TITLE 49

MOTOR VEHICLES

CHAPTER 16

DEALERS AND SALESMEN LICENSING

49-1623.  Product liability indemnification. Notwithstanding the terms of any franchise agreement, it shall be unlawful for any manufacturer to fail to indemnify and hold harmless its franchised dealers against any judgment or settlement for damages, including court costs and reasonable attorney fees of the dealer, arising out of complaints, claims or lawsuits including strict liability, negligence, misrepresentation, warranty (express or implied), or rescission of the sale, to the extent that the judgment or settlement relates to the alleged defective or negligent manufacture, assembly or design of new vehicles, parts or accessories or other functions by the manufacturer, beyond the control of the dealer.

History:

[49-1623, added 1988, ch. 265, sec. 396, p. 783.]