§ 3-254.3 — Fraud - False or misleading statements - Unfair business

practices - Failure to comply with agreement. Notwithstanding any contractual provision in any agreement to the contrary, no manufacturer, in connection with the offer, negotiation, sale, purchase, operation, or transfer of any license, dealership, franchise, or other agreement relating to the sale or service of aircraft or aircraft parts shall, directly or indirectly: 1. Employ any device, scheme, or artifice to defraud; or 2. Make any untrue statement of a material fact or omit to state a material fact in order to make the statements made, in light of the circumstances, not be false or misleading; or 3. Engage in any act, practice, or course of business which operates as a fraud, an unfair trade practice, an anticompetitive practice, or a predatory trade practice against the dealer; or 4. Fail to comply with or alter or change in any materially adverse way the fundamental relationship between the manufacturer and dealer without the prior written consent of the dealer, including without limitation, making a material change in any existing agreement in connection with its renewal; or 5. Act in any capricious or arbitrary manner with respect to any material provision in any agreement.

Legislative History

Added by Laws 2004, c. 286, § 2, eff. Nov. 1, 2004. Amended by Laws 2005, c. 107, § 2, eff. Nov. 1, 2005; Laws 2008, c. 292, § 3, emerg. eff. June 2, 2008.