Termination or discontinuation of franchise: Notice; grounds; protest by dealer; hearing.
1. Notwithstanding the terms of any franchise, a manufacturer or distributor shall not terminate or refuse to continue any franchise unless it has received the written consent of the dealer or:
(a) It has given written notice of its intention to the dealer and the Director; and
(b) Either of the following conditions occurs:
(1) The dealer does not file a protest with the Director within the time allowed by this section; or
(2) After the dealer has filed a protest and the Director has conducted a hearing on the matter, the Director issues an order authorizing the manufacturer or distributor to terminate the franchise or permit it to lapse.
2. The notice required by this section must be given to the dealer and the Director:
(a) At least 15 days before the effective date of the intended termination or the date on which the existing franchise is to expire if the grounds for the termination or refusal include any of the following:
(1) Except as otherwise provided in NRS 482.36396 to 482.36414, inclusive, transfer of any ownership or interest in the franchised dealership without the consent of the manufacturer or distributor unless that consent has been withheld without good cause;
(2) Material misrepresentation by the dealer in applying for the franchise;
(3) Insolvency of the dealer or the filing of any petition by or against the dealer under any law governing bankruptcy or receivership;
(4) Any unfair business practice by the dealer after the manufacturer or distributor has issued a written warning to the dealer to desist from that practice;
(5) Revocation of a dealerís license under this chapter;
(6) Conviction of the dealer for a felony; and
(7) Closure by the dealer for a period longer than 14 days, unless the closure was caused by a force beyond the control of the dealer.
(b) At least 60 days before the effective date of the intended termination or the date on which the existing franchise is to expire if the grounds for the termination or refusal do not include one or more of those set forth in paragraph (a).
The notice required by this section must include a statement of the particular grounds for the intended termination or refusal to continue a franchise.
3. A dealer who has received a notice pursuant to this section may file a protest with the Director:
(a) Within 10 days after receiving the notice if it states one or more of the grounds specified in paragraph (a) of subsection 2;
(b) Within 30 days after receiving the notice if it does not state one of the grounds specified in that paragraph; or
(c) In either case, within 30 days after the end of any appellate procedure provided by the manufacturer or distributor.
Last modified: February 25, 2006