alteration by manufacturer or distributor.
1.Notwithstandingsection322C.3,subsection5,amanufacturerordistributormay,either
directly or through any authorized officer, agent, or employee, terminate, cancel, or fail to
renew a manufacturer-dealer agreement with or without good cause. If the manufacturer or
distributor terminates, cancels, or fails to renew a manufacturer-dealer agreement without
good cause, the manufacturer or distributor shall comply with the repurchase requirements
set forth in section 322C.16.
2.A manufacturer or distributor shall have the burden of proof to demonstrate good
cause for terminating, canceling, or failing to renew a manufacturer-dealer agreement. For
purposes of determining whether good cause exists for the manufacturer’s or distributor’s
termination, canc
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alteration by manufacturer or distributor.
1. Notwithstandingsection322C.3,subsection5,amanufacturerordistributormay,either
directly or through any authorized officer, agent, or employee, terminate, cancel, or fail to
renew a manufacturer-dealer agreement with or without good cause. If the manufacturer or
distributor terminates, cancels, or fails to renew a manufacturer-dealer agreement without
good cause, the manufacturer or distributor shall comply with the repurchase requirements
set forth in section 322C.16.
2. A manufacturer or distributor shall have the burden of proof to demonstrate good
cause for terminating, canceling, or failing to renew a manufacturer-dealer agreement. For
purposes of determining whether good cause exists for the manufacturer’s or distributor’s
termination, cancellation, or failure to renew a manufacturer-dealer agreement, any of the
following factors may be considered:
a. The extent of the dealer’s presence in the community.
§322C.14, RECREATIONAL VEHICLE DEALERS, MANUFACTURERS, & DISTRIBUTORS 8
b. The nature and extent of the dealer’s investment in the dealer’s business.
c. The adequacy of the dealer’s service facilities, equipment, parts, supplies, and
personnel.
d. The effect that the proposed termination, cancellation, or nonrenewal of the
manufacturer-dealer agreement would have on the community.
e. The extent and quality of the dealer’s service under the warranties of the towable
recreational vehicles sold by the dealer.
f. The dealer’s failure to follow procedures or standards related to the overall operation
of the dealership that were agreed to by the dealer.
g. The dealer’s performance under the terms of the manufacturer-dealer agreement.
3. a. Except as otherwise provided in this subsection or subsection 4, a manufacturer or
distributorshallprovidetoadealerwrittennoticeoftermination, cancellation, ornonrenewal
of a manufacturer-dealer agreement for good cause at least ninety days prior to terminating,
canceling, or failing to renew the manufacturer-dealer agreement.
b. (1) The notice shall state all of the reasons for the termination, cancellation, or
nonrenewal and shall further state that if, within thirty days following receipt of the notice,
the dealer provides to the manufacturer or distributor a written notice of intent to cure all
claimed deficiencies, the dealer shall then have ninety days following receipt of the notice
to cure the deficiencies.
(2) If the deficiencies are cured within ninety days, the manufacturer’s or distributor’s
noticeisvoided. Ifthedealerfailstoprovidethenoticeofintenttocurethedeficiencieswithin
thirty days, or fails to cure the deficiencies within ninety days, the termination, cancellation,
or nonrenewal takes effect as provided in the original notice. If the dealer has possession of
new and untitled inventory, the inventory may be sold pursuant to section 322C.16.
c. Thenoticeperiodfortermination,cancellation,ornonrenewalofamanufacturer-dealer
agreement for good cause may be reduced to thirty days if the grounds for termination,
cancellation, or nonrenewal are due to any of the following factors:
(1) The dealer or one of the dealer’s owners has been convicted of, or has entered a plea
of guilty or nolo contendere to, a felony.
(2) The dealer has abandoned or closed the dealer’s business operations for ten
consecutive business days. This subparagraph does not apply if the closing is due to a
normal seasonal closing and the dealer notifies the manufacturer or distributor of the
planned closing, or is due to an act of God, a strike, a labor difficulty, or any other cause
over which the dealer has no control.
(3) The dealer has made a significant misrepresentation that materially affects the
business relationship of the manufacturer or distributor and the dealer.
(4) The dealer’s license has been suspended, revoked, denied, or has not been renewed
by the department.
(5) Thedealerhascommittedamaterialviolationofthischapterwhichisnotcuredwithin
thirty days after receipt of written notice of the violation.
4. Subsection 3 does not apply if the manufacturer or distributor terminates, cancels, or
fails to renew the manufacturer-dealer agreement because the dealer is insolvent, or has filed
for bankruptcy, receivership, or assignment for the benefit of creditors.