KRS § 190A.050 — KY Code / Title XVI / Chapter 190A / Section 190A.050
190A.050 New recreational vehicle dealer may terminate a dealer agreement with recreational vehicle manufacturer with or without good cause -- Conditions applicable to termination -- Burden of showing good cause -- Notice -- Clear title required for inventory to be repurchased by manufacturer
Status: in_force

190A.050 New recreational vehicle dealer may terminate a dealer agreement with

recreational vehicle manufacturer with or without good cause -- Conditions

applicable to termination -- Burden of showing good cause -- Notice -- Clear

title required for inventory to be repurchased by manufacturer.

(1) A new recreational vehicle dealer may terminate a dealer agreement with a

recreational vehicle manufacturer with or without good cause. If the dealer

terminates or does not renew the dealer agreement with good cause, the

manufacturer shall comply with the provisions of subsection (5) of this section. If

the dealer terminates or does not renew the dealer agreement without good cause,

the provisions of subsection (5) of this section shall not apply. A dealer that

terminates a dealer agreement for good cause shall provide the manufacturer with

written notice at least ninety (90) days prior to the effective date of the termination

of the dealer agreement.

(2) All of the following conditions shall apply to a termination of a dealer agreement

under this section for good cause:

(a) The notice described in subsection (1) of this section shall state all reasons for

the proposed termination; and

(b) The notice described in subsection (1) of this section shall state that if the

manufacturer provides to the dealer within thirty (30) days after the

manufacturer receives the notice of termination a written notification of intent

to cure all claimed deficiencies, the manufacturer shall have ninety (90) days

after the manufacturer's receipt of the original notice to correct the

deficiencies. If all of the deficiencies are corrected within the ninety (90) day

period, the notice shall be deemed void and the dealer shall not terminate the

dealer agreement because of the claimed deficiencies stated in the notice. If

the manufacturer does not provide a notification of intent to cure deficiencies

within thirty (30) days of receiving the original notice, the termination shall

take effect thirty (30) days from the manufacturer's receipt of the original

notice.

(3) The dealer has the burden of showing good cause. Any of the following factors shall

be considered good cause for the proposed termination of a dealer agreement by a

dealer:

(a) A conviction of a felony or a plea of guilty or nolo contendere to a felony by a

manufacturer of a crime that was committed during the time frame of the

current dealer agreement; provided there is full disclosure, in writing, of any

felony conviction or plea of guilty or nolo contendere to any such felony crime

that occurred within ten (10) years of entering into the dealer agreement;

(b) Abandonment or permanent closing of the business operations of the

manufacturer for ten (10) consecutive business days without contacting the

dealer prior to the closing, unless the closing is due to an act of God, strike,

labor difficulty, or other cause over which the manufacturer has no control;

(c) A misrepresentation to the dealer by the manufacturer that materially affects

the business relationship between the dealer and manufacturer;

(d) A material violation of any of the provisions of this chapter by the

manufacturer;

(e) A material breach of the dealer agreement by the manufacturer; or

(f) The manufacturer becomes insolvent, is bankrupt, or makes an assignment for

the benefit of the creditors.

(4) A dealer is not required to provide notice or an opportunity to correct deficiencies

under this section if the grounds for termination or nonrenewal of the dealer

agreement by the dealer includes one (1) of the following:

(a) The manufacturer becomes insolvent;

(b) The manufacturer is bankrupt; or

(c) The manufacturer makes an assignment for the benefit of creditors.

(5) If the manufacturer fails to provide the notice of intent to cure or fails to cure any

claimed deficiencies pursuant to subsection (2) of this section, the manufacturer

shall, at the election of the dealer and within forty-five (45) days after termination

or nonrenewal, repurchase as follows:

(a) All new, untitled recreational vehicles that were acquired from the

manufacturer within the twelve (12) months prior to the effective date of the

notice of termination of the dealer agreement that have not been used, except

for demonstration purposes, and that have not been altered or damaged, may

be repurchased at one hundred percent (100%) of the net invoice cost of the

recreational vehicles, including transportation, less applicable rebates and

discounts to the dealer. In the event any of the vehicles repurchased pursuant

to this paragraph are damaged, but do not trigger a consumer disclosure

requirement, the amount due the dealer shall be reduced by the cost to repair

the vehicle. Damage prior to delivery to the dealer that is disclosed at the time

of delivery shall not disqualify repurchase of that vehicle under this section;

(b) All current and undamaged accessories and proprietary parts sold to the dealer

for resale by the manufacturer or distributor within the twelve (12) months

prior to the effective date of the termination of the dealer agreement that are

accompanied by the original invoice may be repurchased at one hundred five

percent (105%) of the original net price paid to the manufacturer to

compensate the dealer for handling, packing, and shipping the accessories and

parts; and

(c) Any properly functioning diagnostic equipment, special tools, current signage,

and other equipment and machinery at one hundred percent (100%) of the

dealer's net cost plus freight, destination, delivery, and distribution charges

and sales taxes, if any, shall be repurchased if it was purchased by the dealer

upon the manufacturer's request within five (5) years before termination,

cancellation, or nonrenewal, and it can no longer be used in the normal course

of the dealers' ongoing business. The manufacturer or distributor shall pay the

dealer within thirty (30) days after receipt of the returned items.

(6) The dealer shall show clear title to vehicle inventory and promptly return or arrange

for the return of all the items the manufacturer is required to repurchase under

subsection (5) of this section at the expense of the manufacturer.