Section 407.1323

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 01 Aug 2002, see footnote   

  407.1323.  Recreational vehicle manufacturers and dealers, written agreement required, when — sales of RVs, conditions. — 1.  All manufacturers and dealers doing business in this state must have a written agreement signed by both parties.  This law shall supercede any conflicting statutes in states where enacted.

  2.  The manufacturer shall designate in writing subject to annual review the area of sales responsibility exclusively assigned to an RV dealer and shall not establish another RV dealer for the same line-make in the same area during the duration of the agreement unless the manufacturer can show good cause for the addition of the new RV dealer including reasonable evidence that the market will support the establishment of a new dealership.

  3.  Sales of RVs by manufacturers or distributors shall be in accordance with published prices, charges and terms of sale in effect at any given time.  The manufacturer will sell products on the same basis, with respect to all rebates, discounts and programs, to all competing dealers similarly situated.

  4.  No manufacturer, directly or through any officer, agent or employee, may terminate an RV dealer agreement without good cause.  The burden of showing good cause is on the manufacturer.  Prior to the expiration of a dealer agreement, both parties shall enter into negotiations for renewal of the dealer agreement in good faith, and neither will arbitrarily require a substantial change in competitive circumstances.  When taking on a competing manufacturer's lines, a dealer must notify existing manufacturers in writing, at least thirty days prior to entering into such an agreement, to sell the same type of recreational vehicle.

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(L. 2001 H.B. 575)

Effective 8-01-02