ORS 650.132
Prohibition of coerced sales of extended service contracts, extended maintenance plans or guaranteed asset protection waivers

(1)

Intentionally left blank —Ed.

(a)

A manufacturer, distributor or importer may not, through any of the methods described in paragraph (b) of this subsection, directly or indirectly coerce or attempt to coerce a dealer to advertise, promote, offer or sell an extended service contract, an extended maintenance plan, a guaranteed asset protection waiver or other arrangement that pays a purchaser the remaining balance on a note secured by a motor vehicle if the motor vehicle is lost, stolen or damaged beyond repair, or a similar product or service, if the manufacturer, distributor or importer provides, originates, sponsors or endorses the product or service.

(b)

Prohibited methods for coercing or attempting to coerce a dealer include, but are not limited to:

(A)

Stating to a dealer that the dealer’s failure to advertise, promote, offer or sell the products or services described in paragraph (a) of this subsection will substantially and adversely affect the dealer’s business or the dealer’s relationship with the manufacturer, distributor or importer;

(B)

Requiring the dealer in a franchise agreement to advertise, promote, offer or sell the products or services described in paragraph (a) of this subsection;

(C)

Measuring the dealer’s performance in a franchise on the basis of whether, or the extent to which, the dealer advertises, promotes, offers or sells the products or services described in paragraph (a) of this subsection; or

(D)

Requiring the dealer to advertise, promote, offer or sell the products or services described in paragraph (a) of this subsection to the exclusion of other, similar products or services that a person other than the manufacturer, distributor or importer offers.

(2)

The prohibition in subsection (1) of this section does not affect a manufacturer’s, distributor’s or importer’s right or ability to:

(a)

Provide incentives to a dealer that voluntarily decides to advertise, promote, offer or sell the products or services described in subsection (1)(a) of this section; or

(b)

Require a dealer that sells a product or service that is similar to the products or services described in subsection (1)(a) of this section, but that the manufacturer, distributor or importer does not provide, originate, sponsor or endorse, to notify a customer in writing, and to obtain the customer’s acknowledgment, that the manufacturer, distributor or importer does not provide, originate, sponsor or endorse the product or service. [2015 c.584 §2]

Source: Section 650.132 — Prohibition of coerced sales of extended service contracts, extended maintenance plans or guaranteed asset protection waivers, https://www.­oregonlegislature.­gov/bills_laws/ors/ors650.­html (accessed May 26, 2025).

650.005
Definitions for ORS 650.005 to 650.100 650.010
Franchise sellers required to maintain books and records 650.015
When franchise sale or offer for sale is made in this state 650.020
Liability of franchise seller 650.050
Rules 650.055
General duties and powers of director 650.057
Orders issued under ORS 650.055 650.060
Investigative powers of director 650.065
Injunctive relief 650.070
Director as agent for service of process 650.075
Manner of executing service of process 650.080
When personal service of process required 650.085
Other civil or criminal remedies unaffected 650.095
Civil penalties 650.100
Disposition of civil penalties 650.120
Definitions for ORS 650.120 to 650.170 650.123
Use of protected dealer data 650.130
Prohibited conduct by manufacturer, distributor or importer 650.132
Prohibition of coerced sales of extended service contracts, extended maintenance plans or guaranteed asset protection waivers 650.133
Constructing, altering or remodeling dealer facility 650.140
Good cause required to terminate dealer franchise 650.145
Compensation due dealer upon termination of franchise 650.150
Enjoining establishment of certain franchises or relocation of existing dealership in same market area 650.153
Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer 650.155
Liability of manufacturer for damages to vehicles before delivery to carrier 650.158
Predelivery preparation and warranty service 650.161
Compensation for repairs to vehicles subject to recall 650.162
Transfer, assignment or sale of interest in dealership or franchise 650.165
Prohibited franchise conditions 650.167
Violation of ORS 650.140 or 650.150 as irreparable injury 650.170
Dealer’s remedy 650.200
Definitions for ORS 650.200 to 650.250 650.205
Prohibited conduct by franchisor 650.210
Rights and prohibitions governing relationship between franchisor and franchisee 650.215
Prohibited conduct in offer, sale or purchase of franchise 650.220
Consent of franchisor to sale, assignment or transfer of franchise 650.225
Death of franchisee 650.230
Transfer of franchise to corporation in which franchisee has controlling interest 650.235
Franchisor prohibited from requiring operation of service station in excess of 16 hours per day 650.240
When transfer of motor fuel a sale in commerce 650.245
Principle of good faith 650.250
Injunctive relief or damages 650.300
Definitions for ORS 650.300 to 650.480 650.310
Good cause 650.320
Dealership agreement 650.330
Comparable terms and conditions 650.340
Termination, cancellation or failure to renew 650.350
Dealer’s rights upon termination, cancellation or failure to renew 650.360
Coercion prohibited 650.370
Transfer by dealer 650.380
Dealer’s successor 650.390
Dealer compensation for warranty service 650.400
Recalls 650.410
Dealer’s warranty obligations 650.420
Required disclosures 650.430
Damaged or defective vehicles 650.440
Grantor’s ownership, operation or control of dealership 650.450
Indemnification 650.460
Indemnification 650.470
Remedies 650.480
Remedies

Current through early 2026

§ 650.132. Prohibition of coerced sales of extended service contracts, extended maintenance plans or guaranteed asset protection waivers's source at oregon​.gov