(1) As used in this section:
(a) “Good cause” means a retailer’s:
(A) Failing to comply with a term of a retail agreement that is the same as a term in the supplier’s agreements with similarly situated retailers, including failure to meet marketing criteria;
(B) Transferring a controlling ownership interest in the retailer’s business without the supplier’s consent;
(C) Making a material misrepresentation or falsification of a record, contract, report or other document that the retailer has submitted to the supplier;
(D) Filing a voluntary petition in bankruptcy;
(E) Being placed involuntarily in bankruptcy and not discharging the bankruptcy within 60 days after the filing;
(F) Becoming insolvent;
(G) Being placed in a receivership;
(H) Pleading guilty to, being convicted of or being imprisoned for a felony;
(I) Failing to operate in the normal course of business for seven consecutive business days or terminating business;
(J) Relocating or establishing a new or additional place or places of business without the supplier’s consent;
(K) Failing to satisfy a payment obligation as it comes due and payable to the supplier;
(L) Failing to promptly account to the supplier for any proceeds of the sale of farm implements or otherwise failing to hold the proceeds in trust for the benefit of the supplier;
(M) Consistently engaging in business practices that are detrimental to the consumer or supplier, including, but not limited to, excessive pricing, misleading advertising or failure to provide service and replacement parts or to perform warranty obligations;
(N) Inadequately representing the supplier, causing lack of performance in sales, service or warranty areas, and failing to achieve satisfactory market penetration at levels consistent with similarly situated retailers based on available documented information;
(O) Consistently failing to meet building and housekeeping requirements; or
(P) Consistently failing to comply with the licensing laws that apply to the supplier’s products and services.
(b) “Similarly situated retailer” means a retailer:
(A) In a similar geographic area;
(B) With similar sales volumes; and
(C) In a similar market for farm implements, machinery and repair parts.
(2) With good cause, a supplier, directly or through an officer, agent or employee, may terminate, cancel, fail to renew or substantially change the competitive circumstances of a retailer agreement. The termination, cancellation, nonrenewal or change becomes effective upon notice to the retailer. The notice shall state the reasons constituting good cause for the termination, cancellation, nonrenewal or change.
(3)(a) Except as provided in subsection (2) of this section, a supplier shall give a retailer 90 calendar days’ written notice of the supplier’s intent to terminate, cancel or fail to renew a retailer agreement or change the competitive circumstances of a retailer agreement.
(b) The notice shall:
(A) State the reasons for termination, cancellation, nonrenewal or change; and
(B) Provide that the retailer has 60 calendar days in which to cure a claimed deficiency.
(c) If the retailer cures the deficiency within 60 calendar days, the notice is void.
(d) If the retailer fails to cure the deficiency within 60 calendar days, the termination, cancellation, failure to renew or change in competitive circumstances becomes effective on the date specified in the notice.
(4)(a) Notwithstanding subsection (3) of this section, a supplier shall give a retailer one year’s written notice of the retailer’s failure to meet reasonable marketing criteria.
(b) The notice shall:
(A) State the reasonable marketing criteria that the retailer has failed to meet; and
(B) Provide the retailer one year in which to meet the criteria.
(c)(A) If the retailer fails to meet the criteria within the year, the supplier may give notice of the termination, cancellation, failure to renew the retail agreement or change to the retail agreement.
(B) A termination, cancellation, failure to renew or change under this paragraph is effective 180 calendar days after the supplier gives notice. [Formerly 646.449]
Section: Previous 646A.290 646A.300 646A.302 646A.304 646A.306 646A.308 646A.310 646A.312 646A.314 646A.316 646A.318 646A.320 646A.322 646A.325 646A.327 NextLast modified: August 7, 2008