16-1203.   Change of farm equipment dealership agreements; restrictions.No farm equipment manufacturer, directly or through anyofficer, agent or employee may terminate, cancel, fail to renew orsubstantially change the competitive circumstances of a dealershipagreement without good cause. For the purposes of this subsection, goodcause means and includes the failure by a farm equipment dealer tosubstantially comply with essential and reasonablerequirements imposed upon the dealer by the dealership agreement, providedsuch requirements are not different from those requirements imposed onother similarly situated dealers either by their terms or in the manner oftheir enforcement. In addition, good cause shall exist whenever:

      (a)   The farm equipment dealer has transferred an interest in the farmequipment dealership without the manufacturer's consent, or there has been awithdrawal from the dealership of an individual proprietor, partner, majorshareholder, or the manager of the dealership, or there has been asubstantial reduction in interest of a partner or major stockholder withoutthe consent of the manufacturer;

      (b)   the farm equipment dealer has filed a voluntary petition inbankruptcy or has had an involuntary petition in bankruptcy filed againstit which has not been discharged within 30 days after the filing, or therehas been a closeout or sale of a substantial part of the dealer's assetsrelated to the farm equipment business, or there has been a commencement ofdissolution or liquidation of the dealer;

      (c)   there has been a change, without the prior written approval of themanufacturer, in the location of the dealer's principal place of businessunder the dealership agreement;

      (d)   the farm equipment dealer has defaulted under any chattel mortgageor other security agreement between the dealer and the farm equipmentmanufacturer, or there has been a revocation or discontinuance of anyguarantee of the dealer's present or future obligations to the farmequipment manufacturer;

      (e)   the farm equipment dealer has failed to operate in the normal courseof business for seven consecutive days or has otherwise abandoned its business;

      (f)   the farm equipment dealer has pleaded guilty to or has beenconvicted of a felony affecting the relationship between the dealer and manufacturer;

      (g)   the dealer has engaged in conduct which is injurious or detrimentalto the dealer's customers or to the public welfare;

      (h)   the farm equipment dealer has consistently failed to meet themanufacturer's requirements for reasonable market penetration based on themanufacturer's experience in other comparable marketing areas.

      History:   L. 1986, ch. 2, § 3; July 1.