Rhode Island § 6-46-7 § 6-46-7. Transfer of business.

Rhode Island Statutes

§ 6-46-7 — § 6-46-7. Transfer of business.

Rhode Island § 6-46-7

Title 6Commercial Law – General Regulatory Provisions

Ch. 6-46Equipment Dealerships

This text of Rhode Island § 6-46-7 (§ 6-46-7. Transfer of business.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 6-46-7 (2026).

Text

§ 6-46-7. Transfer of business.
(a) No supplier shall unreasonably withhold or delay consent to any transfer of the dealer's
            business or transfer of the stock or other interest in the dealership whenever the
            dealer to be substituted meets the material and reasonable business and financial
            requirements of the supplier. Should a supplier determine that a proposed transferee
            does not meet these requirements, it shall give the dealer written notice stating
            the specific reasons for withholding consent. No prospective transferee may be disqualified
            to be a dealer because it is a publicly held corporation. A supplier shall have ninety
            (9

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§ 6-46-7. Transfer of business.

(a) No supplier shall unreasonably withhold or delay consent to any transfer of the dealer's business or transfer of the stock or other interest in the dealership whenever the dealer to be substituted meets the material and reasonable business and financial requirements of the supplier. Should a supplier determine that a proposed transferee does not meet these requirements, it shall give the dealer written notice stating the specific reasons for withholding consent. No prospective transferee may be disqualified to be a dealer because it is a publicly held corporation. A supplier shall have ninety (90) days to consider a dealer's request to make a transfer under this subsection.

(b) No supplier shall unreasonably withhold consent to the transfer of the dealer's business to a member or members of the family of the dealer or the principal owner of the dealership if the family member meets the reasonable business ability, business experience, and character standards of the supplier, and if the transferee can demonstrate that the dealership will be adequately capitalized. Should a supplier determine that the designated family member does not meet those requirements, the supplier shall provide the dealer with written notice of the supplier's objection and specific reasons for withholding its consent. As used in this subsection, "familyâ€� means and includes the spouse, parent, siblings, children, stepchildren, and lineal descendants, including those by adoption of the dealer or principal owner of the dealership.

(c) In any dispute as to whether a supplier has denied consent in violation of this section, the supplier shall have the burden of proving a substantial and reasonable justification for the denial of consent.