Section 45.27.020. Cancellation or nonrenewal of agreement.

   (a) A manufacturer may not cancel or decline to renew a dealership agreement with an authorized dealer unless
        (1) the manufacturer has
             (A) satisfied the notice requirements of this chapter; and
             (B) shown that there is good cause for the cancellation or nonrenewal of the dealership agreement, and, if the reasons underlying the good cause can be corrected by the authorized dealer, the authorized dealer has failed for 60 days after delivery of the notice required by AS 45.27.030 to make the corrections; the circumstances identified under AS 45.27.030(a)(2), for which a 15-day notice of cancellation or nonrenewal is required, do not qualify as reasons for which correction is allowed under this paragraph; or
        (2) the authorized dealer has engaged in fraud
             (A) against consumers or the manufacturer; or
             (B) in the operation of the authorized dealer's dealership.
   (b) Under (a)(1)(B) of this section, an authorized dealer may not prevent a cancellation or nonrenewal of a dealership agreement more than two times by making corrections.
   (c) Notwithstanding (a)(1) of this section, a manufacturer may not cancel or decline to renew a dealership agreement with an authorized dealer because of the death or incapacity of an owner if the owner is not listed in the agreement as one on whose expertise and abilities the manufacturer relied in the granting of the agreement.
   (d) In this section, "good cause" includes circumstances in which the authorized dealer fails to comply with or observe a material provision of the dealership agreement with the authorized dealer. For the purpose of determining good cause under this subsection, reasonable sales and service performance criteria and capital and facility requirements may be considered material provisions only if the criteria or requirements were communicated in writing to the authorized dealer within a reasonable period of not less than six months before the effective date of the cancellation or nonrenewal, to afford the authorized dealer a reasonable opportunity to comply with the criteria or requirements.

Authorities

45.27.050

Notes

References

AS 45.27.050 Repurchase obligations on cancellation or nonrenewal.

History

(Sec. 2 ch 28 SLA 2009)