Sec. 42-133w. Manufacturer or distributor to compensate dealer upon termination, nonrenewal or cancellation. - Connecticut Statutes

      Sec. 42-133w. Manufacturer or distributor to compensate dealer upon termination, nonrenewal or cancellation. (a) Upon the termination, nonrenewal or cancellation of any franchise under sections 42-133r to 42-133ee, inclusive, the dealer shall be allowed fair and reasonable compensation by the manufacturer or distributor for: (1) The new current model and one prior model year motor vehicle inventory acquired from the manufacturer or distributor unaltered and undamaged; (2) all new, unused and undamaged parts listed in the current parts catalog acquired from a manufacturer or distributor or its approved or recommended sources at the dealer price listed in such catalog, less applicable allowances plus five per cent of the catalog price of the part for the cost of packing and returning the parts to the manufacturer or distributor; (3) supplies and furnishings if purchased from the manufacturer or distributor or its approved sources; and (4) any special tools or equipment offered for sale during the three years preceding termination, nonrenewal or cancellation and each trademark or trade name bearing sign which was recommended or required by the manufacturer or distributor at fair market value at the time of notice of termination.

      (b) Compensation under subsection (a) of this section shall be paid by the manufacturer or distributor within ninety days of the effective date of termination, cancellation or nonrenewal if the dealer has title to the vehicle inventory and other items and is able to convey title to the manufacturer or distributor.

      (P.A. 82-445, S. 6, 15; P.A. 83-198, S. 6, 11; P.A. 95-245, S. 2, 3; P.A. 05-288, S. 145.)

      History: P.A. 83-198 subjected distributors to the provisions of this section; P.A. 95-245 amended Subsec. (a) to insert new language as Subdiv. (2) allowing dealers to be compensated for all new, unused and undamaged parts listed in current parts catalog at dealer price with allowances and adjustments, renumbering the remaining Subdivs. accordingly, and to insert new language as Subdiv. (4) allowing dealers to be compensated for equipment offered for sale during three years preceding termination, nonrenewal or cancellation and for each trademark or trade name bearing sign at fair market value and amended Subsec. (b) to insert "vehicle" before "inventory", effective July 1, 1995; P.A. 05-288 made a technical change in Subsec. (b), effective July 13, 2005.