§ 6-50-4 — § 6-50-4. Notice of termination or change in dealership.

Rhode Island § 6-50-4

• Jurisdiction: Rhode Island
• Title 6: Commercial Law – General Regulatory Provisions
• Ch. 6-50: The Rhode Island Fair Dealership Act

Text

§ 6-50-4. Notice of termination or change in dealership.

(a) Notwithstanding the terms, provisions, or conditions of any agreement to the contrary, a grantor shall provide a dealer sixty (60) days prior, written notice of termination, cancellation, or nonrenewal. The notice shall state all the reasons for termination, cancellation, or nonrenewal and shall provide that the dealer has thirty (30) days in which to cure any claimed deficiency; provided that a dealer has a right to cure three (3) times in any twelve-month (12) period during the period of the dealership agreement. The sixty-day (60) notice provisions of this section shall not apply and the termination, cancellation, or nonrenewal may be made effective immediately upon written notice if the reason for termination, cancellation, or nonrenewal is in the event the dealer: (1) Voluntarily abandons the dealership relationship; (2) Is convicted of a felony offense related to the business conducted pursuant to the dealership; (3) Engages in any substantial act that tends to materially impair the goodwill of the grantor's trade name, trademark, service mark, logotype, or other commercial symbol; (4) Makes a material misrepresentation of fact to the grantor relating to the dealership; (5) Attempts to transfer the dealership (or a portion thereof) without authorization of the grantor; or (6) Is insolvent, files, or suffers to be filed against it, any voluntary or involuntary bankruptcy petition or makes an assignment for the benefit of creditors or similar disposition of assets of the dealer business.

(b) If the reason for termination, cancellation, or nonrenewal is nonpayment of sums due under the dealership, the dealers shall be entitled to written notice of such default and shall have ten (10) days in which to cure such default from the date of such notice. A dealer has the right to cure three (3) times in any twelve-month (12) period during the period of the dealership agreement.

(c) If the reason for termination, cancellation, or nonrenewal is for violation of any law, regulation, or standard relating to public health or safety, the dealer shall be entitled to immediate, written notice and shall have twenty-four (24) hours to cure such violation.

Legislative History

P.L. 2007, ch. 28, § 1; P.L. 2007, ch. 36, § 1; P.L. 2008, ch. 347, § 1; P.L. 2008, ch. 373, § 1; P.L. 2014, ch. 528, § 37.