Unilateral Amendment, Cancellation, Termination, Refusal to Renew, or Causing Resignation From Agreement for Good Cause

1. Law
2. Georgia Code
3. Commerce and Trade
4. Selling and Other Trade Practices
5. Multiline Heavy Equipment Dealers
6. Unilateral Amendment, Cancellation, Termination, Refusal to Renew, or Causing Resignation From Agreement for Good Cause

1. Notwithstanding the terms, provisions, or conditions of any agreement, no supplier shall unilaterally amend, cancel, terminate, or refuse to continue to renew any agreement, or unilaterally cause a dealer to resign from an agreement, unless the supplier has first complied with the provisions of this article and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuance, or causing a resignation.The term "good cause" shall not include the sale or purchase of a supplier.The term "good cause" shall be limited to withdrawal by the supplier, its successors, and assigns of the sale of its products in Georgia or multiline dealer performance deficiencies including, but not limited to, the following:
   1. Bankruptcy or receivership of the multiline dealer;
   2. Assignment for the benefit of creditors or similar disposition of the assets of the dealer, other than the creation of a security interest in the assets of a multiline dealer for the purpose of securing financing in the ordinary course of business; or
   3. 1. Failure by the multiline dealer to comply substantially, without reasonable cause or justification, with any reasonable and material requirement imposed upon such dealer in writing by the supplier, including, but not limited to, a substantial failure by a multiline dealer to:
         1. Maintain a sales volume or trend of his supplier's product line or lines comparable to that of other similarly situated dealers of that product line; or
         2. Render services comparable in quality, quantity, or volume to the services rendered by other dealers of the same product or product line similarly situated.
      2. In any determination as to whether a multiline dealer has failed to comply substantially, without reasonable excuse or justification, with any reasonable and material requirement imposed upon such dealer by the supplier, consideration shall be given to the relative size, population, geographical location, number of retail outlets, and demand for the products applicable to the market area of the multiline dealer in question and to comparable market area.
2. No supplier shall be required to give notice or show good cause pursuant to subsection (a) of this Code section to amend unilaterally agreements with multiline dealers to comply with federal or state law or, where not inconsistent with this article, to amend uniformly agreements as to all multiline dealers of the supplier in question in all states in which the supplier is marketing its products.
3. In any dispute as to whether a supplier has acted with good cause as required by this Code section, the supplier shall have the burden of proof to establish that good cause existed.

(Code 1981, §10-1-732, enacted by Ga. L. 1993, p. 1585, § 3.)

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