Oregon Statutes - Chapter 650 - Franchise Transactions - Section 650.340 - Termination, cancellation or failure to renew; notice; grounds.

(1) Without good cause, a grantor may not:

(a) Terminate, cancel or fail to renew a dealership agreement.

(b) During the term of a dealership agreement, take an action that has a substantial adverse effect on a dealerís ability to sell or lease recreational vehicles, including changing the dealerís area of sales responsibility.

(2) A grantor shall give a dealer at least 120 daysí written notice of termination or cancellation of or failure to renew the dealerís dealership agreement.

(3) In a notice of termination, cancellation or failure to renew, the grantor shall state:

(a) The reasons for the termination, cancellation or failure to renew;

(b) That the dealer has 30 days from the dealerís receipt of the notice to notify the grantor in writing of the dealerís intent to cure any deficiencies that formed the basis for the termination, cancellation or failure to renew;

(c) That, if the dealer notifies the grantor as provided in paragraph (b) of this subsection, the dealer has 120 days from the dealerís receipt of the notice of termination, cancellation or failure to renew within which to cure the deficiencies;

(d) That, upon a written request by the dealer showing good cause for an extension of the 120-day period, the grantor may give the dealer up to an additional 60 days within which to cure the deficiencies; and

(e) That, if the dealer cures the deficiencies, the grantor will rescind the notice of termination, cancellation or failure to renew.

(4) If a dealer that notifies a grantor of the dealerís intent to cure the deficiencies on which a grantor based a termination, cancellation or failure to renew cures the deficiencies within the time prescribed by the grantor, the grantor shall rescind the notice of termination, cancellation or failure to renew.

(5) Subsections (2) to (4) of this section do not apply if the reason for the termination, cancellation or failure to renew is the dealerís bankruptcy, insolvency or assignment of assets for the benefit of creditors.

(6) Notwithstanding subsection (2) of this section, a termination or cancellation of or failure to renew a dealership agreement:

(a) Takes effect 30 days after the dealer receives notice of termination, cancellation or failure to renew and the grounds for termination, cancellation or failure to renew is:

(A) A felony conviction of the dealer or a principal owner of the dealer;

(B) The closing of the dealership for 10 consecutive business days, except if the closing is due to:

(i) An act of God;

(ii) A strike, lockout or other labor dispute;

(iii) A scheduled seasonal or holiday closing; or

(iv) A cause over which the dealer has no control; or

(C) Suspension or revocation of or failure to renew the dealerís certificate under ORS 822.020.

(b) Takes effect 31 days after the dealer receives the notice of termination, cancellation or failure to renew if:

(A) The dealer did not notify the grantor as provided in subsection (3)(b) of this section; and

(B) On the 31st day after receiving the notice of termination, cancellation or failure to renew, the dealer does not possess new recreational vehicles from the grantor that the dealer has not sold or leased to a consumer.

(7) A dealer may cancel a dealership agreement by giving 30 daysí written notice of cancellation to the grantor. [2003 c.377 §5]

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Last modified: August 7, 2008