407.895. Manufacturer, wholesaler or distributor not to terminate contract except for good cause--good cause established, how.
Manufacturer, wholesaler or distributor not to terminate contractexcept for good cause--good cause established, how.
407.895. Any manufacturer, wholesaler or distributor ofoutdoor power equipment used for lawn, garden, golf course,landscaping or grounds maintenance, and repair parts therefor,who enters into a written or parol contract with any person,firm, or corporation engaged in the business of selling andrepairing outdoor power equipment used for lawn, garden, golfcourse, landscaping or grounds maintenance and repair partstherefor, whereby such retailer agrees to maintain a stock ofparts or complete or whole machines or attachments, shall notterminate, cancel, or fail to renew any such contract withoutgood cause. "Good cause" means failure by the retailer tosubstantially comply with essential and reasonable requirementsimposed upon the retailer by the contract if such requirementsare not different from those requirements imposed on othersimilarly situated retailers either by their terms or in themanner of their enforcement. In addition, good cause shall existwhenever:
(1) The retailer has transferred an interest in the retailerbusiness 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 mortgage orother 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 been convictedof a felony affecting the relationship between the retailer andthe 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.
(L. 1989 S.B. 41 § 4)