§ 60-1430.01 — Succession to new motor vehicle dealership by family member; conditions

Nebraska § 60-1430.01

• Jurisdiction: Nebraska
• Ch. 60: Motor Vehicles

Text

(1) Any designated
family member of a deceased or incapacitated new motor vehicle dealer may
succeed the dealer in the ownership or operation of the dealership under the
existing dealer agreement if the designated family member gives the manufacturer
or distributor written notice of his or her intention to succeed to the dealership
within one hundred twenty days after the dealer's death or incapacity, agrees
to be bound by all of the terms and conditions of the dealer agreement, and
meets the current criteria generally applied by the manufacturer or distributor
in qualifying new motor vehicle dealers. A manufacturer or distributor may
refuse to honor the existing dealer agreement with the designated family member
only for good cause.
(2) The manufacturer or distributor may request from a designated family
member such personal financial data as is reasonably necessary to determine
whether the existing dealer agreement should be honored. The designated family
member shall supply the personal and financial data promptly upon the request.
(3) If a manufacturer or distributor believes that good cause exists
for refusing to honor that succession, the manufacturer or distributor may,
within sixty days after receipt of the notice of the designated family member's
intent to succeed the dealer in the ownership and operation of the dealership,
or within sixty days after the receipt of the requested personal and financial
data, whichever is later, serve upon the designated family member notice of
its refusal to approve the succession.
(4) The notice of the manufacturer or distributor provided in subsection
(3) of this section shall state the specific ground for the refusal to approve
the succession and that discontinuance of the agreement shall take effect
not less than ninety days after the date the notice is served.
(5) If notice of refusal is not served within the sixty days provided
for in subsection (3) of this section, the dealer agreement shall continue
in effect and shall be subject to termination only as otherwise permitted
by the Motor Vehicle Industry Regulation
Act.
(6) This section shall not preclude a new motor vehicle dealer from
designating any person as his or her successor by written instrument filed
with the manufacturer or distributor, and if such an instrument is filed,
it alone shall determine the succession rights to the management and operation
of the dealership.

Legislative History

Source: Laws 1984, LB 825, § 34; Laws 2010, LB816, § 78.