16-1204. Notice of termination, cancellation or nonrenewal of dealership agreement; cure of deficiency; approval of dealership transfer.
16-1204
16-1204. Notice of termination, cancellation or
nonrenewal of
dealership agreement; cure of deficiency; approval of dealership
transfer.
(a) Except as otherwise provided in this section, a farm equipment
manufacturer shall provide a farm equipment dealer at least ninety-days'
prior written notice of termination, cancellation or nonrenewal of the
dealership agreement. The notice shall state all reasons constituting good
cause for termination, cancellation or nonrenewal and shall provide that
the dealer has 60 days in which to cure any claimed deficiency. If the
deficiency is rectified within 60 days the notice shall be void. The notice
and right to cure provisions under this section shall not apply if the
reason for termination, cancellation or nonrenewal is for any reason set
forth in subsections (a) through (h) of K.S.A. 16-1203 and amendments
thereto.
(b) In the event that a farm equipment manufacturer has contractual
authority to approve or deny a request by a farm equipment dealer to sell or
transfer any portion the dealer's business ownership to another party or to
enter into an agreement to operate the dealership with another party, the
manufacturer shall approve or deny such a request within 90 days after
receiving the request.
If the manufacturer has
neither approved nor denied the request within 90 days, the request shall be
deemed approved.
The farm equipment dealer's request shall include the
reasonable financial information, personal background, character references and
work histories as required by the manufacturer to render such a determination.
In the event the manufacturer denies the request, the manufacturer shall
provide the farm equipment dealer with a written notice of its determination
with the stated reasons for the denial.
History: L. 1986, ch. 2, § 4;
L. 1998, ch. 79, § 1; July 1.