§ 6-46-7 - Transfer of business.
SECTION 6-46-7
§ 6-46-7 Transfer of business. – (a) No supplier shall unreasonably withhold or delay consent to any transfer ofthe dealer's business or transfer of the stock or other interest in thedealership, whenever the dealer to be substituted meets the material andreasonable business and financial requirements of the supplier. Should asupplier determine that a proposed transferee does not meet these requirements,it shall give the dealer written notice stating the specific reasons forwithholding consent. No prospective transferee may be disqualified to be adealer because it is a publicly held corporation. A supplier shall have ninety(90) days to consider a dealer's request to make a transfer under thissubsection.
(b) No supplier shall unreasonably withhold consent to thetransfer of the dealer's business to a member or members of the family of thedealer or the principal owner of the dealership, if the family member meets thereasonable business ability, business experience, and character standards ofthe supplier, and if the transferee can demonstrate that the dealership will beadequately capitalized. Should a supplier determine that the designated familymember does not meet those requirements, the supplier shall provide the dealerwith written notice of the supplier's objection and specific reasons forwithholding its consent. As used in this subsection, "family" means andincludes the spouse, parent, siblings, children, stepchildren, and linealdescendants, including those by adoption of the dealer or principal owner ofthe dealership.
(c) In any dispute as to whether a supplier has deniedconsent in violation of this section, the supplier shall have the burden ofproving a substantial and reasonable justification for the denial of consent.