2023 New York Laws › GBS - General Business › Article 33-A - Dealer Agreements for the Sale of Farm Equipment › 696-C - Termination and Non-Renewal of Dealer Agreements.

§  696-c.  Termination and non-renewal of dealer agreements. 1. Except
where a grounds for termination or non-renewal of a dealer agreement are
contained in paragraph (a), (b), (c), (d), (e) or (f) of subdivision two
of this section, a supplier shall give a  dealer  ninety  days'  written
notice  of  the  supplier's  intent  to terminate, cancel or not renew a
dealer agreement. The contractual term of the dealer agreement shall not
expire, without  the  written  consent  of  the  dealer,  prior  to  the
expiration  of  at  least ninety days following such notice.  Nothing in
this section shall prohibit a dealer from terminating a dealer agreement
with cause provided, however, that the dealer  notify  the  supplier  in
writing  at  least  ninety  days  prior  to  the  effective date of such
termination with the reasons for such termination. This notice will  not
apply for grounds of termination in following paragraphs (a) through (f)
of subdivision two of this section.
2.  As  used  in this article, a termination by a supplier of a dealer
agreement shall be with cause when the dealer has:
(a) transferred a controlling ownership  interest  in  the  dealership
without the supplier's consent;
(b)  made  a  material  misrepresentation  in  applying for the dealer
agreement;
(c) filed a voluntary petition in bankruptcy or has had an involuntary
petition in bankruptcy filed against  the  dealer  which  has  not  been
discharged  within  sixty days after the filing; is in default under the
provisions of a security agreement in effect with the  supplier;  or  is
insolvent or in receivership;
(d)  been  convicted of a crime, punishable for a term of imprisonment
for one year or more;
(e) failed to operate  in  the  normal  course  of  business  for  ten
consecutive business days or has terminated said business;
(f)  Significantly  relocated  the  dealer's place of business without
supplier's consent; or
(g) consistently engaged in business practices which  are  detrimental
to  the  consumer  or  supplier  by way of excessive pricing, misleading
advertising, failure to provide service and replacement parts or perform
warranty obligations;
(h) inadequately represented supplier over a measured  period  causing
lack  of  performance  in sales, service or warranty areas and failed to
achieve market penetration at levels consistent  with  similary  located
dealerships based on available recorded information compiled by industry
associations  regarded as the authorities in this area both in local and
national standards;
(i)  consistently   failed   to   meet   building   and   housekeeping
requirements,  or has failed to provide adequate sales, service or parts
personnel commensurate with the dealer agreement;
(j) consistently failed to comply with the applicable  licensing  laws
pertaining  to  the  products  and services being represented for and on
supplier's behalf;
(k) consistently failed to comply with the  terms  of  the  dealership
agreement.
3.  No supplier shall base its decision to terminate, cancel or not to
renew a dealer agreement on any of the paragraphs of subdivision two  of
this  section  except  paragraph  (a), (b), (c), (d), (e) or (f) thereof
unless such supplier can demonstrate, through written documentation, the
alleged misconduct  and/or  lack  of  performance  by  the  dealer,  and
furthermore,  such  supplier  shall  also  show  that the reason for the
decision to terminate, cancel or not to renew the dealer  agreement  was
in no way caused by such supplier.