Section 407.1364

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 2004   

  407.1364.  Notice of termination or cancellation, contents. — 1.  Except as provided in this section, a boat, marine, vessel, or personal watercraft manufacturer shall provide a boat, marine, vessel, or personal watercraft dealer at least ninety days' prior written notice of termination, cancellation, or nonrenewal of the dealership agreement.  The notice shall state all the reasons for termination, cancellation, or nonrenewal of the dealership agreement and shall provide the said dealer the aforesaid ninety days in which to cure any claimed deficiency.  If the deficiency is rectified within the aforesaid ninety days, the manufacturer's notice shall be void.  However, if the dealer fails to provide the notice of intent to cure deficiencies in the prescribed time period, the termination shall take effect sixty days after the dealer's receipt of the manufacturer's notice unless the dealer has new and untitled inventory on hand, in which case, if requested by the dealer, it will take effect upon the sale of the remaining inventory but in no event later than ninety days from the manufacturer's notice of termination.

  2.  The notice and right to cure provisions in this section shall not apply if the reason for termination, cancellation, or nonrenewal is for good cause as defined in section 407.1360.

  3.  A dealer may terminate its dealer agreement at any time by giving written notice of said intentions to the manufacturer at least ninety days prior to the effective date specified for termination.

  4.  The ninety-day notice may be reduced to sixty days' notice if the grounds for termination are due to:

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

  (2)  The business operations of the dealer have been abandoned or closed for thirty consecutive days unless the closing is due to an act of God or other cause over which the dealer has no control;

  (3)  A material misrepresentation by the dealer; or

  (4)  The suspension, revocation, or refusal to renew the dealer's license.

  5.  The provisions of this section regarding notice shall not apply if the reason for termination is insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy.

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(L. 2004 H.B. 1288)