HB 549 -- Marine Franchise Dealers

Sponsor:  Whorton

This bill prohibits marine manufacturers from terminating or
renewing a dealership agreement or substantially changing the
competitive circumstances of a dealership without good cause.
The bill spells out circumstances that are considered good cause.

Manufacturers will be required to provide a notice at least 120
days prior to any termination, cancellation, or nonrenewal of a
dealership agreement.  A dealer will have 120 days to cure any
claimed deficiency.  A dealer must provide notice of intent to
cure deficiencies within the 120-day period.  Termination will
take effect 30 days after the dealer's receipt of the
manufacturer's notice, unless the dealer has new inventory on
hand.  In that case, upon dealer request, it will take effect
upon the sale of the remaining inventory but no later than 120
days from the manufacturer's notice of termination.

Dealers may terminate a dealer agreement at any time by giving
written notice to the manufacturer at least 90 days prior to the
effective date specified for termination.

On change of ownership, dealers must give a 30-day written notice
to the manufacturer.  Manufacturers cannot refuse a proposed
change or sale and may not disapprove or withhold approval unless
the manufacturer can show its decision is based on a reasonable
criterion such as business experience, moral character, financial
qualifications, or criminal record.  Manufacturers have 30 days
to provide written notice of rejection of a proposed change or
sale.

The bill provides for legal action upon unlawful termination or
failure of renewal of a dealership.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am