60-1451. Termination action; initiation; requirements.

297 words·~1 min read·/ne/chapter-60/60-1451

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)A manufacturer or distributor shall not initiate a termination action, including directly or through any officer, agent, or employee of such manufacturer or distributor, unless at least one reason showing that good cause exists for such termination action.

(2)A manufacturer or distributor that initiates a termination action has the burden of showing good cause for such termination action. For purposes of determining reasons showing that good cause exists for a manufacturer or distributor to initiate a termination action, any of the following factors may be considered:

(a)The extent of the affected dealer's penetration in the relevant market area for the relevant model or line-make;

(b)The nature and extent of the dealer's investment in the dealer's business;

(c)The adequacy of the dealer's service facilities, equipment, parts, supplies, and personnel;

(d)The effect of the termination action on the community;

(e)The extent and quality of the dealer's service under recreational vehicle warranties;

(f)The failure to follow agreed-upon, reasonable procedures or standards related to the overall operation of the dealership consistent with the law and the manufacturer-dealer agreement;

(g)The dealer's performance under the terms of the manufacturer-dealer agreement;

(h)The dealer or one of its owners being convicted of, or entering a plea of nolo contendere to, a felony;

(i)The abandonment or closing of the business operations of the dealer for ten consecutive business days unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the dealer has no control;

(j)A significant misrepresentation by the dealer that materially affects the business relationship between the manufacturer or distributor and the dealer; and

(k)A suspension, revocation, or nonrenewal of the dealer's license under the Motor Vehicle Industry Regulation Act to sell recreational vehicles.