§1174-C. Survivorship








1. Right of family member. 
The right of a designated family member to succeed in dealer ownership is governed
by the following provisions.





A. A designated family member of a deceased, incapacitated or retiring new motor vehicle
dealer, which family member has been designated under the will of the dealer or in
writing to the manufacturer, distributor, factory branch, factory representative or
importer, may succeed the dealer in the ownership or operation of the dealership under
the existing franchise or distribution agreement if the designated family member gives
the manufacturer, distributor, factory branch, factory representative or importer
of new motor vehicles written notice of the intention to succeed to the dealership
within 120 days of the dealer's death, incapacity or retirement and unless there exists
good cause for refusal to honor the succession on the part of the manufacturer, factory
branch, factory representative, distributor or importer. [2003, c. 356, §9 (AMD).]










B. The manufacturer, distributor, factory branch, factory representative or importer
may request and the designated family member shall provide, upon the request, on forms
provided for that purpose, personal and financial data that is reasonably necessary
to determine whether the succession shall be honored. [1981, c. 331, §7 (NEW).]










C. In addition to a designated family member, a person who has been a general manager
or other employee with significant and varied managerial experience for a dealer for
at least 5 years may be designated by that dealer to succeed in dealer ownership,
and the designee has the same rights and status as a designated family member. [1997, c. 521, §24 (NEW).]







[
2003, c. 356, §9 (AMD)
.]








2. Refusal to honor; notice required. 
The refusal to honor the succession to ownership is governed by the following provisions.






A. If a manufacturer, distributor, factory branch, factory representative or importer
believes that good cause exists for refusing to honor the succession to the ownership
and operation of a dealership by a family member of a deceased or incapacitated new
motor vehicle dealer under the existing franchise agreement, the manufacturer, distributor,
factory branch, factory representative or importer may, within 60 days of receipt
of the information requested in subsection 1, paragraph B, serve upon the designated
family member notice of its refusal to honor the succession or its intent to discontinue
the existing franchise agreement with the dealership no sooner than 90 days from the
date the notice is served. [1981, c. 331, §7 (NEW).]










B. The notice shall state the specific grounds for the refusal to honor the succession
and of its intent to discontinue the existing franchise agreement with the dealership
no sooner than 90 days from the date the notice is served. [1981, c. 331, §7 (NEW).]










C. If notice of refusal and discontinuance is not timely served upon the family member,
the franchise agreement shall continue in effect subject to termination only as otherwise
permitted by this section. [1981, c. 331, §7 (NEW).]







[
1981, c. 331, §7 (NEW)
.]








3. Written designation of succession unaffected. 
This section does not preclude a new motor vehicle dealer from designating any person
as his successor by written instrument filed with the manufacturer, distributor, factory
branch, factory representative or importer.


[
1981, c. 331, §7 (NEW)
.]





SECTION HISTORY

1981, c. 331, §7 (NEW).
1997, c. 521, §§23,24 (AMD).
1997, c. 521, §24 (AMD).
2003, c. 356, §9 (AMD).