§ 40-20-116 — Termination of dealer agreements; single line dealers

Wyoming § 40-20-116

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

Text

(a) This section shall only apply to the dealer agreements
between a single line dealer and a single line supplier.
(b) No supplier may terminate a dealer agreement without
good cause. For purposes of this section and W.S. 40-20-118
only, good cause means failure by a dealer to comply with
requirements imposed upon the dealer by the dealer agreement if
the requirements are not different from those imposed on other
similarly situated dealers. In addition, good cause exists
when:
(i) There has been a closeout or sale of a
substantial part of the dealer's assets related to the equipment
business or there has been a commencement of a dissolution or
liquidation of the dealer;
(ii) The dealer has changed its principal place of
business or added additional locations without prior approval of
the supplier, which shall not be unreasonably withheld;
(iii) The dealer has substantially defaulted under a
chattel mortgage or other security agreement between the dealer
and the supplier or there has been a revocation or
discontinuance of a guarantee of a present or future obligation
of the dealer to the supplier;
(iv) The dealer has failed to operate in the normal
course of business for seven (7) consecutive days or has
otherwise abandoned its business;
(v) The dealer has pleaded guilty to or has been
convicted of a felony affecting the relationship between the
dealer and the supplier; or
(vi) The dealer transfers an interest in the
dealership, or a person with a substantial interest in the
ownership or control of the dealership, including an individual
proprietor, partner or major shareholder withdraws from the
dealership, dies or a substantial reduction occurs in the
interest of a partner or major shareholder in the dealership.
Good cause does not exist if the supplier consents to an action
described in this paragraph.
(c) Except as otherwise provided in this subsection, a
supplier shall provide a dealer with at least ninety (90) days
written notice of termination. The notice shall state all
reasons constituting good cause for the termination and shall
state the dealer has sixty (60) days in which to cure any
claimed deficiency. If the deficiency is cured within sixty
(60) days, the notice shall be void. Notwithstanding the
foregoing, if the good cause for termination is due to the
dealer's failure to meet or maintain the supplier's requirements
for market penetration, a reasonable period of time shall have
existed where the supplier has worked with the dealer to gain
the desired market share. The notice and right to cure
provisions under this subsection shall not apply if the reason
for termination is for any reason set forth in paragraphs (b)(i)
through (vi) of this section.