North Dakota § 51-07-01.1 Termination of retail contract to be done in good faith - Definition of good cause

North Dakota Statutes

§ 51-07-01.1 — Termination of retail contract to be done in good faith - Definition of good cause

North Dakota § 51-07-01.1

Title 51Sales and Exchanges

Ch. 51-07Miscellaneous Provisions

This text of North Dakota § 51-07-01.1 (Termination of retail contract to be done in good faith - Definition of good cause) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 51-07-01.1 (2026).

Text

cause.

1.Any manufacturer, wholesaler, or distributor of merchandise and tools covered under section 51-07-01, excluding automobile dealers, truck dealers, or parts dealers of the automobiles or trucks, that enters a contract with any person engaged in the business of retailing the covered merchandise by which the retailer agrees to maintain a stock of the covered merchandise may not terminate, cancel, or fail to renew the contract with the retailer without good cause.

2.For the purpose of this section, good cause for terminating, canceling, or failing to renew a contract is limited to failure by the retailer to substantially comply with those essential and reasonable requirements imposed by the contract between the parties if the requirements are not different from those requirements im

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cause.
1. Any manufacturer, wholesaler, or distributor of merchandise and tools covered under
section 51-07-01, excluding automobile dealers, truck dealers, or parts dealers of the
automobiles or trucks, that enters a contract with any person engaged in the business
of retailing the covered merchandise by which the retailer agrees to maintain a stock of
the covered merchandise may not terminate, cancel, or fail to renew the contract with
the retailer without good cause.
2. For the purpose of this section, good cause for terminating, canceling, or failing to
renew a contract is limited to failure by the retailer to substantially comply with those
essential and reasonable requirements imposed by the contract between the parties if
the requirements are not different from those requirements imposed on other similarly
situated retailers. The determination by the manufacturer, wholesaler, or distributor of
good cause for the termination, cancellation, or failure to renew must be made in good
faith.
3. In any action against a manufacturer, wholesaler, or distributor for violation of this
section, the manufacturer, wholesaler, or distributor shall establish that the termination,
cancellation, or failure to renew was made in good faith for good cause. If a notice of
termination is issued and the dealer challenges the notice by filing an action, there is
an automatic stay during the pendency of the action. If the manufacturer, wholesaler,
or distributor fails to establish good cause for its action, the manufacturer, wholesaler,
or distributor is liable for all special and general damages sustained by the plaintiff,
including the costs of the litigation and reasonable attorney's fees for prosecuting the
action and the plaintiff, if appropriate, is entitled to injunctive relief. This section applies
to all contracts now in effect which have no expiration date and are continuing
contracts and all other contracts entered, amended, or renewed after July 31, 2003.
Any contract in force and effect on August 1, 2003, which by its terms will terminate on
a date subsequent thereto is governed by the law as it existed before August 1, 2003.