16-1306. Changes not made without good cause; when good cause exists.
16-1306
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 renew
without good cause. Good cause means failure by a
retailer to substantially comply with essential and reasonable requirements
imposed upon the retailer by the contract if such requirements are not
different from those requirements imposed on similarly situated dealers either
by their terms or in the manner of their enforcement. In addition, good cause
shall exist whenever:
(a) The retailer has transferred a controlling interest in the retailer
business without the supplier's consent;
(b) the retailer has filed a voluntary petition in bankruptcy or has had an
involuntary petition in bankruptcy filed against it which has not been
discharged within 30 days after the date of filing, or there has been a
closeout or sale of a substantial part of the retailer's assets related to the
retailer's business or there has been a commencement or dissolution or
liquidation of the retailer's business;
(c) there has been a change, without the prior written approval of the
supplier, in the location of retailer's principal place of business if such
approval is required under the retailer's agreement with the supplier;
(d) the retailer has defaulted under any reasonable and essential term of a
chattel mortgage or other security agreement between the retailer and supplier,
or there has been a revocation or discontinuance of any guarantee of the
retailer's present or future obligations to the supplier;
(e) the retailer has failed to operate in the normal course of business for
seven 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 felony
affecting the relationship between the retailer and supplier;
(g) the retailer has engaged in conduct which is injurious or detrimental to
the retailer's customers or the public welfare; or
(h) following receipt of written notices of the supplier's requirements and
of written notices of the supplier's determination of the retailer's initial
and persisting failures to meet the supplier's requirements, the retailer has
consistently failed to meet the supplier's requirements for reasonable market
penetration based on the supplier's experience in other identified and
comparable market areas.
History: L. 1991, ch. 67, § 6; April 25.