2013 Maryland Code
COMMERCIAL LAW
§ 19-103 - Dealer contracts -- Cancellation, nonrenewal, substantial change

§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.