Factory store prohibited - Penalty
N.D. Cent. Code § 39-22-24
in effect39-22-24. Factory store prohibited - Penalty
A manufacturer, importer, or distributor of new motor vehicles, or a subsidiary thereof, may
not own, operate, or control a motor vehicle dealership in this state. This section does not apply
if:
1. The ownership and operation is for a temporary period not to exceed one year during
the transition from one owner or operator to another;
2. The dealership is being sold under a bona fide contract or purchase option to the
operator of the dealership, or a contract exists under which the operator of the
dealership can expect to acquire full ownership of or a controlling interest in the
dealership, and after the transfer of ownership is completed the dealership will not be
owned, operated, or controlled by the manufacturer, importer, or distributor, or a
subsidiary thereof; or
3. The department determines there is no prospective independent dealer available to
own or operate the dealership in a manner consistent with the public interest and
meeting the requirements of this chapter.
Any person violating this section is guilty of a class A misdemeanor.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t39c22.pdf#nameddest=39-22-24Fetched: 10/16/2026