§ 339-C:19 — Supplier's Consent to Sale of Franchise

I. Notwithstanding the terms of any franchise, a supplier may not refuse to consent to the sale, transfer or assignment of a franchise by a dealer unless:
(a) The proposed purchaser, transferee or assignee:
(1) Has less business experience and training than that normally required by the supplier of prospective dealers;
(2) Has fewer financial resources than those normally required;
(3) Does not satisfy uniform requirements, if any, required by the supplier of prospective dealers at the time of the proposed sale, transfer or assignment; or
(4) Operates a franchise under an agreement with a supplier other than the supplier to whom the sale, transfer or assignment is proposed if the supplier requires that prospective dealers not operate under an agreement with another supplier; or
(b) The dealer has not offered in writing to sell, transfer or assign the franchise to the supplier on terms and conditions which are the same as those of the proposed sale, transfer or assignment, and the dealer has allowed the supplier at least 30 days in which to accept or decline his offer prior to the sale, transfer or assignment of the franchise.
II. Notwithstanding the terms of any franchise which is held by a corporation, a supplier shall consent to the sale, transfer or assignment of a franchise by a dealer if:
(a) The dealer has a controlling interest in the corporation; or
(b) The dealer offers in writing to guarantee personally the corporation's performance of its obligations under the franchise.

Legislative History

1983, 456:2, eff. Oct. 1, 1983.