§ 4076.
360 words·~2 min read·
/vt/title-9/chapter-107/4076A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 4076. Transfer of business
(a)No supplier shall unreasonably withhold consent to the transfer of the interest of any dealer, officer, member, or partner to any other party or parties. However, no dealer, officer, member, or partner shall have the right to sell, transfer, or assign the equipment dealership or power of management or control of the dealership without the written consent of the supplier. Should a supplier determine that the designated transferee does not meet its reasonable business ability, business experience, character standards, and capitalization requirements, the supplier shall provide the dealer with written notice of the supplier’s objection and specific reasons for withholding consent. A supplier shall have 90 days to consider a dealer’s written request to make such a transfer.
(b)No supplier shall unreasonably withhold consent to the transfer of the dealer’s interest in the dealership to a member or members of the family of the dealer or the principal owner of the dealership, if the family member meets the reasonable business ability, business experience, and character standards of the supplier, and if the transferee can demonstrate that the dealership will be adequately capitalized. Should a supplier determine that the designated family member does not meet those requirements, the supplier shall provide the dealer with written notice of the supplier’s objection and specific reasons for withholding its consent. A supplier shall have 90 days to consider a dealer’s written request to make a transfer to a family member. As used in this subsection, “family” means and includes the spouse, parent, siblings, children, stepchildren, and lineal descendants, including those by adoption of the dealer or principal owner of the dealer.
(c)Notwithstanding subsection
(b)of this section, in the event that a supplier and dealer have duly executed an agreement concerning succession rights prior to the equipment dealer’s death, and if the agreement has not been revoked or otherwise terminated by either party, the agreement shall be observed.
(d)In any dispute arising under this section, the supplier shall have the burden of proving a substantial and reasonable justification for the denial of consent. (Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)