60-1438.01 Manufacturer or distributor; restrictions with respect to franchises and consumer care or service facilities. - Nebraska Statutes

60-1438.01. Manufacturer or distributor; restrictionswith respect to franchises and consumer care or service facilities.(1) For purposes of this section, manufacturer or distributor includes(a) a factory representative or a distributor representative or (b) a personwho is affiliated with a manufacturer or distributor or who, directly or indirectlythrough an intermediary, is controlled by, or is under common control with,the manufacturer or distributor. A person is controlled by a manufactureror distributor if the manufacturer or distributor has the authority directlyor indirectly, by law or by agreement of the parties, to direct or influencethe management and policies of the person. A franchise agreement with a Nebraska-licenseddealer which conforms to and is subject to theMotor Vehicle Industry Regulation Act is not control for purposesof this section.(2) Except as provided in this section, a manufacturer or distributorshall not directly or indirectly:(a) Own an interest in a franchise, franchisee, or consumer care orservice facility, except that a manufacturer or distributor may hold stockin a publicly held franchise, franchisee, or consumer care or service facilityso long as the manufacturer or distributor does not by virtue of holding suchstock operate or control the franchise, franchisee, or consumer care or servicefacility;(b) Operate or control a franchise, franchisee, or consumer care orservice facility; or(c) Act in the capacity of a franchisee.(3) A manufacturer or distributor may own an interest in a franchiseeor otherwise control a franchise for a period not to exceed twelve monthsafter the date the manufacturer or distributor acquires the franchise if:(a) The person from whom the manufacturer or distributor acquired thefranchise was a franchisee; and(b) The franchise is for sale by the manufacturer or distributor.(4) For purposes of broadening the diversity of its franchisees andenhancing opportunities for qualified persons who lack the resources to purchasea franchise outright, but for no other purpose, a manufacturer or distributormay temporarily own an interest in a franchise if the manufacturer's or distributor'sparticipation in the franchise is in a bona fide relationship with a franchiseeand the franchisee:(a) Has made a significant investment in the franchise, which investmentis subject to loss;(b) Has an ownership interest in the franchise; and(c) Operates the franchise under a plan to acquire full ownership ofthe franchise within a reasonable time and under reasonable terms and conditions.(5) On a showing of good cause by a manufacturer or distributor, theboard may extend the time limit set forth in subsection (3) of this section.An extension may not exceed twelve months. An application for an extensionafter the first extension is granted is subject to protest by a franchiseeof the same line-make whose franchise is located in the same community asthe franchise owned or controlled by the manufacturer or distributor.(6) The prohibition in subdivision (2)(b) of this section shall notapply to any manufacturer of manufactured housing, recreational vehicles,or trailers. SourceLaws 2000, LB 1018, § 3; Laws 2010, LB816, § 84.