evidence that it will substantially affect in an adverse way the current franchisor or community. Denial of a proposed relocation shall be supported by credible evidence that the new location is not at least equal to the franchisee's former facility.
This section does not apply to agreements pertaining to the lease or sale of real property.
Source:
SL 1990, ch 244, §2; SL 1998, ch 179, §1; SL 2002, ch 153, §1; SL 2010, ch 156, §7, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-50 - Notice of intention to enter into additional franchise for same line-make.

32-6B-50. Notice of intention to enter into additional franchise for same line-make.
If a franchisor seeks to enter into an additional franchise of the same line-make, the franchisor shall file a notice with the department of the franchisor's intention to enter into a franchise for additional representation of the same line-make.
Source:
SL 1986, ch 250, §51; SL 2010, ch 156, §8, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-51 - Copies of notice to be sent to franchisees and other interested persons.

32-6B-51. Copies of notice to be sent to franchisees and other interested persons.
Upon receiving a notice of intention seeking to establish an additional franchise of the same line-make in a particular community, a copy of the notice shall be sent within five days of receipt to all franchisees in the community who are engaged in the business of offering to sell or selling the same line-make. The department may also give a copy of the franchisor's notice to any other party which it considers interested persons.
Source:
SL 1986, ch 250, §52; SL 2010, ch 156, §9, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-52 - Objection to approval of notice--Time for filing written objection--Approval absent timely objection.

32-6B-52. Objection to approval of notice--Time for filing written objection--Approval absent timely objection.
Any person who receives or is entitled to receive a copy of any notice provided for in §32-6B-50, may object to the approval of the notice by filing a written objection to the department within fifteen days from the date the notice was received by such person. If no objection is filed within fifteen days from the date the notice was received by such person, the notice shall be approved.
Source:
SL 1986, ch 250, §53.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-53 - Hearing on objection--Time and place--Notice--Continuance.

32-6B-53. Hearing on objection--Time and place--Notice--Continuance.
If a timely objection is filed, the department shall enter an order fixing the time, which shall be within thirty days of the date of such order, and place of a hearing on the objection and shall send by first class mail a copy of the order to the franchisor, franchisee, and any other persons entitled to receive a copy of the notice provided for in §32-6B-50 or 32-6B-73. The department may, upon request, continue the date of hearing for a period of thirty days.
Source:
SL 1986, ch 250, §54; SL 2000, ch 150, §7.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-54 - Burden of proof at hearing.

32-6B-54. Burden of proof at hearing.
Upon a hearing conducted under the provisions of chapter 1-26, the franchisor has the burden of proof to establish that cause exists to enter into a franchise establishing an additional dealership.
Source:
SL 1986, ch 250, §55; SL 2010, ch 156, §10, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-55 - Hearing upon change of circumstances.

32-6B-55. Hearing upon change of circumstances.
If a franchisor is not permitted to enter into a franchise for the line-make in the community, no such franchise may thereafter be entered into for the sale of such vehicles in the community unless the franchisor thereafter establishes, in a subsequent hearing held under the provisions of chapter 1-26, that there has been a change of circumstances so that the community at that time can be reasonably expected to support such a dealership.
Source:
SL 1986, ch 250, §56; SL 2010, ch 156, §11, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-56 - Dealer's license not to be issued to franchisee absent compliance by franchisor.

32-6B-56. Dealer's license not to be issued to franchisee absent compliance by franchisor.
If a franchisor enters into or attempts to enter into a franchise for an additional new vehicle dealership in a community where the same line-make is already represented, without first complying with the provisions of this chapter, no dealer's license may be issued to that franchisee or proposed franchisee to engage in the business of selling new vehicles, manufactured or distributed by that franchisor.
Source:
SL 1986, ch 250, §57; SL 2010, ch 156, §12, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-56.1 - Trailer franchisees not subject to certain provisions.

32-6B-56.1. Trailer franchisees not subject to certain provisions.
The provisions of §§32-6B-45 to 32-6B-56, inclusive, do not apply to any trailer franchisee dealing in trailers with a weight of three thousand pounds or less. This section may not be construed to exclude such a franchisee from the licensing and other requirements contained in this chapter.
Source:
SL 2010, ch 156, §4, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-57 - Sale by franchisor to franchisee at lower price than that charged to other franchisee prohibited--Exceptions--Violation as misdemeanor--Damages.

32-6B-57. Sale by franchisor to franchisee at lower price than that charged to other franchisee prohibited--Exceptions--Violation as misdemeanor--Damages.
It shall be unlawful for a franchisor to offer to sell or to sell any new vehicle to any franchisee at a lower actual price therefor than the actual price charged to any other franchisee for the same model vehicle similarly equipped or to utilize any device including, but not limited to, sales promotion plans or programs which result in such lesser actual price; provided, however, the provisions of this section shall not apply to sales to a franchisee for resale to any unit of government, federal, state, or local. Provided, further, the provisions of this section shall not apply to sales to a franchisee of any vehicle ultimately sold, donated, or used by said franchisee in a driver's education program. Provided, further, that the provisions of this section shall not apply so long as the franchisor offers to sell or sells new vehicles to all franchisees at the same price. Each and every person who violates this section shall be guilty of a Class 1 misdemeanor, and each and every person violating this section shall be liable thereby for all damages caused by such violation.
Source:
SL 1986, ch 250, §58.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-58 - Franchisor, component manufacturer or manufacturer--Warranty agreement fulfillment--Process--Right to audit.

32-6B-58. Franchisor, component manufacturer or manufacturer--Warranty agreement fulfillment--Process--Right to audit.
Every franchisor, component manufacturer, or manufacturer shall properly fulfill any warranty agreement and compensate, as set forth in §32-6B-61, each of its vehicle dealers for labor and parts. The franchisor, component manufacturer, or manufacturer shall pay all claims made by a vehicle dealer for the labor and parts within thirty days following their approval. The franchisor, component manufacturer, or manufacturer shall either approve or disapprove the claim within thirty days after its receipt. If a claim is disapproved, the vehicle dealer who submitted the claim shall be notified in writing of the claim's disapproval within the thirty-day period. Any claim rejected for technical reasons may be put into proper form by the vehicle dealer. Any claim resubmitted by the vehicle dealer within thirty days after the receipt of the claim shall be considered to be approved and payment shall be made within thirty days. The franchisor, component manufacturer, or manufacturer has the right to audit any vehicle dealer claim for a period of one year after the claim is paid to the dealer and to charge back to the new vehicle dealer the amount of any unsubstantiated claim. If there is evidence of fraud by the vehicle dealer, the audit period is two years from the actual or constructive notice of facts constituting the alleged fraud.
Source: SL 1986, ch 250, §59; SL 1990, ch 245, §1; SL 1995, ch 177; SL 2005, ch 161, §1; SL 2010, ch 156, §13, eff. Mar. 9, 2010; SL 2023, ch 100, §4.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-58.1 - Franchisor, component manufacturer, or manufacturer--Separate warranty for an engine, transmission, or rear axle--Process--Right to audit.

32-6B-58.1. Franchisor, component manufacturer, or manufacturer--Separate warranty for an engine, transmission, or rear axle--Process--Right to audit.
A franchisor, component manufacturer, or manufacturer that provides a separate warranty for an engine, transmission, or rear axle installed in a commercial medium- and heavy-duty on-highway vehicle, as defined in 49 U.S.C. §32901(a)(7) as of January 1, 2021, shall compensate any authorized repair facility that performs warranty work to repair or replace the engine, transmission or rear axle upon the same terms and conditions as provided in §32-6B-61 for compensation of warranty work performed by a vehicle dealer. The franchisor, component manufacturer, or manufacturer shall pay all claims made by the facility for the labor and parts within thirty days following approval. The franchisor, component manufacturer, or manufacturer shall either approve or disapprove the claim within thirty days after receiving the claim. If a claim is disapproved, the facility that submitted the claim shall be notified in writing of the claim's disapproval within the thirty-day period. Any claim rejected for technical reasons may be put into proper form by the facility. Any claim resubmitted by the facility within thirty days after the receipt of the claim shall be considered to be approved and payment shall be made within thirty days. The franchisor, component manufacturer, or manufacturer has the right to audit any facility’s claim for a period of one year after the claim is paid to the facility and to charge back to the facility the amount of any unsubstantiated claim. If there is evidence of fraud by the facility, the audit period is two years from the actual or constructive notice of facts constituting the alleged fraud.
Source: SL 2021, ch 134, §1; SL 2023, ch 100, §5.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-58.2 - Manufacturer or component manufacturer--Charge back--Prohibited in certain circumstances.

32-6B-58.2. Manufacturer or component manufacturer--Charge back--Prohibited in certain circumstances.
Except as provided in §32-6B-58.3, a manufacturer or component manufacturer may not charge back to a vehicle dealer any warranty claim that has been paid and approved for any vehicle or any part, component, complete assembly, or subassembly for a vehicle if:
(1)The repair work was covered under the manufacturer’s or component manufacturer's warranty;
(2)The repair work corrected the defective condition that needed to be repaired;
(3)The vehicle dealer provided documentation of the parts repaired and the process used to make the repairs; and
(4)The vehicle dealer performed the repair in accordance with reasonable written requirements of the manufacturer or component manufacturer, if the vehicle dealer was notified of the requirements before the claim arose and if the requirements were in effect when the claim arose.
Source: SL 2023, ch 100, §2.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-58.3 - Manufacturer or component manufacturer--Charge back--Permitted in certain circumstances.

32-6B-58.3. Manufacturer or component manufacturer--Charge back--Permitted in certain circumstances.
A manufacturer or component manufacturer may charge back a warranty claim if:
(1)The claim was false or fraudulent; or
(2)The repairs were not necessary to correct the defective condition under accepted standards of workmanship.
Source: SL 2023, ch 100, §3.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-59 - Right of department to apply for injunction against violation of chapter.

32-6B-59. Right of department to apply for injunction against violation of chapter.
In addition to the remedies provided in this chapter, the department may make application to any circuit court of this state to grant a temporary or permanent injunction, or both, restraining any person from acting as a vehicle dealer under the terms of this chapter without being properly licensed hereunder, from violating or continuing to violate any of the provisions of this chapter or chapters 32-3, 32-5, or for failing or refusing to comply with the requirements of this chapter or chapters 32-3, 32-5, or any rules adopted thereunder. Such injunction shall be issued without bond. A single act in violation of the provisions of this chapter or of chapter 32-3 or 32-5, is sufficient to authorize the issuance of an injunction.
Source:
SL 1986, ch 250, §60.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-60 - Adoption of rules.

32-6B-60. Adoption of rules.
The secretary of revenue may adopt rules pursuant to chapter 1-26 as may be necessary to ensure and obtain uniformity in the administration of this chapter. All local officials charged with the administration of the provisions of this chapter are governed in their official acts by the rules promulgated by the secretary.
Source:
SL 1986, ch 250, §61; SL 2004, ch 17, §89; SL 2011, ch 1 (Ex. Ord. 11-1), §161, eff. Apr. 12, 2011.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-61 - Schedule of compensation for warranty work.

32-6B-61. Schedule of compensation for warranty work.
The schedule of compensation for warranty work shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor. Time allowances for diagnosis and performance of warranty work and service shall be adequate for the work to be performed. The hourly labor rate paid to the dealer for warranty services may not be less than the rate charged by the dealer for like service to nonwarranty customers for nonwarranty service. Reimbursement for parts used in the performance of warranty repair may not be less than the current retail rate customarily charged by the vehicle dealer for such parts. Each manufacturer or component manufacturer, in establishing a schedule of compensation for warranty work, shall rely on the vehicle dealer's written schedule of hourly labor rates and parts and may not obligate any vehicle dealer to engage in unduly burdensome documentation thereof, including, without limitation, obligating vehicle dealers to engage in transaction by transaction calculations.
Source: SL 1990, ch 245, §2; SL 2010, ch 156, §14, eff. Mar. 9, 2010; SL 2023, ch 100, §6.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-62 - Trailer dealers exempt from certain liability insurance requirements.

32-6B-62. Trailer dealers exempt from certain liability insurance requirements.
The provisions of subdivision 32-6B-6(16) and subdivision 32-6B-41(13) do not apply to a trailer dealer's license.
Source:
SL 1991, ch 246; SL 2019, ch 130, §16.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-63 - Regulation of advertising.

32-6B-63. Regulation of advertising.
The Department of Revenue may promulgate rules, pursuant to chapter 1-26, to regulate the advertising of vehicles offered for sale by vehicle dealers. The department may promulgate rules concerning the following:
(1)Price advertising;
(2)Availability of vehicles; and
(3)General advertising practices.
Source:
SL 1991, ch 247, §1; SL 2004, ch 17, §90; SL 2011, ch 1 (Ex. Ord. 11-1), §161, eff. Apr. 12, 2011.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-64 - Advertising defined.

32-6B-64. Advertising defined.
For the purposes of §32-6B-63 the term, advertising, means any oral, written, or graphic statement which offers for sale a particular vehicle or vehicle parts and services or which indicates the availability of a vehicle or vehicle goods or services. The term includes any statement or representation made in a newspaper, periodical, pamphlet, circular, other publication, or on a radio or television; contained in any notice, handbill, sign, billboard, poster, bill, catalog, or letter; or printed on or contained in any tag or label which is attached to a vehicle.
Source:
SL 1991, ch 247, §2.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-66 - In-transit permits for certain trailer manufacturer's trailers.

32-6B-66. In-transit permits for certain trailer manufacturer's trailers.
Any manufacturer of trailers located in the state and who has registered with the department as a manufacturer of trailers may use an in-transit permit to operate any of the manufacturer's trailers upon the streets and highways of this state for in-transit purposes and for travel to and from a service facility. A manufacturer may not issue an in-transit permit for a trailer for any other purpose. A violation of this section is a Class 1 misdemeanor.
Source:
SL 1994, ch 247, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-67 - Promulgation of rules for in-transit permits for trailer manufacturer's trailers.

32-6B-67. Promulgation of rules for in-transit permits for trailer manufacturer's trailers.
The department shall prescribe, by rules promulgated pursuant to chapter 1-26, the size, color, material, and design of the trailer manufacturer in-transit permits as provided by §32-6B-66. The department shall also provide, by rule, the process for registering trailer manufacturers pursuant to §32-6B-66 and a registration fee of not more than fifty dollars.
Source:
SL 1994, ch 247, §2.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-69 - Franchise agreement--Change of terms--Dealer rights.

32-6B-69. Franchise agreement--Change of terms--Dealer rights.
No franchisor may modify a franchise during the terms of the franchise or upon its renewal if the modification would substantially and adversely affect the vehicle dealer's rights, obligations, investment, or return on investment without giving at least sixty days notice of the proposed modification to the vehicle dealer unless the change is required by law. Within the sixty-day period, the vehicle dealer may file an objection requesting a determination of whether good cause exists for permitting the proposed modification with the Department of Revenue and serve notice on the franchisor. The department shall promptly schedule a hearing to be held under the provisions of chapter 1-26 and decide the matter within ninety days from the date the protest is filed. Multiple protests pertaining to the same proposed modification shall be consolidated for hearing. No proposed modification may take effect with respect to the protesting vehicle dealer's franchise pending the determination of the matter. The written notice shall contain on the first page thereof a conspicuous statement which reads substantially as follows: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE SOUTH DAKOTA DEPARTMENT OF REVENUE IN PIERRE, SOUTH DAKOTA, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSED MODIFICATION OR REPLACEMENT OF YOUR FRANCHISE WITH A SUCCEEDING FRANCHISE UNDER THE TERMS OF SOUTH DAKOTA LAW IF YOU OPPOSE THIS ACTION."
This section does not apply to franchise agreements involving travel trailers or motor homes.
Source:
SL 1998, ch 180, §1; SL 2004, ch 17, §92; SL 2005, ch 161, §2; SL 2011, ch 1 (Ex. Ord. 11-1), §161, eff. Apr. 12, 2011.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-69.1 - Audit by franchisor--Limitation--Exception.

32-6B-69.1. Audit by franchisor--Limitation--Exception.
A franchisor may reasonably and periodically audit a franchisee to determine the validity of paid claims or chargebacks for customer or dealer incentives. An audit of incentive payments may apply only for a period of one year after the claims are paid to the dealer. The limitations of this section do not apply if the franchisor can prove fraud.
Source:
SL 2002, ch 153, §5; SL 2010, ch 156, §15, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-70 - License required for certain activities--Violation as misdemeanor--Additional violations as felony.

32-6B-70. License required for certain activities--Violation as misdemeanor--Additional violations as felony.
No sell-it-yourself lot operator may engage in the following business activities concerning any vehicle on a sell-it-yourself lot premises, unless licensed in accordance with the provisions of this chapter:
(1)Sell, offer to sell, or negotiate the sale of any vehicle;
(2)Buy, offer to buy, or negotiate the purchase of any vehicle;
(3)Make any comments about the appearance, condition, or reputation of any vehicle;
(4)Communicate the name, address, or phone number of the owner of any vehicle to a potential customer. However, the vehicle and ownership information can be provided to a potential customer by means of a sign or information sheet placed in or on the vehicle by its owner;
(5)Advertise any of the following:
(a)The price, mileage, or the condition of a vehicle; or
(b)The name or the telephone number of a vehicle's owner;
(6)Authorize the test drive of any vehicle;
(7)Take possession of the keys of a vehicle for any purpose; or
(8)Sell, offer to sell, or facilitate the sale of any financing package or warranty package for any vehicle on the sell-it-yourself lot.
A sell-it-yourself lot operator who engages in a business activity prohibited by this section without being licensed in accordance with chapter 32-6B is guilty of a Class 1 misdemeanor. A second or subsequent conviction for a violation by a sell-it-yourself lot operator who engages in a business activity prohibited by this section without being licensed in accordance with chapter 32-6B is guilty of a Class 6 felony.
Source:
SL 1998, ch 181, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-71 - Vehicle dealership--Death of owner--Succession of interest.

32-6B-71. Vehicle dealership--Death of owner--Succession of interest.
The owner of a vehicle dealership may appoint by trust, will, or any other valid written instrument a successor to the owner's dealership interest upon the owner's death or incapacity. Unless the franchisor has good cause to refuse to honor the succession, the successor may succeed to the ownership of the dealership under the existing franchise if:
(1)Within ninety days of the owner's death or incapacity, the successor gives written notice of the successor's intent to succeed to ownership of the dealership; and
(2)The successor agrees to be bound by all the terms and conditions of the franchise agreement with the prior owner.
Upon request, the successor shall promptly provide the franchisor evidence of the successorship appointment, as well as personal and financial information reasonably necessary to determine whether the succession should be honored by the franchisor.
Source:
SL 1998, ch 182, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-72 - Succession--Refusal to honor.

32-6B-72. Succession--Refusal to honor.
If a franchisor believes that good cause exists to refuse to honor the intended succession under §32-6B-71, the franchisor shall serve the named successor written notice of refusal to honor the intended succession within sixty days of its receipt of the notice of intended succession, or within sixty days of receiving the information requested pursuant to §32-6B-71, whichever is later. The notice shall contain specific grounds for the refusal to honor the succession.
If the notice of refusal to honor the intended succession is not timely served upon the intended successor, the successor may continue the franchise subject only to termination as otherwise permitted in this chapter.
In determining whether good cause exists for the refusal to honor the intended succession, the franchisor has the burden of proving that the intended successor is not a person of good moral character or does not meet the franchisor's existing and reasonable standards. Good cause for refusal to honor succession does not include the owner's dealership being dualed with another franchisor's line.
Source:
SL 1998, ch 182, §2.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-73 - Notification of decision to transfer, assign, or sell franchise agreement or dealership--Notification as application for approval.

32-6B-73. Notification of decision to transfer, assign, or sell franchise agreement or dealership--Notification as application for approval.
In order to transfer, assign, or sell a franchise agreement or controlling interest in the dealership to another person, a dealer shall notify the manufacturer or franchisor whose vehicles the dealer is franchised to sell of the dealer's decision to transfer, assign, or sell the dealership. The notification shall be by certified mail, return receipt requested, and is the application by the dealer for approval by the manufacturer or franchisor of the transfer.
Source:
SL 2000, ch 150, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-74 - Contents of notice.

32-6B-74. Contents of notice.
The notice shall be in writing and shall include:
(1)The prospective transferee's name, address, financial qualifications, and business experience;
(2)A copy of pertinent agreements regarding the proposed transfer, assignment, or sale;
(3)Completed application forms and related information generally utilized by the manufacturer or franchisor in reviewing prospective dealers; and
(4)The prospective transferee's written agreement to comply with the terms of the franchise agreement to the extent that the franchise agreement is not in conflict with this chapter.
Source:
SL 2000, ch 150, §2.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-75 - Manufacturer or franchisor to determine prospective transferee's qualification--Notice of decision--Statement of reasons for rejection.

32-6B-75. Manufacturer or franchisor to determine prospective transferee's qualification--Notice of decision--Statement of reasons for rejection.
Not later than the sixty days after receiving notice and application as provided by §§32-6B-73 to 32-6B-78, inclusive, the manufacturer or franchisor shall determine whether or not the dealer's prospective transferee is qualified and shall send a letter by certified mail, return receipt requested, informing the dealer of the approval of the prospective transferee or the unacceptability of the prospective transferee. If the prospective transferee is not acceptable, the manufacturer or franchisor shall include a statement setting forth the material reasons for the rejection. An application filed by a dealer as provided in §§32-6B-73 to 32-6B-78, inclusive, is approved unless rejected by the manufacturer or franchisor in the manner provided by §§32-6B-73 to 32-6B-78, inclusive.
Source:
SL 2000, ch 150, §3.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-76 - Approval may not be unreasonably withheld.

32-6B-76. Approval may not be unreasonably withheld.
Approval by a manufacturer or franchisor of an application filed under §§32-6B-73 to 32-6B-78, inclusive, may not be unreasonably withheld. It is unreasonable for a manufacturer or franchisor to reject a prospective transferee who otherwise meets the manufacturer's or franchisor's written, reasonable, and uniformly applied standards or qualifications, if any, relating to the prospective transferee's business experience and financial qualifications.
Source:
SL 2000, ch 150, §4; SL 2002, ch 153, §2.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-78 - Transferee's qualification as sole issue in objection.

32-6B-78. Transferee's qualification as sole issue in objection.
The issue in an objection filed under §§32-6B-73 to 32-6B-78, inclusive, either with the department or in a separate civil proceeding, is whether or not the prospective transferee is qualified. The department, or a court in a separate civil proceeding, shall enter an order holding that the prospective transferee either is qualified or is not qualified. If the department's or a court's order is that the prospective transferee is qualified, the dealer's franchise agreement is amended to reflect the change in franchisee and the manufacturer or franchisor shall accept the transfer for all purposes. If the department's or a court's order is that the prospective transferee is not qualified, the department or a court may include specific reasons why the prospective transferee is not qualified and may include specific conditions under which the prospective transferee would be qualified. If the department's or a court's order that a prospective transferee is not qualified includes specific conditions under which the prospective transferee would be qualified, the department or a court may retain jurisdiction of the dispute for a time certain to allow the dealer and prospective transferee to meet the conditions set forth.
Source:
SL 2000, ch 150, §6; SL 2010, ch 156, §18, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-79 - Manufacturer defined.

32-6B-79. Manufacturer defined.
In §§32-6B-79 to 32-6B-83, inclusive, the term, manufacturer, includes a representative or a person or entity who is directly or indirectly controlled by, or is under common control with, the manufacturer. For purposes of this section, a person or entity is controlled by a manufacturer if the manufacturer has the authority directly or indirectly, by law or by agreement of the parties, to direct or influence the management and policies of the person or entity. However, the term, manufacturer, does not include any person or entity who manufactures or assembles less than two hundred fifty motorcycles a year or who manufactures or assembles trailers.
Source:
SL 2000, ch 151, §1; SL 2002, ch 153, §3; SL 2006, ch 164, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-80 - Manufacturer or franchisor may not own or operate dealership--Exceptions.

32-6B-80. Manufacturer or franchisor may not own or operate dealership--Exceptions.
Except as otherwise provided by §§32-6B-79 to 32-6B-83, inclusive, no manufacturer or franchisor may directly or indirectly:
(1)Own an interest in a vehicle dealer or dealership;
(2)Operate or control a vehicle dealer or dealership; or
(3)Act in the capacity of a vehicle dealer.
This section does not apply to a final stage manufacturer dealer.
Source:
SL 2000, ch 151, §2; SL 2012, ch 165, §4.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-81 - Manufacturer or franchisor may own or operate for limited period--Conditions.

32-6B-81. Manufacturer or franchisor may own or operate for limited period--Conditions.
A manufacturer or franchisor may own an interest in a franchised vehicle dealer, or otherwise control a dealership, for a period not to exceed twelve months from the date the manufacturer or franchisor acquires the dealership if:
(1)The person from whom the manufacturer or franchisor acquired the dealership was a franchised dealer; and
(2)The dealership is for sale by the manufacturer or franchisor at a reasonable price and on reasonable terms and conditions.
Source:
SL 2000, ch 151, §3.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-82 - Exceptions for the purpose of broadening diversity of dealer body.

32-6B-82. Exceptions for the purpose of broadening diversity of dealer body.
For the purpose of broadening the diversity of its dealer body and enhancing opportunities for qualified persons who are part of a group who have historically been underrepresented in its dealer body, or other qualified persons who lack the resources to purchase a dealership outright, but for no other purpose, a manufacturer or franchisor may temporarily own an interest in a dealership if the manufacturer's or franchisor's participation in the dealership is in a bona fide relationship with a franchised vehicle dealer who:
(1)Has made a significant investment in the dealership, subject to loss;
(2)Has an ownership interest in the dealership; and
(3)Operates the dealership under a plan to acquire full ownership of the dealership within a reasonable time and under reasonable terms and conditions.
Source:
SL 2000, ch 151, §4.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-83 - Extension of time period in 32-6B-81--Application--Limit.

32-6B-83. Extension of time period in 32-6B-81--Application--Limit.
On a showing by a manufacturer or franchisor of good cause, the department may extend the time limit set forth in §32-6B-81. No extension under this section may exceed twelve months. An application for an extension after the first extension is granted is subject to protest by a vehicle dealer of the same line-make whose dealership is located in the same county as, or within fifteen miles of, the dealership owned or controlled by the manufacturer or franchisor. The department may not grant more than two extensions.
Source:
SL 2000, ch 151, §5.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-85 - Civil action for injunction and damages.

32-6B-85. Civil action for injunction and damages.
Notwithstanding the terms of any vehicle dealer agreement or waiver to the contrary, any vehicle dealer whose business or property is injured, or is about to be injured, by any violation of §§32-6B-45 to 32-6B-83, inclusive, may bring a civil action to enjoin any such violation, without having to prove irreparable injury, and to recover actual damages sustained, together with costs, disbursements, and reasonable attorney fees.
Source:
SL 2010, ch 156, §20, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-86 - Applicability of SL 2010, ch 156 amendments.

32-6B-86. Applicability of SL 2010, ch 156 amendments.
The provisions of this chapter as amended on March 9, 2010 apply to each vehicle dealer in any written or oral vehicle dealership agreement existing between a dealer and a manufacturer or distributor on March 9, 2010 which has no expiration date and to any subsequent written or oral vehicle dealership agreement entered into, amended, or renewed between a vehicle dealer and a manufacturer or distributor.
Source:
SL 2010, ch 156, §19, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-87 - Dealers permitted to lease space in common area of shopping mall for displaying new vehicles--Restrictions--Exception.

32-6B-87. Dealers permitted to lease space in common area of shopping mall for displaying new vehicles--Restrictions--Exception.
A vehicle dealer licensed in this state may lease space in the common area of a shopping mall for the display of new vehicles without a supplemental license if the shopping mall is located within the corporate limits of the municipality where the dealer maintains its principal place of business. A dealer may not display more than four vehicles in a single shopping mall, contract for an exclusive right to lease all common areas of the shopping mall available for vehicle display, or negotiate the sale of any vehicle on the premises of the shopping mall. The lease shall be in writing. The dealer shall maintain a copy of the lease for a period of one year from the date of expiration of the lease and allow a representative of the department to examine the lease at the dealer's principle place of business during regular business hours. For purposes of this section, a shopping mall is any building or series of interconnected buildings containing a minimum of two hundred thousand square feet of leasable space for occupancy by a variety of retail stores and restaurants which is located in a municipality with a population that exceeds thirteen thousand. The provisions of this section do not apply to a licensed dealer with a principal place of business located on the premises of the shopping mall.
Source:
SL 2018, ch 187, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-88 - Off-road vehicle dealers exempt from certain special event permit requirements, fees, and taxes.

32-6B-88. Off-road vehicle dealers exempt from certain special event permit requirements, fees, and taxes.
Notwithstanding any other provisions of this chapter, an off-road vehicle dealer is not required to purchase a permit or license to attend any two-day temporary special event location in the county or adjoining the county the dealer is located in. Any fees or taxes imposed by this title do not apply to any off-road vehicle dealer attending any two-day temporary special event location pursuant to this section.
Source:
SL 2018, ch 188, §1.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06B - Regulation Of Vehicle Dealers › Section 32-6B-89 - Licensed dealer permitted to take vehicle to adjoining county for demonstration.

32-6B-89. Licensed dealer permitted to take vehicle to adjoining county for demonstration.
A licensed dealer may take a vehicle to an adjoining county for demonstration purposes. For the purpose of this section, a demonstration is for the purpose of showing the qualities and characteristics common to vehicles of the same or similar models or types in parades.
Source:
SL 2019, ch 130, §13.
2023 South Dakota Codified Laws › Title 32 - Motor Vehicles › Chapter 06C - Regulation Of Snowmobile Dealers › Section 32-6C-1 - "Snowmobile dealer" defined.

32-6C-1."Snowmobile dealer" defined.
For the purposes of this chapter, a "snowmobile dealer" means any person who, for commission or with intent to make a profit or gain, sells, exchanges, rents with option to purchase, offers or attempts to negotiate a sale or exchange of new or used snowmobiles, or who is engaged wholly or in part in the business of selling new or used snowmobiles.
Source:
SL 1987, ch 223, §1.