§ 15-245A.2. Contents of supplier notice of termination - Supplier failure to approve or deny request - Death of dealer.  


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  • A.  Except as otherwise provided in this section, a supplier must provide a dealer at least one hundred eighty (180) days prior written notice of termination of a dealer agreement.  The notice must state all reasons constituting good cause for such termination and must state that the dealer has sixty (60) days in which to cure any claimed deficiency.  If the deficiency is rectified within sixty (60) days, the notice will be void.  A supplier, other than a specialty agricultural equipment supplier, may not terminate a dealer agreement for the reason set forth in paragraph 8 of subsection A of Section 5 of this act unless the supplier gives the dealer notice of such action at least two (2) years before the effective date of the action.  If the dealer achieves the supplier’s requirements for reasonable standards or performance objectives before the expiration of the two-year notice period, the notice will be void and the dealer agreement will continue in full force and effect.  The notice and right to cure provisions under this section shall not apply if the reason for termination is for any reason set forth in paragraphs 1 through 7 of subsection A of Section 5 of this act.

    B.  If a supplier has contractual authority to approve or deny a request for a sale or transfer of a dealer’s business or an equity ownership interest therein, the supplier shall approve or deny such a request within sixty (60) days after receiving a written request from the dealer.  If the supplier has neither approved nor denied the request within the sixty-day period, the request will be deemed approved.  The dealer’s request shall include reasonable financial, personal background, character references and work history information for the acquiring persons.  If a supplier denies a request made pursuant to this subsection, the supplier must provide the dealer with a written notice of the denial that states the reasons for the denial.  A supplier may only deny a request based on the failure of the proposed transferees to meet the reasonable requirements consistently imposed by the supplier in determining approval of the transfer and/or approvals of new dealers.

    C.  If a dealer dies and the supplier has contractual authority to approve or deny a request for a sale or transfer of the dealer’s business or equity ownership interest therein, the dealer’s estate, or such other person with authority to transfer assets of the dealer, will have one hundred eighty (180) days to submit to the supplier a written request for a sale or transfer of the business or equity ownership interest.  If the request is timely submitted, the supplier shall approve or deny the request in accordance with subsection B of this section.  Notwithstanding anything to the contrary contained in the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers and Dealers Act, any attempt by the supplier to terminate the dealer or the dealership as a result of the death of a dealer will be delayed until there has been compliance with the terms of this section or the one-hundred-eighty-day period has expired, as applicable.

    D.  The provisions of this section shall not apply to single-line dealer agreements.

Added by Laws 2011, c. 156, § 6, eff. Nov. 1, 2011.