407.1326. Termination notice, requirements, contents.

Termination notice, requirements, contents.

407.1326. 1. Except as provided in this section, a manufacturer shallprovide an RV dealer at least one hundred twenty days prior written notice oftermination. The notice shall state all the reasons for termination and shallfurther state that if, within thirty days following receipt of themanufacturer's notice, the RV dealer provides to the manufacturer a writtennotice of intent to cure all claimed deficiencies, the RV dealer will thenhave one hundred twenty days from the date of the manufacturer's notice torectify such deficiencies. If the deficiency is rectified within one hundredtwenty days, the manufacturer's notice shall be void. However, if the RVdealer fails to provide the notice of intent to cure deficiencies in theproscribed time period, the termination shall take effect thirty days afterthe RV dealer's receipt of the manufacturer's notice unless the dealer has newand untitled inventory on hand in which case, if requested by the dealer, itwill take effect upon the sale of the remaining inventory but in no eventlater than one hundred twenty days from the manufacturer's notice oftermination.

2. The one hundred twenty day-notice may be reduced to thirty days'notice if the grounds for termination are* due to:

(1) Conviction of or pleas of nolo contendere to a felony of an RVdealer, or one of its owners;

(2) The business operations of the RV dealer have been abandoned orclosed for ten consecutive business days unless the closing is due to an actof God, strike or labor difficulty, or other cause over which the dealer hasno control;

(3) A material misrepresentation by the RV dealer; or

(4) The suspension, revocation, or refusal to renew the RV dealer'slicense.

3. The notice provisions of this section shall not apply if the reasonfor termination is insolvency, the occurrence of an assignment for the benefitof creditors or bankruptcy.

4. A dealer may terminate its dealer agreement at any time by givingwritten notice of such intention to the** manufacturer at least thirty daysprior to the effective date specified for termination.

(L. 2001 H.B. 575)

Effective 8-01-02

*Word "is" appears in original rolls.

**Word "the" does not appear in original rolls.