16-1306.   Changes not made without good cause; when good cause exists.No supplier, directly or through any officer, agent or employee,may terminate, cancel or fail to renewwithout good cause. Good cause means failure by aretailer to substantially comply with essential and reasonable requirementsimposed upon the retailer by the contract if such requirements are notdifferent from those requirements imposed on similarly situated dealers eitherby their terms or in the manner of their enforcement. In addition, good causeshall exist whenever:

      (a)   The retailer has transferred a controlling interest in the retailerbusiness without the supplier's consent;

      (b)   the retailer has filed a voluntary petition in bankruptcy or has had aninvoluntary petition in bankruptcy filed against it which has not beendischarged within 30 days after the date of filing, or there has been acloseout or sale of a substantial part of the retailer's assets related to theretailer's business or there has been a commencement or dissolution orliquidation of the retailer's business;

      (c)   there has been a change, without the prior written approval of thesupplier, in the location of retailer's principal place of business if suchapproval is required under the retailer's agreement with the supplier;

      (d)   the retailer has defaulted under any reasonable and essential term of achattel mortgage or other security agreement between the retailer and supplier,or there has been a revocation or discontinuance of any guarantee of theretailer's present or future obligations to the supplier;

      (e)   the retailer has failed to operate in the normal course of business forseven consecutive days or has otherwise abandoned such retailer's business,except for reasonable and customary closures of business;

      (f)   the retailer has pleaded guilty to or has been convicted of a felonyaffecting the relationship between the retailer and supplier;

      (g)   the retailer has engaged in conduct which is injurious or detrimental tothe retailer's customers or the public welfare; or

      (h)   following receipt of written notices of the supplier's requirements andof written notices of the supplier's determination of the retailer's initialand persisting failures to meet the supplier's requirements, the retailer hasconsistently failed to meet the supplier's requirements for reasonable marketpenetration based on the supplier's experience in other identified andcomparable market areas.

      History:   L. 1991, ch. 67, § 6; April 25.