2014 Kentucky Revised Statutes CHAPTER 190A - RECREATIONAL VEHICLE SALES 190A.040 Recreational vehicle manufacturer may terminate or not renew a new recreational vehicle dealer's agreement with good cause -- Determination of good cause -- Notice of termination or nonrenewal of dealer agreement.
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190A.040 Recreational vehicle manufacturer may terminate or not renew a
new recreational vehicle dealer's agreement with good cause -Determination of good cause -- Notice of termination or nonrenewal of
dealer agreement.
(1)
(2)
(3)
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.
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.
(e)
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
(30) days after the written notice by the manufacturer.
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.
Effective:January 1, 2015
History: Created 2014 Ky. Acts ch. 27, sec. 4, effective January 1, 2015.
Legislative Research Commission Note (1/1/2015). Under the authority of KRS
7.136(1), the Reviser of Statutes has restructured subsection (3) of this statute
and changed references therein to correspond. No substantive change has
been made.
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