§ 6-54-4. 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 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, excluding a sale or change of ownership; 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 dealer 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 five (5) days to cure such
violation from the date of receipt of the written notice.
(d) No grantor may terminate, cancel, or fail to renew a dealership, directly or indirectly,
or otherwise take any action to diminish the dealership or its value, other than for
good cause. No grantor may terminate, cancel, or fail to renew a dealership, directly
or indirectly, or otherwise take any action to diminish the dealership or its value,
if the dealership shall cure the alleged deficiency or violation in accordance with
the provisions of this chapter.