North Dakota § 51-07-02.2 Dealership transfers

North Dakota Statutes

§ 51-07-02.2 — Dealership transfers

North Dakota § 51-07-02.2

Title 51Sales and Exchanges

Ch. 51-07Miscellaneous Provisions

This text of North Dakota § 51-07-02.2 (Dealership transfers) 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 § 51-07-02.2 (2026).

Text

1.A dealer of automobiles or trucks, farm equipment, or parts for automobiles, trucks, or farm equipment may not transfer, assign, or sell a dealer agreement to another person unless the dealer first provides written notice to the manufacturer or distributor of the intended action. Within sixty days of receiving the notice, the manufacturer or distributor must approve or deny the action. If the manufacturer or distributor denies the action, the manufacturer or distributor shall provide material reasons for the denial to the dealer. If the manufacturer or distributor does not respond within the sixty-day period, the action is deemed approved.

2.A denial by the manufacturer or distributor to accept a proposed transferee who meets the written, reasonable, and uniformly applied standards of

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1. A dealer of automobiles or trucks, farm equipment, or parts for automobiles, trucks, or
farm equipment may not transfer, assign, or sell a dealer agreement to another person
unless the dealer first provides written notice to the manufacturer or distributor of the
intended action. Within sixty days of receiving the notice, the manufacturer or
distributor must approve or deny the action. If the manufacturer or distributor denies
the action, the manufacturer or distributor shall provide material reasons for the denial
to the dealer. If the manufacturer or distributor does not respond within the sixty-day
period, the action is deemed approved.
2. A denial by the manufacturer or distributor to accept a proposed transferee who meets
the written, reasonable, and uniformly applied standards of qualifications of the
manufacturer or distributor relating to the financial qualifications of the transferee and
business experience of the transferee is presumed to be unreasonable. If an action is
denied by the manufacturer or distributor, the dealer may file an action for
determination of a violation of this subsection. The dealer may pursue the dealer's
remedy under the contract or the remedy provided in this subsection. The
manufacturer or distributor has the burden of proof regarding all issues raised in the
action. The court shall approve the transfer unless the manufacturer or distributor can
prove the proposed transferee does not meet the written, reasonable, and uniformly
applied standards regarding financial qualifications and business experience.
3. As used in this section, "farm equipment" has the same meaning as in section
51-07-01.2.