§ 322F.2 — Notice of termination

Iowa § 322F.2

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322F: EQUIPMENT DEALERSHIP AGREEMENTS

Text

1. a. A supplier shall terminate a dealership agreement for equipment other than outdoor
power equipment by cancellation, nonrenewal, or a substantial change in competitive
circumstances only upon good cause and upon at least ninety days’ prior written notice
delivered to the dealer by certified mail or restricted certified mail. A supplier shall terminate
a dealership agreement for outdoor power equipment by cancellation or nonrenewal only
upon good cause and upon at least ninety days’ prior written notice delivered to the dealer
by restricted certified mail or hand delivered by a representative of the supplier to the dealer
or a designated representative of the dealer.
b. A written termination notice must specify each deficiency constituting good cause
for the action. The notice must also state that the dealer has sixty days to cure a specified
deficiency. If the deficiency is cured within sixty days from the date that the notice is
delivered, the notice is void. However, if the deficiency is based on a dealer’s inadequate
representation of a manufacturer’s product relating to sales, as provided in section 322F.1,
the notice must state that the dealer has eighteen months to cure the deficiency. If the
deficiency based on inadequate representation of a manufacturer’s product relating to sales
is cured within eighteen months from the date that notice is delivered, the notice is void.
2. The supplier shall have the right to terminate immediately without notice in the event
theactionisforgoodcauseasdefinedinsection322F.1, subsection7, paragraphs“b”through
“m”.