§ 322A.12 — Sale or transfer of ownership

Iowa § 322A.12

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322A: MOTOR VEHICLE FRANCHISERS

Text

1. Notwithstanding the terms, provisions, or conditions of an agreement or franchise,
subject to the provisions of section 322A.11, subsection 2, in the event of the sale or
transfer of ownership of a franchisee’s dealership by sale or transfer of the business or by
stock transfer or in the event of a change in the executive management of a franchisee’s
dealership, the franchiser shall give effect to the change in the franchise unless the transfer
7 MOTOR VEHICLE FRANCHISERS, §322A.15
of the franchisee’s license under chapter 322 is denied or the new owner is unable to obtain
a license under that chapter.
2. Notwithstanding the terms, provisions, or conditions of an agreement or franchise, the
sale or transfer, or the proposed sale or transfer, of a franchisee’s dealership, or the change
or proposed change in the executive management of a franchisee’s dealership shall not make
applicable any right of first refusal of the franchiser.

Legislative History

[C71, 73, 75, 77, 79, 81, §322A.12]