2006 New York Code - Termination And Non-renewal Of Dealer Agreements.

 
    §  696-c.  Termination and non-renewal of dealer agreements. 1. Except
  where a grounds for termination or non-renewal of a dealer agreement are
  contained in paragraph (a), (b), (c), (d), (e) or (f) of subdivision two
  of this section, a supplier shall give a  dealer  ninety  days'  written
  notice  of  the  supplier's  intent  to terminate, cancel or not renew a
  dealer agreement. The contractual term of the dealer agreement shall not
  expire, without  the  written  consent  of  the  dealer,  prior  to  the
  expiration of at least ninety days following such notice.
    2.  As  used  in this article, a termination by a supplier of a dealer
  agreement shall be with cause when the dealer has:
    (a) transferred a controlling ownership  interest  in  the  dealership
  without the supplier's consent;
    (b)  made  a  material  misrepresentation  in  applying for the dealer
  agreement;
    (c) filed a voluntary petition in bankruptcy or has had an involuntary
  petition in bankruptcy filed against  the  dealer  which  has  not  been
  discharged  within  sixty days after the filing; is in default under the
  provisions of a security agreement in effect with the  supplier;  or  is
  insolvent or in receivership;
    (d)  been  convicted of a crime, punishable for a term of imprisonment
  for one year or more;
    (e) failed to operate  in  the  normal  course  of  business  for  ten
  consecutive business days or has terminated said business;
    (f)  relocated  the  dealer's  place  of  business  without supplier's
  consent; or
    (g) consistently engaged in business practices which  are  detrimental
  to  the  consumer  or  supplier  by way of excessive pricing, misleading
  advertising, failure to provide service and replacement parts or perform
  warranty obligations;
    (h) inadequately represented supplier over a measured  period  causing
  lack  of  performance  in sales, service or warranty areas and failed to
  achieve market penetration at levels consistent  with  similary  located
  dealerships based on available recorded information compiled by industry
  associations  regarded as the authorities in this area both in local and
  national standards;
    (i)  consistently   failed   to   meet   building   and   housekeeping
  requirements,  or has failed to provide adequate sales, service or parts
  personnel commensurate with the dealer agreement;
    (j) consistently failed to comply with the applicable  licensing  laws
  pertaining  to  the  products  and services being represented for and on
  supplier's behalf;
    (k) consistently failed to comply with the  terms  of  the  dealership
  agreement.
    3.  No supplier shall base its decision to terminate, cancel or not to
  renew a dealer agreement on any of the paragraphs of subdivision two  of
  this  section  except  paragraph  (a), (b), (c), (d), (e) or (f) thereof
  unless such supplier can demonstrate, through written documentation, the
  alleged misconduct  and/or  lack  of  performance  by  the  dealer,  and
  furthermore,  such  supplier  shall  also  show  that the reason for the
  decision to terminate, cancel or not to renew the dealer  agreement  was
  in no way caused by such supplier.