Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer
Or. Rev. Stat. § 650.153
in effect650.153. Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer
(1) If a new motor vehicle becomes inoperative prior to being sold to a consumer, the franchisor is liable for the repair of the motor vehicle if the motor vehicle is inoperative due to a mechanical failure that is not the result of negligence on the part of the franchisee.
(2) Whenever a new motor vehicle becomes inoperative, the franchisee shall notify the franchisor and request authorization from the franchisor to repair the vehicle.
(3) If the franchisor refuses or fails to authorize repair of the inoperative motor vehicle within 30 business days after receiving notice under subsection (2) of this section, ownership of the new motor vehicle shall revert back to the franchisor, and the franchisee shall have no obligation, financial or otherwise, with respect to the motor vehicle.
(4) If the franchisor is unable to deliver to the franchisee the parts needed to repair an inoperative new motor vehicle within 30 business days after receiving notice under subsection (2) of this section, ownership of the new motor vehicle shall revert to the franchisor, and the franchisee shall have no obligation, financial or otherwise, with respect to the motor vehicle.
1999 c.660 §8; 2005 c.22 §453
Source: Oregon Legislature (oregonlegislature.gov)URL: https://www.oregonlegislature.gov/bills_laws/ors/ors650.html#650.153Fetched: 10/20/2026