190A.040 Recreational vehicle manufacturer may terminate or not renew a new
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/ky/190a-040A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
recreational vehicle dealer's agreement with good cause -- Determination of
good cause -- Notice of termination or nonrenewal of dealer agreement.
(1)A recreational vehicle manufacturer, directly or through any officer, agent, or
employee, may terminate or not renew a new recreational vehicle dealer's agreement
with good cause.
(2)A recreational vehicle manufacturer has the burden of showing good cause when
terminating or not renewing a dealer agreement for cause. For the purpose of
determining whether there is good cause for the proposed action, any of the
following factors may be considered:
(a)The extent of the penetration of the dealer in the area of sales responsibility;
(b)The extent and quality of the service of the dealer under recreational vehicle
warranties;
(c)The nature and extent of the investment of the dealer in the business of the
dealer;
(d)The adequacy of the service facilities, equipment, parts, supplies, and
personnel of the dealer;
(e)The effect of the proposed action on the community;
(f)Whether the dealer fails to follow agreed-upon procedures or standards related
to the overall operation of the dealership; and
(g)The performance by the dealer under the terms of the dealer agreement.
(a)Except as provided in paragraph
(d)or
(e)of this subsection, the manufacturer
shall provide written notice at least ninety
(90)days before the effective date
of the termination or nonrenewal of the dealer agreement in the event the
dealer is being terminated for good cause.
(b)The notice shall state all of the reasons for the termination or nonrenewal of
the dealer agreement.
(c)The notice shall state that if the dealer provides to the manufacturer within
thirty
(30)days after the dealer receives the original notice a written
notification of the intent of the dealer to cure all claimed deficiencies, the
dealer shall have ninety
(90)days from the receipt of the original notice to
correct the claimed deficiencies. If all of the deficiencies are corrected within
the ninety
(90)day time period, the notice shall be deemed void and the
manufacturer shall not terminate or not renew the dealer agreement because of
the claimed deficiencies stated in the notice. If the dealer does not provide a
notification of intent to cure deficiencies within the thirty
(30)day time
period, the termination or nonrenewal of the dealer agreement shall take effect
thirty
(30)days from the dealer's receipt of the original notice.
(d)A manufacturer may reduce the notice period of this subsection from ninety
(90)days to thirty
(30)days if the grounds for termination or nonrenewal of
the dealer agreement by the manufacturer are any of the following factors:
1. A conviction of a felony or a plea of guilty or nolo contendere to a
felony by a dealer or an owner of a dealership of a crime that was
committed during the time frame of the current dealer agreement;
provided there is full disclosure, in writing, of any felony conviction or
plea of guilty or nolo contendere to any such felony crime that occurred
within ten
(10)years of entering into such dealer agreement;
2. The abandonment or closing of the business operations of the dealer for
ten
(10)consecutive business days without contacting the manufacturer
prior to the closing unless the closing is due to an act of God, strike,
labor difficulty, or other cause over which the dealer has no control;
3. A misrepresentation to the manufacturer by the dealer that materially
affects the business relationship between the dealer and the
manufacturer;
4. A suspension or revocation of the dealer's license, or refusal to renew
the dealer's license, by the Motor Vehicle Commission; or
5. A material violation of this chapter which is not cured within thirty
days after the written notice by the manufacturer.
(e)A manufacturer shall not be required to provide notice or an opportunity to
correct deficiencies under this subsection if the grounds for termination or
nonrenewal of the dealer agreement by the manufacturer include one
(1)of the
following:
1. The dealer becomes insolvent;
2. The dealer is bankrupt; or
3. The dealer makes an assignment for the benefit of creditors.