2017 Kentucky Revised Statutes CHAPTER 190A - RECREATIONAL VEHICLE SALES .070 Conditions applicable to proposed sale of business assets, stock transfer, or other transaction that will result in a change of ownership of a new recreational vehicle dealer except in cases of death, incapacity, or retirement of designated principal of dealer -- Conditions applicable to those cases.
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190A.070 Conditions applicable to proposed sale of business assets, stock transfer,
or other transaction that will result in a change of ownership of a new
recreational vehicle dealer except in cases of death, incapacity, or retirement of
designated principal of dealer -- Conditions applicable to those cases.
(1)
(2)
All of the following conditions shall apply to a proposed sale of the business assets,
transfer of stock, or other transaction that will result in a change of ownership of a
new recreational vehicle dealer, except a transaction described in subsection (2) of
this section:
(a) The dealer shall provide written notice to the manufacturer at least ninety (90)
days prior to the proposed closing of the transaction;
(b) If the dealer is not in breach of the dealer agreement or in violation of the
provisions of this chapter at the time the dealer provides the notice described
in paragraph (a) of this subsection, the manufacturer shall not object to the
proposed transaction, unless:
1.
The prospective transferee was previously a party to a dealer agreement
with the manufacturer that the manufacturer terminated;
2.
In the proceeding ten (10) years, the prospective transferee was
convicted of a felony crime or any crime of fraud, deceit, or moral
turpitude;
3.
The prospective transferee does not have an application for a
recreational vehicle dealer license pending with the Motor Vehicle
Commission or a tentative dealer agreement with a recreational vehicle
manufacturer to conduct business as a dealer in this state relative to the
sale or transfer of the dealership;
4.
The prospective transferee does not have an active line of credit
sufficient to purchase recreational vehicles from the manufacturer
according to the terms of the dealer agreement; or
5.
In the preceding ten (10) years, the prospective transferee was bankrupt
or insolvent, made a general assignment for the benefit of creditors, or a
receiver, trustee, or conservator was appointed to take possession of the
business or property of the prospective transferee;
(c) If the manufacturer objects to the proposed transaction, the manufacturer shall
give written notice of its objection, including the reasons for the objection, to
the dealer within thirty (30) days after receiving the notice described in
paragraph (a) of this subsection. If the manufacturer does not give notice of an
objection within the thirty (30) day time period, the proposed transaction shall
be considered approved by the manufacturer; and
(d) For purposes of paragraph (c) of this subsection, the manufacturer has the
burden of demonstrating why the manufacturer objects to the proposed
transaction.
All of the following conditions apply concerning the death, incapacity, or retirement
of the designated principal of a dealer:
(a) A dealer agreement shall include a designated principal of the dealer. A dealer
(b)
(c)
(d)
(e)
agreement may identify a family member as the successor to the principal in
the event of the death, incapacity, or retirement of the designated principal or
include a succession plan of the dealer. A dealer may at any time change a
designation or succession plan by providing written notice to the
manufacturer;
The manufacturer shall not prevent or refuse to honor the succession to a
dealership by a family member of the deceased, incapacitated, or retired
designated principal of that dealer unless the manufacturer previously
provided written notice to the dealer of any objections to the succession plan
of the dealer within thirty (30) days after receiving the succession plan of the
dealer or any modification of the succession plan of the dealer;
Except as provided in paragraph (e) of this subsection, unless the dealer is in
breach of the dealer agreement, a manufacturer shall not object to the
succession to a dealership by a family member of the deceased, incapacitated,
or retired designated principal, unless:
1.
In the preceding ten (10) years, the successor was convicted of a felony
crime or any crime of fraud, deceit, or moral turpitude;
2.
In the preceding ten (10) years, the successor was bankrupt, insolvent, or
made an assignment for the benefit of creditors;
3.
The successor was previously a party to a dealer agreement with the
manufacturer that the manufacturer terminated for a breach of a dealer
agreement;
4.
The successor does not have an active line of credit sufficient to
purchase recreational vehicles from the manufacturer according to the
terms of the dealer agreement; or
5.
The successor does not have an application for a recreational vehicle
dealer license pending before the Motor Vehicle Commission or a
tentative dealer agreement with a recreational vehicle manufacturer to
conduct business as a dealer in this state;
The manufacturer has the burden of proof regarding any objection to the
succession to a dealership by a family member of the deceased, incapacitated,
or retired designated principal; and
The consent of the manufacturer shall be required for the succession to a
dealership by a family member of the deceased, incapacitated, or retired
designated principal if the succession involves a relocation of the business or
an alteration of the terms and conditions of the dealer agreement.
Effective: January 1, 2015
History: Created 2014 Ky. Acts ch. 27, sec. 7, effective January 1, 2015.
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