Maryland Commercial Law Section 19-103

Article - Commercial Law

§ 19-103.

      (a)      A supplier may not directly or through an officer, agent, or employee terminate, cancel, fail to renew, or substantially change the competitive circumstances of a contract without good cause.

      (b)      (1)      Except as provided in paragraph (2) of this subsection, a supplier who terminates, cancels, fails to renew, or substantially changes the competitive circumstances of a contract with good cause is not required to provide any notice or the right to cure a deficiency to a dealer.

            (2)      If a supplier terminates, cancels, fails to renew, or substantially changes the competitive circumstances of a contract based upon the dealer's failure to capture the share of the market required in the contract and the supplier has worked with the dealer for a minimum of 12 months to gain the desired market share, the supplier shall provide a dealer with at least 90 days' written notice of the termination of the agreement and a 60 day right to cure.

      (c)      Notwithstanding any agreement to the contrary, a dealer who terminates a contract with a supplier shall notify the supplier of the termination within 90 days prior to the effective date of the termination.

      (d)      Each notification required under this section shall:

            (1)      Be in writing;

            (2)      Contain:

                  (i)      A statement of intention to terminate the contract;

                  (ii)      A statement of the reasons for the termination; and

                  (iii)      The date on which the termination takes effect; and

            (3)      Be delivered to the supplier or dealer by:

                  (i)      Certified mail; or

                  (ii)      Personal delivery.



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