§15-245A.1. Good cause.
482 words·~2 min read·
/ok/title-15-contracts/15-245a-1·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The dealer must give the supplier at least thirty
(30)days’ prior written notice of termination. No supplier may terminate a dealer agreement without good cause. Except as otherwise specifically provided in the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers and Dealers Act, “good cause” means the failure by a dealer to substantially comply with essential and reasonable requirements imposed upon the dealer by the dealer agreement, provided such requirements are not different from those requirements imposed on other similarly situated dealers either by their terms or in the manner of their enforcement. In addition, good cause shall exist whenever:
1. The dealer or dealership has transferred a controlling ownership interest in its business without the supplier’s consent unless the supplier does not have the right to withhold consent under either the dealer agreement or under the terms of this act;
2. The dealer has filed a voluntary petition in bankruptcy or has had an involuntary petition in bankruptcy filed against it which has not been discharged within thirty
(30)days after the filing, or there has been a closeout or sale of a substantial part of the dealer’s assets related to the business, or there has been a commencement of dissolution or liquidation of the dealer;
3. There has been a deletion, addition or change in dealer or dealership locations without the prior written approval of the supplier;
4. The dealer has defaulted under any chattel mortgage or other security agreement between the dealer and the supplier, or there has been a revocation of any guarantee of the dealer’s present or future obligations to the supplier; provided, however, good cause will not
exist if a person revokes any guarantee in connection with or following the transfer of such person’s entire ownership interest in the dealer unless the supplier requires the person to execute a new guarantee of the dealer’s present or future obligations in connection with the transfer of ownership interest;
5. The dealer has failed to operate in the normal course of business for seven
(7)consecutive days or has otherwise abandoned its business;
6. The dealer has pleaded guilty to or has been convicted of a felony affecting the relationship between the dealer and supplier;
7. The dealer has engaged in conduct which is injurious or detrimental to the dealer’s customers or to the public welfare or the representation or reputation of the supplier’s product; or
8. The dealer has consistently failed to meet and maintain the supplier’s requirements for reasonable standards and performance objectives, so long as the supplier has given the dealer reasonable standards and performance objectives that are based on the manufacturer’s experience in other comparable market areas.
B. The provisions of this section will not apply to single-line dealer agreements. Added by Laws 2011, c. 156, § 5, eff. Nov. 1, 2011. Amended by Laws 2025, c. 12, § 3, eff. Nov. 1, 2025.