2005 Vermont Code - § 4090. — Notification of termination; cancellation and nonrenewal

§ 4090. Notification of termination; cancellation and nonrenewal

(a) Notwithstanding the terms, provisions or conditions of any franchise prior to the termination, cancellation or nonrenewal of any franchise, the manufacturer shall furnish notification of such termination, cancellation or nonrenewal to the new motor vehicle dealer as follows:

(1) in the manner described in subsection (b) of this section; and

(2) not less than 90 days prior to the effective date of such termination, cancellation or nonrenewal; or

(3) not less than 15 days prior to the effective date of such termination, cancellation or nonrenewal with respect to any of the following:

(A) insolvency of the new motor vehicle dealer, or filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law;

(B) failure of the new motor vehicle dealer to conduct its customary sales and service operations during its customary business hours for seven consecutive business days, except for acts of God or circumstances beyond the direct control of the new motor vehicle dealer;

(C) conviction of the new motor vehicle dealer, or any owner or operator thereof, of any crime which is punishable by imprisonment;

(D) revocation of any license which the new motor vehicle dealer is required to have to operate a dealership.

(4) not less than 180 days prior to the effective date of such termination or cancellation where the manufacturer or distributor is discontinuing the sale of the product line.

(b) Notification under this section shall be in writing; shall be by certified mail or personally delivered to the new motor vehicle dealer; and shall contain:

(1) a statement of intention to terminate, cancel or not to renew the franchise; and

(2) a statement of the reasons for the termination, cancellation or nonrenewal; and

(3) the date on which the termination, cancellation or nonrenewal takes effect. (Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982.)