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California Law (Last Updated: March 4, 2014) |
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Vehicle Code - VEH |
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Division 2. ADMINISTRATION |
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Chapter 6. New Motor Vehicle Board |
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ARTICLE 4. Hearings on Franchise Modification, Replacement, Termination, Refusal to Continue, Delivery and Preparation Obligations, and Warranty Reimbursement |
Section 3063.
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In determining whether good cause has been established for not entering into or relocating an additional franchise for the same line-make, the board shall take into consideration the existing circumstances, including, but not limited to, all of the following:
(a) Permanency of the investment.
(b) Effect on the retail motor vehicle business and the consuming public in the relevant market area.
(c) Whether it is injurious to the public welfare for an additional franchise to be established.
(d) Whether the franchisees of the same line-make in that relevant market area are providing adequate competition and convenient consumer care for the motor vehicles of the line-make in the market area which shall include the adequacy of motor vehicle sales and service facilities, equipment, supply of vehicle parts, and qualified service personnel.
(e) Whether the establishment of an additional franchise would increase competition and therefore be in the public interest.