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§4094. Refusal to honor succession to ownership; notice required


Published: 2015

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The Vermont Statutes Online



Title

09

:
Commerce and Trade






Chapter

108

:
MOTOR VEHICLE MANUFACTURERS, DISTRIBUTORS, AND DEALERS FRANCHISING











 

§

4094. Refusal to honor succession to ownership; notice required

(a) If a

manufacturer or distributor believes that good cause exists for refusing to

honor the succession to the ownership of a new motor vehicle dealer by a family

member of a deceased or incapacitated owner of a new motor vehicle dealer under

the existing franchise agreement, the manufacturer or distributor may, not more

than 60 days following receipt of notice of the designated family member's

intent to succeed to the ownership of the new motor vehicle dealer, or any

personal or financial data which it has requested, serve upon the designated

family member notice of its refusal to honor the succession and of its intent

to discontinue the existing franchise with the dealer no sooner than 90 days

from the date the notice is served.

(b) The notice

must state the specific grounds for the refusal to honor the succession and of

its intent to discontinue the existing franchise with the new motor vehicle

dealer no sooner than 90 days from the date the notice is served.

(c) If notice of

refusal and discontinuance is not timely served upon the family member, the

franchise shall continue in effect subject to termination only as otherwise

permitted by this chapter.

(d) In the event

of a conflict between the written instrument filed by the motor vehicle dealer

with the manufacturer designating a certain person as his or her successor and

the provisions of this section, the written instrument filed with the

manufacturer shall govern. (Added 1981, No. 157 (Adj. Sess.), § 1, eff. April

14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)