Sec. 42-350. Supplier's consent to transfer of dealer's business, stock or other interest.
Sec. 42-350. Supplier's consent to transfer of dealer's business, stock or other
interest. (a) Except as provided in subsection (b) of this section, no supplier shall unreasonably withhold or delay consent to any transfer of a dealer's business or transfer of
the stock or other interest in a dealer whenever such consent is required pursuant to a
dealer agreement and the proposed transferee meets the material and reasonable business
and financial requirements of the supplier. If the supplier determines that a proposed
transferee does not meet such requirements, the supplier shall give the dealer written
notice stating the specific reasons for withholding consent not later than ninety days
after the date of the dealer's request for consent. No such proposed transferee may be
disqualified by the supplier from being a dealer solely because the proposed transferee
is a publicly held corporation.
(b) No supplier shall unreasonably withhold or delay consent to any transfer of a
dealer's business to a member or members of the family of the dealer or the principal
owner of the dealer if (1) such consent is required pursuant to a dealer agreement, (2) such
family member meets the reasonable business qualifications, experience and character
standards of the supplier, and (3) such family member demonstrates to the supplier
that such business will be or will continue to be adequately capitalized. If the supplier
determines that any such family member does not meet such requirements, the supplier
shall give the dealer written notice stating the specific reasons for withholding consent
not later than ninety days after the date of the dealer's request for consent. As used in
this subsection, "family" means the spouse, parent, siblings, children, stepchildren and
lineal descendants, including those by adoption, of the dealer or principal owner of the
dealer.
(c) In any dispute as to whether a supplier has unreasonably withheld consent under
this section, the supplier shall have the burden of proving a substantial and reasonable
justification for such withholding of consent.
(P.A. 97-179, S. 6.)