Before the termination, cancellation, or nonrenewal
of a franchise, the manufacturer shall give written notification
to both the department and the new motor vehicle dealer. For the
purposes of this chapter, the discontinuance of the sale and
distribution of a new motor vehicle line, or the constructive
discontinuance by material reduction in selection offered, such
that continuing to retail the line is no longer economically
viable for a dealer is, at the option of the dealer, considered a
termination, cancellation, or nonrenewal of a franchise. The
notice shall be by certified mail or personally delivered to the
new motor vehicle dealer and shall state the intention to
terminate, cancel, or not renew the franchise, the reasons for
the termination, cancellation, or nonrenewal, and the effective
date of the termination, cancellation, or nonrenewal. The notice
shall be given:
(1) Not less than ninety days before the effective date of
the termination, cancellation, or nonrenewal;
(2) Not less than fifteen days before the effective date of
the termination, cancellation, or nonrenewal with respect to any
of the following that constitute good cause for termination,
cancellation, or nonrenewal:
(a) Insolvency of the new motor vehicle dealer or the filing
of any petition by or against the new motor vehicle dealer under
bankruptcy or receivership law;
(b) Failure of the new motor vehicle dealer to conduct sales
and service operations during 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 principal
operator of the dealership, of a felony punishable by
imprisonment; or
(d) Suspension or revocation of a license that the new motor
vehicle dealer is required to have to operate the new motor
vehicle dealership where the suspension or revocation is for a
period in excess of thirty days;
(3) Not less than one hundred eighty days before the
effective date of termination, cancellation, or nonrenewal, where
the manufacturer intends to discontinue sale and distribution of
the new motor vehicle line.
[2010 c 178 § 2; 1989 c 415 § 7.]