A. No manufacturer, in its dealings with a dealer, may terminate, cancel, or fail to renew an agreement as defined in Section 254.2 of this title without good cause. As used in this subsection, “good cause” means that the dealer has:

1. Employed a material device, scheme, or artifice to defraud the manufacturer in connection with the performance of the agreement;

2. Made false or materially misleading statements of a material fact or omitted to state a material fact in order to make the statements made, in light of the circumstances, not be false or misleading in connection with the agreement, where the statements made or omissions have had a material adverse effect upon the manufacturer;

3. Engaged in any act, practice, or course of business which operates in a material way as a fraud upon the manufacturer;

4. Failed to comply with any material provision of the agreement which has had a material adverse effect upon the manufacturer, and the time to cure the noncompliance has expired;

5. Been convicted of a felony or any other crime involving fraud, dishonesty, deceit, or moral turpitude in connection with the agreement;

6. Impaired in a material way the trademark, trade name, or similar commercial symbol of the manufacturer, trade name, or similar commercial symbol;

7. Abandoned the business relating to the agreement for a period of not less than sixty (60) consecutive days;

8. Been adjudicated as bankrupt or has become insolvent and unable to pay debts as they become due;

9. Has, in the good faith judgment of the manufacturer, failed to adequately perform the dealer’s sales, marketing, or service functions under the agreement; or

10. Has, in the good faith judgment of the manufacturer, failed to keep or maintain proper facilities, equipment, or sales or service staff to adequately meet the needs of the manufacturer’s customers or to support the market for the manufacturer’s goods and services in the sales territory of the dealer.

B. Before any termination, cancellation, or failure to renew any license, dealership, franchise, or other agreement becomes effective, the manufacturer must first give the dealer not less than ninety (90) days’ prior written notice of the proposed termination or nonrenewal, where the notice states specifically the reasons for the proposed action and gives the dealer not less than forty-five (45) days to cure the claimed deficiency. If the manufacturer proposes to discontinue the manufacture of aircraft or other line of business authorized to be performed by the dealer, the manufacturer shall give the dealer not less than one hundred eighty (180) days’ prior notice of the effective date of the discontinuance.

Added by Laws 2004, c. 286, § 3, eff. Nov. 1, 2004. Amended by Laws 2005, c. 107, § 3, eff. Nov. 1, 2005; Laws 2008, c. 292, § 4, emerg. eff. June 2, 2008.