2014 Kentucky Revised Statutes CHAPTER 190A - RECREATIONAL VEHICLE SALES 190A.050 New recreational vehicle dealer may terminate a dealer agreement with recreational vehicle manufacturer with or without good cause -- Conditions applicable to termination -- Burden of showing good cause -- Notice -- Clear title required for inventory to be repurchased by manufacturer.
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190A.050 New recreational vehicle dealer may terminate a dealer agreement
with recreational vehicle manufacturer with or without good cause -Conditions applicable to termination -- Burden of showing good cause -Notice -- Clear title required for inventory to be repurchased by
manufacturer.
(1)
(2)
(3)
A new recreational vehicle dealer may terminate a dealer agreement with a
recreational vehicle manufacturer with or without good cause. If the dealer
terminates or does not renew the dealer agreement with good cause, the
manufacturer shall comply with the provisions of subsection (5) of this section.
If the dealer terminates or does not renew the dealer agreement without good
cause, the provisions of subsection (5) of this section shall not apply. A dealer
that terminates a dealer agreement for good cause shall provide the
manufacturer with written notice at least ninety (90) days prior to the effective
date of the termination of the dealer agreement.
All of the following conditions shall apply to a termination of a dealer
agreement under this section for good cause:
(a) The notice described in subsection (1) of this section shall state all
reasons for the proposed termination; and
(b) The notice described in subsection (1) of this section shall state that if the
manufacturer provides to the dealer within thirty (30) days after the
manufacturer receives the notice of termination a written notification of
intent to cure all claimed deficiencies, the manufacturer shall have ninety
(90) days after the manufacturer's receipt of the original notice to correct
the deficiencies. If all of the deficiencies are corrected within the ninety
(90) day period, the notice shall be deemed void and the dealer shall not
terminate the dealer agreement because of the claimed deficiencies
stated in the notice. If the manufacturer does not provide a notification of
intent to cure deficiencies within thirty (30) days of receiving the original
notice, the termination shall take effect thirty (30) days from the
manufacturer's receipt of the original notice.
The dealer has the burden of showing good cause. Any of the following factors
shall be considered good cause for the proposed termination of a dealer
agreement by a dealer:
(a) A conviction of a felony or a plea of guilty or nolo contendere to a felony
by a manufacturer 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 the dealer
agreement;
(b) Abandonment or permanent closing of the business operations of the
manufacturer for ten (10) consecutive business days without contacting
the dealer prior to the closing, unless the closing is due to an act of God,
strike, labor difficulty, or other cause over which the manufacturer has no
control;
(c) A misrepresentation to the dealer by the manufacturer that materially
affects the business relationship between the dealer and manufacturer;
(d)
(4)
(5)
(6)
A material violation of any of the provisions of this chapter by the
manufacturer;
(e) A material breach of the dealer agreement by the manufacturer; or
(f) The manufacturer becomes insolvent, is bankrupt, or makes an
assignment for the benefit of the creditors.
A dealer is not required to provide notice or an opportunity to correct
deficiencies under this section if the grounds for termination or nonrenewal of
the dealer agreement by the dealer includes one (1) of the following:
(a) The manufacturer becomes insolvent;
(b) The manufacturer is bankrupt; or
(c) The manufacturer makes an assignment for the benefit of creditors.
If the manufacturer fails to provide the notice of intent to cure or fails to cure
any claimed deficiencies pursuant to subsection (2) of this section, the
manufacturer shall, at the election of the dealer and within forty-five (45) days
after termination or nonrenewal, repurchase as follows:
(a) All new, untitled recreational vehicles that were acquired from the
manufacturer within the twelve (12) months prior to the effective date of
the notice of termination of the dealer agreement that have not been
used, except for demonstration purposes, and that have not been altered
or damaged, may be repurchased at one hundred percent (100%) of the
net invoice cost of the recreational vehicles, including transportation, less
applicable rebates and discounts to the dealer. In the event any of the
vehicles repurchased pursuant to this paragraph are damaged, but do not
trigger a consumer disclosure requirement, the amount due the dealer
shall be reduced by the cost to repair the vehicle. Damage prior to
delivery to the dealer that is disclosed at the time of delivery shall not
disqualify repurchase of that vehicle under this section;
(b) All current and undamaged accessories and proprietary parts sold to the
dealer for resale by the manufacturer or distributor within the twelve (12)
months prior to the effective date of the termination of the dealer
agreement that are accompanied by the original invoice may be
repurchased at one hundred five percent (105%) of the original net price
paid to the manufacturer to compensate the dealer for handling, packing,
and shipping the accessories and parts; and
(c) Any properly functioning diagnostic equipment, special tools, current
signage, and other equipment and machinery at one hundred percent
(100%) of the dealer's net cost plus freight, destination, delivery, and
distribution charges and sales taxes, if any, shall be repurchased if it was
purchased by the dealer upon the manufacturer's request within five (5)
years before termination, cancellation, or nonrenewal, and it can no
longer be used in the normal course of the dealers' ongoing business.
The manufacturer or distributor shall pay the dealer within thirty (30) days
after receipt of the returned items.
The dealer shall show clear title to vehicle inventory and promptly return or
arrange for the return of all the items the manufacturer is required to
repurchase under subsection (5) of this section at the expense of the
manufacturer.
Effective:January 1, 2015
History: Created 2014 Ky. Acts ch. 27, sec. 5, effective January 1, 2015.
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