Modification or replacement of franchise: Notice; grounds; protest by dealer; hearing.
1. A manufacturer or distributor shall not modify the franchise of a dealer or replace the franchise with another franchise if the modification or replacement would have a substantially adverse effect upon the dealer’s investment or his obligations to provide sales and service, unless:
(a) The manufacturer or distributor has given written notice of its intention to the Director and the dealer affected by the intended modification or replacement; and
(b) Either of the following conditions occurs:
(1) The dealer does not file a protest with the Director within 30 days after receiving the notice; or
(2) After a protest has been filed with the Director and the Director has conducted a hearing, the Director issues an order authorizing the manufacturer or distributor to modify or replace the franchise.
2. The notice required by this section must be given to the dealer and to the Director at least 60 days before the date on which the intended action is to take place.
Last modified: February 25, 2006