§ 40-20-115 — Termination of dealer agreements

Wyoming § 40-20-115

• Jurisdiction: Wyoming
• Title 40: Trade and Commerce
• Ch. 20: WYOMING FAIR PRACTICES OF EQUIPMENT MANUFACTURERS,

Text

(a) A dealer may terminate a dealer agreement without
cause. The dealer shall give the supplier at least thirty (30)
days prior written notice of termination. No supplier may
terminate a dealer agreement without good cause. Notice from
the supplier to the dealer shall be as provided in W.S.
40-20-116 and 40-20-117. Except as otherwise specifically
provided in this chapter, good cause means the failure by a
dealer to substantially comply with essential and reasonable
requirements imposed upon the dealer by the dealer agreement,
provided the requirements are not different from those
requirements imposed on other similarly situated dealers either
by their terms or in the manner of their enforcement. In
addition, good cause shall exist whenever:
(i) The dealer or dealership has transferred a
controlling ownership interest in its business without the
supplier's consent;
(ii) The dealer has filed a voluntary petition in
bankruptcy or has had an involuntary petition in bankruptcy
filed against it which has not been discharged within thirty
(30) days after the filing, there has been a closeout or sale of
a substantial part of the dealer's assets related to the
business or there has been a commencement of dissolution or
liquidation of the dealer;
(iii) There has been a deletion, addition or change
in dealer or dealership locations without the prior written
approval of the supplier;
(iv) The dealer has defaulted under any chattel
mortgage or other security agreement between the dealer and the
supplier or there has been a revocation of any guarantee of the
dealer's present or future obligations to the supplier. Good
cause shall not exist if a person revokes any guarantee in
connection with or following the transfer of the person's entire
ownership interest in the dealer unless the supplier requires
the new person to execute a new guarantee of the dealer's
present or future obligations in connection with the transfer of
ownership interest;
(v) The dealer has failed to operate in the normal
course of business for seven (7) consecutive days or has
otherwise abandoned its business;
(vi) The dealer has pleaded guilty to or has been
convicted of a felony affecting the relationship between the
dealer and supplier;
(vii) The dealer has engaged in conduct which is
injurious or detrimental to the dealer's customers or to the
public welfare or the representation or reputation of the
supplier's product;
(viii) The dealer has consistently failed to meet and
maintain the supplier's requirements for reasonable standards
and performance objectives, so long as the supplier has given
the dealer reasonable standards and performance objectives that
are based on the manufacturer's experience in other comparable
market areas.
(b) The provisions of this section shall not apply to the
dealer agreements between a single line dealer and the single
line supplier.