Section 45.25.160 - Prevention of or refusal to honor transfer of new motor vehicle dealership ownership(a) A manufacturer may not unreasonably prevent or refuse to honor the transfer of ownership of a new motor vehicle dealership to a buyer who is capable of being licensed as a new motor vehicle dealer in this state and who meets the standards established by the manufacturer, if the standards are reasonable and applied uniformly.(b) Within 30 days after receipt of a written request from a new motor vehicle dealer for transfer of the ownership of a new motor vehicle dealership, a manufacturer may request, and the new motor vehicle dealer shall promptly provide, supplementary information that is reasonably necessary for the manufacturer to determine whether the manufacturer will approve the request for the transfer. If a manufacturer refuses to approve the transfer, the manufacturer shall give written notice to the new motor vehicle dealer of the refusal. The manufacturer shall give the notice to the new motor vehicle dealer within 75 days after the date the manufacturer has received both the written transfer request and supplementary information requested under this subsection. The notice must state the specific grounds for the refusal to approve the transfer. The manufacturer shall give the notice under this subsection by personal service or certified mail with return receipt requested. If the manufacturer does not give the notice within the time allowed under this subsection and does not exercise a right of first refusal under (c) of this section, the request shall be considered approved.(c) A manufacturer or distributor may exercise a contractual right of first refusal with respect to the proposed sale or other transfer of the interest of the dealer in a new motor vehicle dealership if (1) the sale or other transfer is to a person who is not a family member of an owner of the dealership, a managerial employee of the dealership owning 15 percent or more of the dealership, or a corporation, partnership, or other legal entity owned by the existing owners of the dealership; in this paragraph, "family member" means(A) the spouse of an owner of the dealership;(B) the child, stepchild, grandchild, brother, sister, or parent of an owner of the dealership; or(C) a spouse of a person identified in (B) of this paragraph;(2) the manufacturer or distributor notifies the new motor vehicle dealer in writing of the intent to exercise the right of first refusal; within 30 days after receipt of a written request from a new motor vehicle dealer for transfer of the ownership of a new motor vehicle dealership, a manufacturer or distributor may request, and the new motor vehicle dealer shall promptly provide, related information generally used by a manufacturer or distributor to conduct its review of a proposed intent to exercise the right of first refusal and supplementary information that is reasonably necessary for the manufacturer or distributor to determine whether the manufacturer or distributor will exercise the right of first refusal; if the manufacturer or distributor decides to exercise the right of first refusal, the manufacturer or distributor shall give written notice to the new motor vehicle dealer of the decision within 75 days after receiving the completed transfer request, related information, and requested supplementary information; the manufacturer or distributor shall give the notice under this paragraph by personal service or certified mail with return receipt requested; if the manufacturer or distributor fails to notify the dealer within the 75-day period that the manufacturer or distributor will exercise the right of first refusal, the manufacturer or distributor may not exercise the right of first refusal;(3) the exercise of the right of first refusal provides to the new motor vehicle dealer the same compensation as, or greater compensation than, the new motor vehicle dealer had negotiated to receive from the proposed buyer or other transferee; and(4) the manufacturer or distributor agrees to pay the reasonable expenses, including reasonable attorney and accountant fees that do not exceed the usual, customary, and reasonable fees charged for similar work done in the state for other clients, incurred before the manufacturer or distributor exercised its right of first refusal by the proposed buyer or transferee to negotiate and implement the terms of the contract for the sale or transfer.Amended by SLA 2018, ch. 50,sec. 8, eff. 9/30/2018.