Section 45.25.120. Notice of termination.

   (a) A manufacturer shall furnish a notice of termination of a franchise agreement to a new motor vehicle dealer at least
        (1) 90 days before the effective date of a termination, except as required under (2) or (3) of this subsection;
        (2) 15 days before the effective date of a termination when the new motor vehicle dealer
             (A) is insolvent or is the subject of a bankruptcy or receivership proceeding;
             (B) has failed to conduct its customary sales and service operations during its customary business hours for seven consecutive business days; this subparagraph does not apply to closures due to acts of God or circumstances beyond the direct control of the new motor vehicle dealer; or
             (C) is convicted of a felony involving moral turpitude or fraud under the law of this state, another state, the federal government, a territory of the United States, or the District of Columbia;
        (3) 180 days before the effective date of the termination if the manufacturer or distributor is discontinuing the sale of the product line.
   (b) Notice required under (a) of this section must be in writing, shall be sent by certified mail or personally delivered to the new motor vehicle dealer, and must contain
        (1) a statement of intention to terminate the franchise;
        (2) a statement of the reasons for the termination; and
        (3) the date on which the termination takes effect.

Authorities

45.25.110

Notes

Recent Bills that will modify this

HB 318 MOTOR VEHICLE DEALER FRANCHISES
SB 197 MOTOR VEHICLE DEALER FRANCHISES

References

AS 45.25.110 Termination of franchise agreements.

History

(Sec. 9 ch 79 SLA 2002)