16-1406.   Changes not made without good cause; when good cause exists.No supplier, directly or through any officer, agent oremployee, may terminate, cancel or fail to renew without good cause. Goodcause means failure by a retailer to substantially comply with essential andreasonable requirements imposed upon the retailer by the contract if suchrequirements are not different from those requirements imposed on similarlysituated dealers either by their terms or in the manner of theirenforcement. In addition, good cause shall exist whenever:

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

      (b)   the retailer has filed a voluntary petition in bankruptcy or hashad an involuntary petition in bankruptcy filed against it which has notbeen discharged 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 tothe retailer'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 termof a chattel mortgage or other security agreement between the retailer andsupplier, or there has been a revocation or discontinuance of any guaranteeof the retailer's present or future obligations to the supplier;

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

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

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

      (h)   following receipt of written notices of the supplier'srequirements and of written notices of the supplier's determination of theretailer's initial and persisting failures to meet the supplier'srequirements, the retailer has consistently failed to meet the supplier'srequirements for reasonable market penetration based on the supplier'sexperience in other identified and comparable market areas.

      History:   L. 1992, ch. 40, § 6; April 16.