Veh. Code, § 3061 · Article 4. Hearings on Franchise Modification, Replacement, Termination, Refusal to Continue, Delivery and Preparation Obligations, and Warranty Reimbursement
Veh. Code, § 3061
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
In determining whether good cause has been established for modifying, replacing, terminating, or refusing to continue a franchise, the board shall take into consideration the existing circumstances, including, but not limited to, all of the following:
(a) Amount of business transacted by the franchisee, as compared to the business available to the franchisee.
(b) Investment necessarily made and obligations incurred by the franchisee to perform its part of the franchise.
(c) Permanency of the investment.
(d) Whether it is injurious or beneficial to the public welfare for the franchise to be modified or replaced or the business of the franchisee disrupted.
(e) Whether the franchisee has adequate motor vehicle sales and service facilities, equipment, vehicle parts, and qualified service personnel to reasonably provide for the needs of the consumers for the motor vehicles handled by the franchisee and has been and is rendering adequate services to the public.
(f) Whether the franchisee fails to fulfill the warranty obligations of the franchisor to be performed by the franchisee.
(g) Extent of franchisee’s failure to comply with the terms of the franchise.
Notes and commentary — not statutory text
History
Amended by Stats. 1983, Ch. 142, Sec. 160.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=VEH§ionNum=3061.
- Text hash
- sha256 49bdca0951eab5dfcdd80d608b5549b113e14f6ba5216e7338b0ec32349c9fac
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.