North Dakota § 51-07-26.1 Refusal to honor succession

North Dakota Statutes

§ 51-07-26.1 — Refusal to honor succession

North Dakota § 51-07-26.1

Title 51Sales and Exchanges

Ch. 51-07Miscellaneous Provisions

This text of North Dakota § 51-07-26.1 (Refusal to honor succession) 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 § 51-07-26.1 (2026).

Text

1.If a manufacturer, wholesaler, or distributor believes that good cause exists to refuse to honor the intended succession under section 51-07-26, then the manufacturer, wholesaler, or distributor shall serve the named successor written notice of refusal to honor the intended succession within sixty days of its receipt of the notice of the intended succession. The notice must contain specific grounds for the refusal to honor the succession.

2.If notice of refusal to honor the intended succession is not timely served upon the intended successor, the successor may continue the franchise subject only to termination as permitted otherwise in this chapter.

3.In determining whether good cause exists for the refusal to honor the intended succession, the manufacturer, wholesaler, or distributor

Free access — add to your briefcase to read the full text and ask questions with AI

1. If a manufacturer, wholesaler, or distributor believes that good cause exists to refuse to
honor the intended succession under section 51-07-26, then the manufacturer,
wholesaler, or distributor shall serve the named successor written notice of refusal to
honor the intended succession within sixty days of its receipt of the notice of the
intended succession. The notice must contain specific grounds for the refusal to honor
the succession.
2. If notice of refusal to honor the intended succession is not timely served upon the
intended successor, the successor may continue the franchise subject only to
termination as permitted otherwise in this chapter.
3. In determining whether good cause exists for the refusal to honor the intended
succession, the manufacturer, wholesaler, or distributor has the burden of proving that
the intended successor is not a person of good moral character or does not meet the
franchisor's existing and reasonable standards. Good cause for refusal to honor
succession does not include the owner's dealership being dualed with another
manufacturer's line.