482.36397 - Death of dealer: Notice of assumption and commencement of operation of franchise by designated successor; deposit by dealer; arrangements for discharge of terms of franchise agreement for
482.36397 Death of dealer: Notice of assumption and commencement of operation of franchise by designated successor; deposit by dealer; arrangements for discharge of terms of franchise agreement for period after death.
1. Within 21 days after the death of a dealer, a designated successor in interest must notify the manufacturer or distributor in writing of his or her decision to assume and operate the franchise, and commence operation under the franchise within 10 days after it has been assumed. The notification must contain all information reasonably requested by the manufacturer or distributor regarding the successor’s business experience and financial condition. If an alternate successor in interest desires to assume the franchise upon the decision of the primary successor in interest not to do so, the alternate successor must comply with all requirements of this subsection, giving notice within 21 days after the primary successor’s decision.
2. A manufacturer or distributor may require a dealer who designates a successor in interest to deposit with the manufacturer or distributor at the time of the designation a sum reasonably determined to compensate the manufacturer or distributor under the terms of the franchise agreement if a designated successor in interest fails to assume the franchise within 21 days after the death of the dealer. If the franchise is assumed within 21 days or the franchise is temporarily operated by the manufacturer or distributor within that period, any unearned portion of the deposit must be refunded to the estate or legal representative of the deceased dealer.
3. In addition, the manufacturer or distributor may require a dealer who designates a successor in interest to arrange for the discharge of certain terms of the franchise agreement for a period of not more than 21 days after the dealer’s death, but the manufacturer or distributor may not require the business under the franchise to remain open to the public during that period.
(Added to NRS by 1985, 1830)