reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 04A - Agricultural Contracts › Section 37-4A-2 - Resolution by mediation.

37-4A-2. Resolution by mediation.
Any contract for an agricultural commodity, of more than one year duration, between a contractor and a producer shall contain language attempting to provide for resolution of contract disputes by mediation. Either party to a contract may initiate mediation services, as specified in the contract, to facilitate resolution of the dispute. Mediation shall be completed within forty-five days unless both parties agree to extend the time period, or the parties shall be released. No party may proceed to litigation until an attempt has been made to mediate the dispute.
Source:
SL 1997, ch 277, §2.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 04A - Agricultural Contracts › Section 37-4A-4 - Good faith--Damages for violation.

37-4A-4. Good faith--Damages for violation.
There is an implied promise of good faith as defined in subdivision 57A-1-201(19), by all parties to any agricultural contract. In any action to recover damages, if the court or a jury finds that there has been a violation of this provision, in addition to other damages authorized by law, attorney fees may be awarded.
Source:
SL 1997, ch 277, §4.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-1 - Coercion of dealer to force unwanted purchases as misdemeanor.

37-5-1. Coercion of dealer to force unwanted purchases as misdemeanor.
It is a Class 1 misdemeanor for any manufacturer, factory, branch, distributor, or distributor-branch, or any field representative, officer, agent, or representative of any of them to coerce or attempt to coerce any dealer to purchase or accept delivery of any merchandise, repair parts for the merchandise, or any other commodity that has not been ordered by the dealer; by threatening to cancel or terminate any franchise, agency, arrangement, or agreement existing between such manufacturer, factory, branch, distributor, distributor-branch, or any field representative, officer, agent, or representative of any of them and the dealer or by any other unfair means or by duress of any kind.
Source:
SL 1951, ch 262, §1; SDC Supp 1960, §54.1103; SL 1970, ch 219, §1; SL 1973, ch 200, §2; SDCL Supp, §37-5-1.1; SL 1977, ch 190, §235; SL 1995, ch 228, §1; SL 2004, ch 254, §4.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-2 - Coercion of dealer to control sales or force expenditures as misdemeanor.

37-5-2. Coercion of dealer to control sales or force expenditures as misdemeanor.
It is a Class 1 misdemeanor for any manufacturer, factory, branch, distributor, or distributor-branch, or any field representative, officer, agent, or representative of any of them to coerce or attempt to coerce any dealer to enter into any agreement with the manufacturer, factory, branch, distributor, or distributor-branch, or any field representative, officer, agent, or representative of any of them, or to assign, sell, or dispose of any contract or property in any way, or to expend any money or do any other act unfair to such dealer; by threatening to cancel or terminate any franchise, agency, arrangement, or agreement existing between such manufacturer, factory, branch, distributor, distributor-branch, or any field representative, officer, agent, or representative of any of them and the dealer or by any other unfair means or by duress of any kind.
Source:
SL 1951, ch 262, §1; SDC Supp 1960, §54.1103; SL 1970, ch 219, §2; SL 1973, ch 200, §2; SDCL Supp, §37-5-1.1; SL 1977, ch 190, §236; SL 1995, ch 228, §2; SL 2004, ch 254, §5.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-3 - Unfair cancellation of dealer franchise as misdemeanor.

37-5-3. Unfair cancellation of dealer franchise as misdemeanor.
It is a Class 1 misdemeanor for any manufacturer, factory, branch, distributor, or distributor-branch, or any field representative, officer, agent, or representative of any of them, unfairly, without due regard to the equities of the dealer and without just provocation, to cancel the franchise of any dealer.
Source:
SL 1951, ch 262, §1; SDC Supp 1960, §54.1103; SL 1970, ch 219, §3; SL 1973, ch 200, §2; SDCL Supp, §37-5-1.1; SL 1977, ch 190, §237; SL 1995, ch 228, §3; SL 2004, ch 254, §6.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-4 - Civil liability for damages from violation.

37-5-4. Civil liability for damages from violation.
Each and every person and corporation who or which violates any provision of §§37-5-1 to 37-5-3, inclusive, shall be liable to any dealer damaged thereby for all damages caused to such dealer by such violation.
Source:
SL 1951, ch 262, §2; SDC Supp 1960, §54.9911; SL 1977, ch 190, §238.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-5 - Cancellation of contract--Recovery of costs and charges by dealer--Transfer of title and possession.

37-5-5. Cancellation of contract--Recovery of costs and charges by dealer--Transfer of title and possession.
If any dealer enters into a written contract; if the dealer maintains a stock of merchandise or repair parts for the merchandise with any wholesaler, manufacturer, or distributor; and if either the wholesaler, manufacturer, or distributor, or their successors, or the dealer, desires to cancel or discontinue the contract; the wholesaler, manufacturer, or distributor, or successor, shall pay to the dealer, unless the dealer should desire to keep the merchandise, a sum equal to one hundred percent of the net cost of all current unused complete merchandise, including transportation and reasonable assembly charges which have been paid by the dealer and ninety-five percent of the current net prices on repair parts, including superseded parts, listed in a current price list or catalog which parts had previously been purchased from the wholesaler, manufacturer, or distributor, or predecessor, and held by the dealer on the date of the cancellation or discontinuance of the contract. The wholesaler, manufacturer, or distributor, or successor, shall also pay the dealer a sum equal to five percent of the current net price of all parts returned for the handling, packing, and loading of the parts back to the wholesaler, manufacturer, or distributor and pay any freight charges that were paid by the dealer. Upon the payment of the sum required by this section, the title to any merchandise or repair parts for the merchandise shall pass to the manufacturer, wholesaler, or distributor making the payment, and the manufacturer, wholesaler, or distributor, is entitled to the possession of the merchandise or the repair parts for the merchandise.
Source:
SL 1969, ch 206, §1; SL 1970, ch 219, §4; SL 1975, ch 241; SL 1989, ch 336, §1; SL 1995, ch 228, §4; SL 2000, ch 201, §1; SL 2001, ch 212, §1; SL 2004, ch 254, §7.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-5.5 - Reimbursement for computer and signage costs incurred under requirements of wholesaler, manufacturer or distributor.

37-5-5.5. Reimbursement for computer and signage costs incurred under requirements of wholesaler, manufacturer or distributor.
A wholesaler, manufacturer, or distributor shall also repurchase from the dealer and the dealer shall sell any specialized computer hardware or software, specialized tool, or signage which the wholesaler, manufacturer, or distributor required the dealer to purchase or lease as part of the dealer agreement. Upon delivery to the wholesaler, manufacturer, or distributor of any such specialized computer hardware or software, tool, or signage, the wholesaler, manufacturer, or distributor shall pay to the dealer:
(1)For such computer hardware and software specifically required by the wholesaler, manufacturer, or distributor purchased within the last five years, the net cost less twenty percent per year depreciation. For purposes of this subdivision, the term, software, means software that is sourced from the wholesaler, manufacturer, or distributor, or its approved vendor, to meet the minimum requirements of the wholesaler, manufacturer, or distributor;
(2)For current logoed signage constituting the principal outdoor signage required by the wholesaler, manufacturer, or distributor, identifying the dealer as its representative, the original net cost to the dealer less fifteen percent per year, but in no case less than twenty percent of the original net cost to the dealer;
(3)For any specialized diagnostic or repair tool required by the wholesaler, manufacturer, or distributor which is unique to the product line and in complete, usable condition, seventy-five percent of the original net cost to the dealer if within ten years of purchase by the dealer, provided that any new, unused specialized repair tool applicable to the products of the wholesaler, manufacturer, or distributor shall be purchased at one hundred percent of the original net cost to the dealer.
Source:
SL 2001, ch 212, §2; SL 2004, ch 254, §8.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-6 - Contracts subject to dealer's right to recovery of costs and charges on cancellation.

37-5-6. Contracts subject to dealer's right to recovery of costs and charges on cancellation.
The provisions of §37-5-5 relating to a retailer's right to cancel or discontinue a contract and receive payment for machines, attachments, and parts returned shall apply to all contracts in effect on July 1, 1969, which have no expiration date and are a continuing contract, and all other contracts entered into or renewed after July 1, 1969. Any contract in force and effect on July 1, 1969, which by its own terms will terminate on a date subsequent thereto shall be governed by the law as it existed prior to July 1, 1969.
Source:
SL 1969, ch 206, §1.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-7 - Determination of prices to be paid to dealer on cancellation of contract.

37-5-7. Determination of prices to be paid to dealer on cancellation of contract.
The prices of merchandise required to be paid to any dealer as provided in §37-5-5, shall be determined by taking one hundred percent of the net cost of the merchandise, and ninety-five percent of the current net price of repair parts for the merchandise as shown upon the manufacturer's, wholesaler's, or distributor's price lists or catalogues in effect at the time the contract is canceled or discontinued. The prices for any specialized computer hardware and software, specialized tool, or signage shall be as specified in §37-5-5.5. For purposes of §§37-5-5 to 37-5-9, inclusive, if any dealer has actual proof of purchase of any repair parts or other merchandise from any manufacturer, wholesaler, or distributor, or its predecessor, the repair parts even though not currently listed in any price list or catalog and all other merchandise, purchased within ten years of the dealership cancellation or termination shall be repurchased at the original purchase price.
Source:
SL 1969, ch 206, §2; SL 1970, ch 219, §5; SL 1973, ch 200, §2; SDCL Supp, §37-5-1.1; SL 1989, ch 336, §2; SL 1995, ch 228, §5; SL 2000, ch 201, §2; SL 2001, ch 212, §3; SL 2004, ch 254, §9.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-7.1 - Time for payment of costs and charges to dealer--Final statement of account.

37-5-7.1. Time for payment of costs and charges to dealer--Final statement of account.
The payments to be made to the dealer pursuant to §§37-5-5 to 37-5-9, inclusive, shall be made no later than sixty days from the date the merchandise is received by the wholesaler, manufacturer, or distributor and shall be accompanied by a final detailed statement of account thereon.
Source:
SDCL, §37-5-5 as added by SL 1975, ch 241; SL 2001, ch 212, §4; SL 2004, ch 254, §10.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-9 - Death of dealer--Repurchase of merchandise, parts, and attachments--Exercise of rights by heirs.

37-5-9. Death of dealer--Repurchase of merchandise, parts, and attachments--Exercise of rights by heirs.
In the event of the death of the dealer or majority stockholder in a corporation operating a dealership in the business of selling merchandise or repair parts for merchandise, the wholesaler, distributor, or manufacturer who supplied the merchandise, or its successor, shall repurchase from the heir or heirs of the dealer or majority stockholder the merchandise at a sum equal to one hundred percent of the net cost of all current unused complete merchandise, including transportation and reasonable assembly charges that have been paid by the dealer, and ninety-five percent of the current net prices on repair parts for the merchandise, including superseded parts, listed in current price lists or catalogues, plus a sum equal to five percent of the current net price of all parts returned for handling, packing, and loading of the parts, and any specialized computer hardware or software, specialized tool, or signage as specified in §37-5-5.5, unless the heir or heirs agree to continue to operate the dealership. If the heir or heirs do not agree to continue to operate the dealership, it is deemed a cancellation or discontinuance of contract by the dealer under the provisions of §37-5-5, and as such the heir or heirs may exercise any rights and privileges under §§37-5-5 to 37-5-9, inclusive.
Source:
SL 1969, ch 206, §4; SL 1970, ch 219, §7; SL 1973, ch 200, §2; SDCL Supp, §37-5-1.1; SL 1989, ch 336, §4; SL 1995, ch 228, §7; SL 2000, ch 201, §4; SL 2001, ch 212, §§6, 7; SL 2004, ch 254, §12.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-10 - Current unused complete farm implements, machinery or attachments defined.

37-5-10. Current unused complete farm implements, machinery or attachments defined.
For the purposes of §§37-5-5 and 37-5-9, the term, current unused complete farm implements, machinery, and attachments, means any unused complete farm implement, machinery, or attachment which is less than two years old as determined by the date of invoice.
Source:
SL 1991, ch 318.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-11 - Restriction of jurisdiction or venue to out-of-state forum or requiring application of foreign law prohibited.

37-5-11. Restriction of jurisdiction or venue to out-of-state forum or requiring application of foreign law prohibited.
Any provision in any agreement evidenced by a franchise agreement, sales agreement, security agreement, or other form of agreement or arrangement of like effect between any wholesaler, manufacturer, distributor of farm machinery or implements, or distributor of industrial or construction equipment and a retail dealer restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state to disputes arising under the agreement is void as a matter of public policy.
Source:
SL 1991, ch 319, §1; SL 2012, ch 197, §2.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-12 - Waiver of law void.

37-5-12. Waiver of law void.
Any condition, stipulation, or provision in any agreement evidenced by a franchise agreement, sales agreement, security agreement, or other form of agreement or arrangement of like effect, purporting to waive compliance with any provision of this chapter, or other provision of state law applying to such agreements is void as a matter of public policy.
Source:
SL 1991, ch 319, §2.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-12.1 - Dealer defined.

37-5-12.1. Dealer defined.
For the purposes of §§37-5-1 to 37-5-12, inclusive, the term, dealer, means any person, or the person's successor who, for commission or with intent to make a profit or gain, sells, exchanges, rents, leases with the option to purchase, or offers or attempts to negotiate a sale or exchange any merchandise as defined by this chapter from manufacturer authorized facilities in this state, or who is engaged wholly or in part in the business of selling any such merchandise from manufacturer authorized facilities in this state. The term does not include any person with total annual gross sales in this state and elsewhere of one hundred million dollars or more of industrial and construction equipment, attachments, replacement parts, and service related to the equipment, from any one manufacturer or supplier of such equipment.
Source:
SL 2004, ch 254, §1; SL 2012, ch 197, §3.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-12.2 - Merchandise defined.

37-5-12.2. Merchandise defined.
For the purposes of §§37-5-1 to 37-5-12, inclusive, the term, merchandise, means:
(1)Automobiles, trucks, motorcycles, motor homes or travel trailers of the type and kind required to be titled and registered pursuant to chapters 32-3 and 32-5, and accessories;
(2)Farm tractors, farm implements, farm machinery, and attachments;
(3)Industrial and construction equipment and attachments;
(4)Boats and personal watercraft;
(5)Snowmobiles and all-terrain vehicles, including multipurpose utility vehicles, side by sides, and similar type vehicles whether powered by electricity or by combustion engine;
(6)Office furniture, equipment, supplies, and attachments;
(7)Outdoor power equipment and attachments;
(8)A temperature control unit; and
(9)An auxiliary idle reduction and temperature management system or auxiliary power unit.
For the purposes of this section, the term, temperature control unit, means a piece of equipment that is mounted on a titled vehicle (trailer, rail car, or container) for the temperature management of temperature sensitive cargo.
For the purposes of this section, the term, auxiliary idle reduction and temperature management system, means a piece of equipment that is mounted on a titled vehicle, usually a semi-tractor, to enable the driver to turn off the engine yet have access to air conditioning, heat, and electric power inside the vehicle's cab.
Source:
SL 2004, ch 254, §2; SL 2008, ch 202, §2; SL 2010, ch 156, §21, eff. Mar. 9, 2010.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-12.3 - Contract defined.

37-5-12.3. Contract defined.
For the purposes of §§37-5-1 to 37-5-12, inclusive, the term, contract, means any written franchised agreement, sales agreement, dealer agreement, or security agreement, or other form of agreement or arrangement of like effect and its successor.
Source:
SL 2004, ch 254, §3.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-12.4 - Merchandise manufacturer or supplier compensation of dealer for diagnostic and warranty work.

37-5-12.4. Merchandise manufacturer or supplier compensation of dealer for diagnostic and warranty work.
Any manufacturer or supplier of merchandise as defined in subdivision 37-5-12.2(5), (8), or (9) that authorizes a dealer of such merchandise to perform the warranty work is obligated to provide that dealer reasonable compensation for diagnostic work, as well as repair service, parts, and labor to the dealer. Time allowances for diagnostic 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 dealer for the part or parts.
Source:
SL 2010, ch 156, §22, eff. Mar. 9, 2010; SL 2020, ch 172, § 1.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-13 - Definition of terms used in §§ 37-5-13 to 37-5-15.

37-5-13. Definition of terms used in §§37-5-13 to 37-5-15.
Terms used in §§37-5-13 to 37-5-15, inclusive, mean:
(1)"Dealer," any person who receives machinery from a manufacturer under a dealership contract and who offers and sells the machinery to the general public from manufacturer authorized facilities in this state. The term, dealer, does not include a single-line dealer or any person with total annual gross sales in this state and elsewhere of one hundred million dollars or more of industrial and construction equipment, attachments, replacement parts, and service related to the equipment, from any one manufacturer or supplier of such equipment;
(2)"Dealership contract," a written agreement or contract between a manufacturer and dealer which fixes the legal rights and liabilities of the parties to such agreement or contract;
(3)"Machinery," any farm vehicle as defined by §32-3-2.4 or any off-road vehicle as defined by subdivision 32-3-1(15) or merchandise as defined in subdivision 37-5-12.2(3);
(4)"Manufacturer," any person engaged in the manufacturing or distribution of machinery including any person who acts for the manufacturer;
(5)"Single-line dealer," any person that has purchased seventy-five percent or more of the dealer's total new product inventory from a single manufacturer of industrial and construction equipment under agreements with that manufacturer and has a total annual average sales of industrial and construction equipment volume for the three previous years with that single manufacturer in excess of fifty million dollars for the territory for which that dealer is responsible.
Source:
SL 1999, ch 200, §1; SL 2012, ch 197, §4.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-14 - Certain circumstances not cause for termination of dealership contract or entering into new dealership contract.

37-5-14. Certain circumstances not cause for termination of dealership contract or entering into new dealership contract.
The following circumstances are not cause for the termination or discontinuance of a dealership contract, nor for entering into a dealership contract for the establishment of an additional dealership in a community for the same line-make:
(1)The change of executive management or ownership of the dealer, unless the manufacturer can show that the change would be detrimental to the representation or reputation of the manufacturer's product;
(2)Refusal by the dealer to purchase or accept delivery of any machinery, parts, accessories, or any other commodity or service not ordered by the dealer unless such machinery, parts, accessories, or other commodity or service is necessary for the operation of machinery commonly sold in the dealer's area of responsibility;
(3)The sole fact that the manufacturer desires further penetration of the market;
(4)The fact that the dealer owns, has an investment in, participates in the management of, or holds a dealership contract for the sale of another line-make of machinery, or that the dealer has established another line-make of machinery in the same dealership facilities as those of the manufacturer, if the dealer maintains a reasonable line of credit for each line-make of machinery; or
(5)Refusal by the dealer to participate in any national 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 1999, ch 200, §2.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-15 - Certain terms or conditions in dealership contract or lease prohibited--Not applicable to lease or sale of real property.

37-5-15. Certain terms or conditions in dealership contract or lease prohibited--Not applicable to lease or sale of real property.
No manufacturer may require a dealer to agree to the inclusion of a term or condition in a dealership contract, or in any lease or agreement ancillary or collateral to a dealership contract, as a condition to the offer, grant, or renewal of such dealership contract, lease, or agreement, that:
(1)Requires the dealer to waive trial by jury in cases involving the manufacturer;
(2)Requires that disputes between the manufacturer and dealer be submitted to arbitration or to any other binding alternate dispute resolution procedure. However, any dealership contract, lease, or agreement may authorize the submission of a dispute to arbitration or to binding alternate dispute resolution if the manufacturer and dealer voluntarily agree to submit the dispute to arbitration or binding alternate dispute resolution at the time the dispute arises; or
(3)Requires a dealer to pay the attorney fees of a manufacturer.
This section does not apply to any agreement that has as its main objective the lease or sale of real property.
Source:
SL 1999, ch 200, §3.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-16 - Definitions.

37-5-16. Definitions.
Terms used in §§37-5-16 to 37-5-18, inclusive, shall only be used for the purposes of §§37-5-16 to 37-5-18, inclusive, and mean:
(1)"Retailer of outdoor power equipment," a business that purchases outdoor power equipment for resale including: light industrial lawn and garden equipment, handheld lawn and garden equipment, snow removal equipment, and small engines and other power sources that operate such equipment;
(2)"Manufacturer," a person who manufactures or assembles outdoor power equipment and sells outdoor power equipment directly or through a distributor to a retailer of outdoor power equipment and provides a warranty;
(3)"Warranty," a commitment by a manufacturer to provide parts and labor for the outdoor power equipment they manufacture that is defective or needs adjustment or repair.
Source:
SL 2004, ch 255, §1.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-17 - Manufacturer of outdoor power equipment required to compensate retailer for warranty work--Amount of compensation.

37-5-17. Manufacturer of outdoor power equipment required to compensate retailer for warranty work--Amount of compensation.
Any manufacturer of outdoor power equipment that authorizes the retailer of outdoor power equipment selling such equipment to perform the warranty work shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor to the retailer. Time allowances for diagnostic and performance of warranty work and service shall be adequate for the work to be performed. The hourly labor rate paid to the retailer for warranty services may not be less than the rate charged by the retailer 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 amount paid by the retailer to acquire the parts plus a reasonable allowance for handling, which may not be less than thirty percent.
Source:
SL 2004, ch 255, §2.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-18 - Inapplicability of §§ 37-5-16 and 37-5-17 where only method of sales is through retailer with exclusive trade territory.

37-5-18. Inapplicability of §§37-5-16 and 37-5-17 where only method of sales is through retailer with exclusive trade territory.
The provisions of §§37-5-16 and 37-5-17 do not apply if the manufacturer's only method of sales is a contract with the retailer that provides for an exclusive trade territory and requires the retailer to make warranty repairs on such equipment.
Source:
SL 2004, ch 255, §3.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05 - Franchises Of Dealers In Vehicles, Implements And Equipment › Section 37-5-19 - Civil action for violation of chapter.

37-5-19. Civil action for violation of chapter.
Any dealer, as defined in §37-5-12.1 or subdivision 37-5-13(1), whose business or property is injured by a violation of this chapter may bring a civil action to recover all court costs and reasonable attorney's fees in addition to all other remedies of law.
Source:
SL 2012, ch 197, §1.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-2 - Jurisdiction.

37-5B-2. Jurisdiction.
This chapter applies to any franchise that is offered or sold in this state. A franchise is offered in this state if:
(1)An offer to sell is made in this state;
(2)The offer originates from within this state; or
(3)The offer is directed by the offeror into this state from outside this state and is received where directed.
A franchise is sold in this state if the offer to sell is accepted in this state.
A franchise is offered or sold in this state if the franchise is offered or sold to a resident of this state and the franchise is to be operated in this state, or, if the franchisee is domiciled in this state when the franchised business is or will be operated in this state.
Source:
SL 2008, ch 203, §2.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-3 - Offer or sale not made in state.

37-5B-3. Offer or sale not made in state.
An offer to sell is not made in this state solely because the offer appears in a newspaper or other publication of general and regular circulation which had more than two-thirds of its circulation outside this state during the past twelve months or solely because the offer appears in a broadcast or transmission originating outside this state.
An offer to sell or to purchase is not made in this state if the offer to sell is made over the internet or similar proprietary or common carrier electronic system if the following conditions are met:
(1)The internet offer indicates that the franchise is not being offered to residents of South Dakota;
(2)The internet offer is not directed to any person in South Dakota by or on behalf of the franchisor or anyone acting with the franchisor's knowledge; and
(3)No franchise is sold in South Dakota by or on behalf of the franchisor until the offering has been filed by notice and the franchise disclosure document has been delivered to the purchaser prior to the sale and in compliance with this chapter.
An offer or sale of a franchise is not made in this state if the offer or sale is made to a person not a resident of this state, if the franchise will not be located in this state, and if the offer or sale does not constitute a violation of the laws of the state or foreign jurisdiction in which the offeree or purchaser is present and is not part of an unlawful attempt to evade this chapter.
Source:
SL 2008, ch 203, §3.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-4 - Notice filing required.

37-5B-4. Notice filing required.
It is unlawful for any person to offer or sell a franchise in this state unless the franchise has properly notice filed under this chapter or is exempt from notice filing pursuant to §§37-5B-12 to 37-5B-15, inclusive.
Source:
SL 2008, ch 203, §4.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-6 - Amendments.

37-5B-6. Amendments.
The director may require the franchisor to alter or amend the proposed disclosure document in order to assure full and fair disclosure to prospective purchasers.
Source:
SL 2008, ch 203, §6.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-7 - Updating disclosure documents.

37-5B-7. Updating disclosure documents.
There is no filing required with the division for updating disclosure documents; but disclosure information shall be updated as follows:
(1)Any information in the disclosure document shall be current as of the close of the franchisor's most recent fiscal year. After the close of the fiscal year, the franchisor shall, within one hundred twenty days, prepare a revised disclosure document, after which a franchise seller may distribute only the revised document and no other disclosure document;
(2)The franchisor shall, within a reasonable time after the close of each quarter of the fiscal year, prepare revisions to be attached to the disclosure document to reflect any material change to the disclosures included, or required to be included, in the disclosure document. Each prospective franchisee shall receive the disclosure document and the quarterly revisions for the most recent period available at the time of disclosure;
(3)If applicable, the annual update shall include the franchisor's first quarterly update, either by incorporating the quarterly update information into the disclosure document itself, or through an addendum;
(4)When furnishing a disclosure document, the franchise seller shall notify the prospective franchisee of any material changes that the seller knows or should have known occurred in the information contained in any financial performance presentation; and
(5)Information that must be audited pursuant to the disclosure requirements need not be audited for quarterly revisions if the franchisor states in immediate conjunction with the information that the information was not audited.
Source:
SL 2008, ch 203, §7.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-8 - Start-up financial statements.

37-5B-8. Start-up financial statements.
For the purposes of §37-5B-7, a start-up franchise system that does not yet have audited financial statements, may phase-in the use of audited financial statements by providing, at a minimum, the following statements in the times indicated below:
(1)The franchisor's first partial or full fiscal year selling franchises: an unaudited opening balance sheet;
(2)The franchisor's second fiscal year selling franchises: audited balance sheet opinion as of the end of the first partial or full fiscal year selling franchises; and
(3)The franchisor's third and subsequent fiscal years selling franchises: all required financial statements for the previous fiscal year, plus any previously disclosed audited statements that still must be disclosed such as the franchisor's balance sheet for the previous two fiscal year-ends before the disclosure document issuance date and statements of operations, stockholders equity, and cash flows for each of the franchisor's previous three fiscal years.
Source:
SL 2008, ch 203, §8.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-9 - Phase-in of financial statements.

37-5B-9. Phase-in of financial statements.
For the purposes of §37-5B-7, a start-up franchisor may phase-in the disclosure of audited financial statements, if the franchisor:
(1)Prepares audited financial statements as soon as practicable;
(2)Prepares unaudited statements in a format that conforms as closely as possible to audited statements; and
(3)Includes one or more years of unaudited financial statements or clearly and conspicuously discloses in the disclosure document that the franchisor has not been in business for three years or more, and cannot include all of the financial statements required in the disclosure document such as the franchisor's balance sheet for the previous two fiscal year-ends before the disclosure document issuance date and statements of operations, stockholders equity, and cash flows for each of the franchisor's previous three fiscal years.
Source:
SL 2008, ch 203, §9.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-10 - Negotiation of terms.

37-5B-10. Negotiation of terms.
This chapter does not prevent the negotiation of the terms and conditions of a franchise before it is sold. After the initial offer, a franchisor need not amend its disclosure document to negotiate with an offeree, or make supplementary disclosure to that offeree, by reason of a change negotiated in the terms and conditions of a franchise.
Source:
SL 2008, ch 203, §10.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-11 - Signed receipt.

37-5B-11. Signed receipt.
The person offering or selling any franchise subject to the requirements of §§37-5B-17 and 37-5B-18 shall obtain a receipt, signed by the prospective franchisee, acknowledging that the prospective franchisee has received a copy of the disclosure document prior to the prospective franchisee affixing a signature to any franchise or other agreement and prior to the payment of any consideration by the prospective franchisee. The receipt shall be kept in the possession of the franchise seller, subject to inspection by the director, for a period of three years from the date the receipt is taken.
Source:
SL 2008, ch 203, §11.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-12 - Exemptions from chapter.

37-5B-12.Exemptions from chapter.
The following are exempt from this chapter:
(1)Any franchise relationship covered by the Petroleum Marketing Practices Act, 15 U.S. C. 2801, as of January 1, 2008;
(2)Any franchise relationship where there is no written document that describes any material term or aspect of the relationship or arrangement;
(3)Any fractional franchise;
(4)Any leased department;
(5)The total of the required payments, or commitments to make a required payment, to the franchisor or an affiliate that are made any time from before to within six months after commencing operation of the franchisee's business is less than five hundred dollars;
(6)Any franchise relationship covering farm machinery, motor vehicles, or recreational vehicles, including snowmobiles, motorcycles, motor homes, mobile homes, and manufactured homes.
Source:
SL 2008, ch 203, §12.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-13 - Exemptions from notice filing and obligations to deliver disclosure document.

37-5B-13. Exemptions from notice filing and obligations to deliver disclosure document.
The following franchises are subject to this chapter but are exempt from §§37-5B-4 and 37-5B-17, if any of the following conditions are satisfied:
(1)The franchisee's initial investment, excluding any financing received from the franchisor or an affiliate, and excluding the cost of unimproved land, totals at least one million dollars and the prospective franchisee signs an acknowledgment verifying the grounds for the exemption. The acknowledgment shall state: The franchise sale is for more than one million dollars, excluding the cost of unimproved land and any financing received from the franchisor or an affiliate;
(2)The franchisee (or its parent or any affiliates) is an entity that has been in business for at least five years and has a net worth of at least five million dollars; or
(3)The offer or sale of a franchise by a personal representative, sheriff, marshal, receiver, trustee, trustee in bankruptcy, guardian, or conservator on behalf of a person other than the franchisor or the estate of the franchisor; or
(4)One or more purchasers of at least a fifty percent ownership interest in the franchise; within sixty days of the sale, has been, for at least two years, an officer, director, general partner, individual with management responsibility for the offer and sale of the franchisor's franchises or the administrator of the franchised network; or within sixty days of the sale, has been, for at least two years, an owner of at least a twenty-five percent interest in the franchise.
Source:
SL 2008, ch 203, §13.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-14 - Exemptions from notice filing.

37-5B-14. Exemptions from notice filing.
The following franchises are subject to this chapter but are exempt from §37-5B-4 if any of the following conditions are satisfied:
(1)The offer or sale to an existing franchisee of an additional franchise that is substantially the same as the franchise that the franchisee has operated for at least two years at the time of the offer or sale; or
(2)The offer or sale of a franchise to a bank, saving and loan association, financial organization or life insurance corporation within the meanings given these terms by chapters 43-41B, 52-1, and 58-1.
Source:
SL 2008, ch 203, §14.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-15 - Exemptions by director.

37-5B-15. Exemptions by director.
The director may by rule or order exclude the offer and sale of a franchise from the requirements of §§37-5B-4 and 37-5B-17 if the filing or disclosure is not necessary or appropriate in the public interest or for the protection of prospective franchisees.
Source:
SL 2008, ch 203, §15.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-16 - Thresholds.

37-5B-16. Thresholds.
For purposes of the exemptions set forth in subdivision 37-5B-12(5) and subdivisions 37-5B-13(1) and (2), the director may adjust by rule or order the size of the thresholds.
Source:
SL 2008, ch 203, §16.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-17 - Delivery of disclosure document.

37-5B-17. Delivery of disclosure document.
In connection with the offer or sale of a franchise in this state, unless the transaction is exempted by the provisions of §§37-5B-12 to 37-5B-16, inclusive, it is a prohibited practice and a violation of this chapter for any person, directly or indirectly, to:
(1)Fail to furnish a prospective franchisee with a copy of the franchisor's current disclosure document at least fourteen calendar-days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed franchise sale;
(2)Alter unilaterally and materially the terms and conditions of the basic franchise agreement or any related agreements attached to the disclosure document without furnishing the prospective franchisee with a copy of each revised agreement at least seven calendar-days before the prospective franchisee signs the revised agreement. Any change to an agreement that arises out of negotiations initiated by the prospective franchisee does not trigger this seven calendar-day period; or
(3)Fail to include all of the information required in the disclosure document if preparing the disclosure document to be furnished to a prospective franchisee. A franchise seller is liable for a violation of this subdivision if the seller either directly participated in the preparation of the disclosure document or had the authority to control those who did.
Source:
SL 2008, ch 203, §17.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-18 - Time of delivery of disclosure document.

37-5B-18. Time of delivery of disclosure document.
For purposes of subdivisions 37-5B-17(1) and (2), the franchisor has furnished the disclosure documents by the required date if:
(1)A copy of the disclosure document was hand-delivered, faxed, e-mailed, or otherwise delivered to the prospective franchisee by the required date;
(2)Directions for accessing the disclosure document on the internet were provided to the prospective franchisee by the required date; or
(3)A paper or tangible electronic copy was sent to the address specified by the prospective franchisee by first-class United States mail at least three days before the required date.
Source:
SL 2008, ch 203, §18.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-19 - Books and records.

37-5B-19. Books and records.
Every franchisor offering or selling a franchise in this state shall maintain complete and accurate books and records of the offers and sales of franchises. The books and records shall include all of the disclosure documents and advertising and correspondence that have been used with franchisees and prospective franchisees including past and present operations manuals, training records, training manuals, copies of executed agreements, and any due diligence records concerning franchisees. The books and records shall be maintained at an office readily accessible to the franchisor for three years. The books and records may be kept on photographic or electronic media but shall be printed if the director requests.
Source:
SL 2008, ch 203, §19.
2023 South Dakota Codified Laws › Title 37 - Trade Regulation › Chapter 05B - Franchise Investment › Section 37-5B-21 - Arbitration.

37-5B-21. Arbitration.
A written provision in a franchise contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of the contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of the contract, transaction, or refusal, is valid, irrevocable, and enforceable except upon such grounds as exist at law or in equity for the revocation of any contract. However, any condition, stipulation, or provision requiring a franchisee to waive compliance with or relieving a person of a duty or liability imposed by or a right provided by this chapter or a rule or order under this chapter is void.
Source:
SL 2008, ch 203, §21.