Powersport Vehicle Franchise Act

The Powersport Vehicle Franchise Act was enacted to protect the welfare and economic interest of the State pertaining to the sale of "powersport vehicles".  The Act is regulated under the auspices of the Utah Department of Commerce.  Powersport vehicles are defined in the Act as: all terrain type I and type II "ATV" vehicles, snowmobiles, motorcycles, personal watercraft, motor-driven cycles, and mopeds.

The Act creates the Utah Powersport Vehicle Franchise Advisory Board and clarifies the duties of a franchisor and franchisee.  It requires that manufacturers or franchisors notify the Department and any existing franchisees of the same line-make in a given relevant market area of any intent to terminate, establish, or relocate a franchise dealership selling new powersport vehicles.  If existing franchisees protest the franchisor's proposed action, the Department is mandated to hold a hearing to determine whether good cause exists for such action.  The Act requires that franchisors and franchisees pay an annual registration fee, as determined by the Board and the Department of Commerce, to cover the cost of regulation.

For further information, please contact:
Masuda Medcalf, Administrative Law Judge (801) 530-7663.

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