Alabama § 8-21B-6 Consent to Transfers

Alabama Statutes

§ 8-21B-6 — Consent to Transfers

Alabama § 8-21B-6

Title 8Commercial Law and Consumer Protection

Ch. 21BAlabama Heavy Equipment Dealer Act

This text of Alabama § 8-21B-6 (Consent to Transfers) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 8-21B-6 (2026).

Text

(a)No supplier shall unreasonably withhold or delay consent to any transfer of the dealer’s business or dealer agreement or transfer of the stock or other interest in the dealership whenever the transferee meets the material and reasonable qualifications and standards of the supplier required in appointing its dealers. Should a supplier determine that a proposed transferee does not meet its qualifications and standards, it shall give the dealer written notice thereof, stating the specific reasons for withholding consent. No prospective transferee shall be disqualified to be a dealer because it is a publicly held corporation. A supplier shall have 45 days to consider a dealer’s request to make a transfer under this subsection.

(b)In any dispute as to whether a supplier has denied consent

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(a) No supplier shall unreasonably withhold or delay consent to any transfer of the dealer’s business or dealer agreement or transfer of the stock or other interest in the dealership whenever the transferee meets the material and reasonable qualifications and standards of the supplier required in appointing its dealers. Should a supplier determine that a proposed transferee does not meet its qualifications and standards, it shall give the dealer written notice thereof, stating the specific reasons for withholding consent. No prospective transferee shall be disqualified to be a dealer because it is a publicly held corporation. A supplier shall have 45 days to consider a dealer’s request to make a transfer under this subsection.
(b) In any dispute as to whether a supplier has denied consent in violation of this section, the supplier shall have the burden of proving a substantial and reasonable justification for the denial of consent.