407.753. Manufacturer, wholesaler or distributor not to terminate contract except for good cause--good cause, how established.
Manufacturer, wholesaler or distributor not to terminate contractexcept for good cause--good cause, how established.
407.753. 1. Any manufacturer, wholesaler or distributor ofindustrial, maintenance and construction power equipment used forindustrial, maintenance and construction applications and repairparts therefor, who enters into a written or parol contract withany person, firm, or corporation engaged in the business ofselling and repairing industrial, maintenance and constructionpower equipment used for industrial, maintenance and constructionapplications and repair parts therefor, whereby such retaileragrees to maintain a stock of parts or complete or whole machinesor attachments, shall not terminate, cancel, or fail to renew anysuch contract without good cause. "Good cause" means failure bythe retailer to substantially comply with essential andreasonable requirements imposed upon the retailer by the contractif such requirements are not different from those requirementsimposed on other similarly situated retailers either by theirterms or in the manner of their enforcement. In addition, goodcause shall exist whenever:
(1) The retailer has transferred an interest in theretailer business without the manufacturer's, wholesaler's ordistributor's written consent, or there has been a withdrawalfrom the retailer's business of an individual proprietor,partner, major shareholder, or the manager of the retailer'sbusiness, or there has been a substantial reduction in interestof a partner or major stockholder without the written consent ofthe manufacturer, wholesaler, or distributor;
(2) The retailer has filed a voluntary petition inbankruptcy or has had an involuntary petition in bankruptcy filedagainst it which has not been discharged within thirty days afterthe filing, or there has been a closeout or sale of a substantialpart of the retailer's assets related to the retailer's businessor there has been a commencement or dissolution or liquidation ofthe retailer's business;
(3) There has been a change, without the prior writtenapproval of the manufacturer, wholesaler, or distributor, in thelocation of the retailer's principal place of business under theretailer's agreement with the manufacturer, wholesaler, ordistributor;
(4) The retailer has defaulted under any chattel mortgageor other security agreement between the retailer and themanufacturer, wholesaler, or distributor, or there has been arevocation or discontinuance of any guarantee of the retailer'spresent or future obligations to the manufacturer, wholesaler, ordistributor;
(5) The retailer has failed to operate in the normal courseof business for seven consecutive days or has otherwise abandonedhis business, except for reasonable and customary closures ofbusiness;
(6) The retailer has pleaded guilty to or has beenconvicted of a felony affecting the relationship between theretailer and the manufacturer, wholesaler, or distributor;
(7) The retailer has engaged in conduct which is injuriousor detrimental to the retailer's customers or the public welfare;
(8) The retailer has consistently failed to meet themanufacturer's, wholesaler's or distributor's requirements forreasonable market penetration based on the manufacturer's,wholesaler's, or distributor's experience in other comparablemarketing areas.
2. Except as otherwise provided in this section, a suppliershall provide a retailer at least ninety-days prior writtennotice of termination, cancellation, or nonrenewal of thecontract. The notice shall state all reasons constituting goodcause for termination, cancellation or nonrenewal and shallprovide that the dealer has sixty days in which to cure anyclaimed deficiency. If the deficiency is rectified within sixtydays the notice shall be void. The notice and right-to-cureprovisions under this section shall not apply if the reason fortermination, cancellation or nonrenewal is for any reason setforth in subdivisions (1) to (8) of this section.
(L. 1991 S.B. 241 § 4)