Mississippi Code 1972 (2023) › Title 63 - MOTOR VEHICLES AND TRAFFIC REGULATIONS (§§ 63-1-1 — 63-NEW01-NEW-014) › Chapter 17 - MANUFACTURE, SALES AND DISTRIBUTION (§§ 63-17-1 — 63-17-221) › RECREATIONAL VEHICLE FRANCHISE LAW (§§ 63-17-201 — 63-17-221) › Section 63-17-205 - Termination, cancellation, nonrenewal and alteration of a dealership

(1)
Manufacturer or distributor termination.
(a)
A manufacturer or distributor, directly or through any authorized officer, agent or employee, may not terminate, cancel or fail to renew a manufacturer-dealer agreement without good cause. If the manufacturer or distributor terminates, cancels or fails to renew the manufacturer-dealer agreement without good cause, the manufacturer or distributor must comply with Section
63-17-207
. If the manufacturer or distributor terminates, cancels or fails to renew the manufacturer-dealer agreement for good cause, Section
63-17-207
does not apply.
(b)
The manufacturer or distributor has the burden of showing good cause for terminating, canceling or failing to renew a manufacturer-dealer agreement with a dealer. For purposes of determining whether there is good cause for the proposed action, any of the following factors may be considered:
(i)
The extent of the affected dealer's penetration in the area of sales responsibility.
(ii)
The nature and extent of the dealer's investment in its business.
(iii)
The adequacy of the dealer's service facilities, equipment, parts, supplies and personnel.
(iv)
The effect of the proposed action on the community.
(v)
The extent and quality of the dealer's service under recreational vehicle warranties.
(vi)
The failure to follow agreed-upon procedures or standards related to the overall operation of the dealership.
(vii)
The dealer's performance under the terms of its manufacturer-dealer agreement.
(c)
Except as otherwise provided in this section, a manufacturer or distributor shall provide a dealer with at least ninety (90) days' prior written notice of termination, cancellation or nonrenewal of the manufacturer-dealer agreement if the dealer is being terminated for good cause.
(i)
The notice must state all reasons for the proposed termination, cancellation or nonrenewal and must further state that if, within thirty (30) days following receipt of the notice the dealer provides to the manufacturer or distributor a written notice of intent to cure all claimed deficiencies, the dealer will then have ninety (90) days following receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within ninety (90) days, the manufacturer's or distributor's notice is voided. If the dealer fails to provide the notice of intent to cure the deficiencies in the prescribed time period, the termination, cancellation or nonrenewal takes effect thirty (30) days after the dealer's receipt of the notice unless the dealer has new and untitled inventory on hand that may be disposed of pursuant to Section
63-17-207
.
(ii)
The notice period may be reduced to thirty (30) days if the manufacturer's or distributor's grounds for termination, cancellation or nonrenewal are due to any of the following good cause factors:
1.
A dealer or one (1) of its owners being convicted of, or entering a plea of nolo contendere to, a felony;
2.
The abandonment or closing of the business operations of the dealer for ten (10) consecutive business days without contacting the manufacturer prior to the closing unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the dealer has no control;
3.
A significant misrepresentation by the dealer materially affecting the business relationship;
4.
A suspension or revocation of the dealer's license, or refusal to renew the dealer's license;
5.
A material violation of Sections
63-17-201
through
63-17-221
which is not cured within thirty (30) days after the written notice by the manufacturer; or
6.
A declaration by the dealer of bankruptcy, insolvency or the occurrence of an assignment for the benefit of creditors or bankruptcy.
(d)
The notice provisions of this subsection (1) do not apply if the reason for termination, cancellation or nonrenewal is the dealer's insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy.
(2)
Dealer termination.
(a)
A dealer may terminate or cancel its manufacturer-dealer agreement with a manufacturer or distributor with or without good cause by giving thirty (30) days' written notice. If the termination or cancellation is for good cause, the notice must state all reasons for the proposed termination or cancellation and must further state that if, within thirty (30) days following receipt of the notice, the manufacturer or distributor provides to the dealer a written notice of intent to cure all claimed deficiencies, the manufacturer or distributor will then have ninety (90) days following receipt of the original notice to rectify the deficiencies. If the deficiencies are rectified within ninety (90) days, the dealer's notice is voided. If the manufacturer or distributor fails to provide the notice of intent to cure the deficiencies in the time period prescribed in the original notice of termination or cancellation, the pending termination or cancellation shall take effect thirty (30) days after the manufacturer's or distributor's receipt of the original notice.
(b)
If the dealer terminates, cancels or fails to renew the manufacturer-dealer agreement without good cause, the terms of Section
63-17-207
do not apply. If the dealer terminates, cancels or fails to renew the manufacturer-dealer agreement with good cause, Section
63-17-207
applies. The dealer has the burden of showing good cause. Any of the following items shall be deemed "good cause" for the proposed termination, cancellation or nonrenewal action by a dealer:
(i)
A manufacturer being convicted of, or entering a plea of nolo contendere to, a felony.
(ii)
The business operations of the manufacturer have been abandoned or closed 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.
(iii)
A significant misrepresentation by the manufacturer materially affecting the business relationship.
(iv)
A material violation of Sections
63-17-201
through
63-17-221
that is not cured within thirty (30) days after written notice by the dealer.
(v)
A declaration by the manufacturer of bankruptcy, insolvency, or the occurrence of an assignment for the benefit of creditors or bankruptcy.
Added by Laws, 2014, ch. 532, HB 742, 3, eff. 10/1/2014.