§ 322C.17 — Transfer of ownership — family succession — objection

Iowa § 322C.17

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322C: TOWABLE RECREATIONAL VEHICLE DEALERS, MANUFACTURERS, AND DISTRIBUTORS

Text

1. a. If a towable recreational vehicle dealer makes or intends to make a change in
ownership of a dealership by sale of the business assets, a stock transfer, or in another
manner, the dealer shall provide to a manufacturer or distributor that is a party to a
manufacturer-dealer agreement with the dealer written notice of the proposed change at
least fifteen business days before the change becomes effective. The notice shall include
all supporting documentation that may be reasonably required by the manufacturer or
distributor to determine whether to make an objection to the change.
b. In the absence of a breach by the dealer of the manufacturer-dealer agreement or a
violation of this chapter, the manufacturer or distributor shall not object to the proposed
change in ownership unless the objection is to the prospective transferee for any of the
following reasons:
(1) The transferee has previously been a party to a manufacturer-dealer agreement with
the manufacturer or distributor and the agreement was terminated, canceled, or not renewed
by the manufacturer or distributor for good cause.
(2) The transferee has been convicted of a felony or any crime of fraud, deceit, or moral
turpitude.
(3) The transferee lacks any license required by law.
(4) The transferee does not have an active line of credit sufficient to purchase the
manufacturer’s or distributor’s products.
(5) The transferee is insolvent or has been within the previous ten years, or has filed for
bankruptcy, receivership, or assignment for the benefit of creditors within the previous ten
years.
c. If a manufacturer or distributor objects to a proposed change in ownership of a
dealership, the manufacturer or distributor shall provide written notice of the reasons
for the objection to the dealer within fifteen business days after receipt of the dealer’s
notification and supporting documentation about the proposed change. The manufacturer
or distributor shall have the burden of proof to demonstrate that the objection complies with
the requirements of this subsection. If the manufacturer or distributor does not provide the
dealer with timely notice of the objection, the dealer’s proposed change in ownership of the
dealership shall be deemed approved.
2. a. A manufacturer or distributor shall provide to a dealer the opportunity to designate,
in writing, a family member as a successor to ownership of a dealership in the event of the
death, incapacity, or retirement of the dealer. If a dealer desires to designate a family member
as a successor to ownership of a dealership, the dealer shall provide to the manufacturer
or distributor that is a party to the manufacturer-dealer agreement with the dealer written
notice of the proposed designation, or modification of a previous designation, at least fifteen
business days before the designation or proposed modification of a designation becomes
effective. The notice shall include all supporting documentation as may be reasonably
required by the manufacturer or distributor to determine whether to make an objection to
the succession plan.
b. In the absence of a breach by the dealer of the manufacturer-dealer agreement or a
violation of this chapter, the manufacturer or distributor shall not object to the designation
or proposed modification of a designation unless the objection is to the designated successor
for any of the following reasons:
(1) The designated successor has previously been a party to a manufacturer-dealer
agreement with the manufacturer or distributor and the agreement was terminated,
canceled, or not renewed by the manufacturer or distributor for good cause.
11 RECREATIONAL VEHICLE DEALERS, MANUFACTURERS, & DISTRIBUTORS, §322C.18
(2) The designated successor has been convicted of a felony or any crime of fraud, deceit,
or moral turpitude.
(3) The designated successor lacks any license required by law at the time of succession.
(4) The designated successor does not have an active line of credit sufficient to purchase
the manufacturer’s or distributor’s products at the time of succession.
(5) The designated successor is insolvent or has been within the previous ten years, or
has filed for bankruptcy, receivership, or assignment for the benefit of creditors within the
previous ten years.
c. If a manufacturer or distributor objects to a succession plan, the manufacturer or
distributor shall provide written notice of the reasons for the objection to the dealer within
fifteen business days after receipt of the dealer’s notification and supporting documentation
abouttheproposeddesignationorproposedmodificationofadesignation. Themanufacturer
or distributor shall have the burden of proof to demonstrate that the objection complies with
the requirements of this subsection. If the manufacturer or distributor does not provide the
dealer with timely notice of the objection, the dealer’s proposed succession plan shall be
deemed approved. A manufacturer or distributor shall allow the succession of ownership
of a dealership to a designated family member when a dealer is deceased, incapacitated, or
has retired, unless the manufacturer or distributor has provided to the dealer written notice
of the manufacturer’s or distributor’s objections to the succession within fifteen days after
receipt of notice of the succession. However, a family member of a dealer shall not succeed
to ownership of a dealership if the succession involves, without the manufacturer’s or
distributor’s consent, a relocation of the dealership or alteration of the terms and conditions
of the manufacturer-dealer agreement.