Notice of Intent to Amend, Terminate, Cancel, or Decline to Renew Agreement; Time Within Which Dealer May Rectify Condition; Contract for Transfer of Business; Immediate Termination, Amendment, Cancellation or Expiration

  1. Law
  2. Georgia Code
  3. Commerce and Trade
  4. Selling and Other Trade Practices
  5. Multiline Heavy Equipment Dealers
  6. Notice of Intent to Amend, Terminate, Cancel, or Decline to Renew Agreement; Time Within Which Dealer May Rectify Condition; Contract for Transfer of Business; Immediate Termination, Amendment, Cancellation or Expiration

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  1. Except as provided in subsection (d) of this Code section, a supplier shall provide a multiline dealer at least 120 days' prior written notice of any intention to amend, terminate, cancel, or decline to renew any agreement.The notice shall state all the reasons for the intended amendment, termination, cancellation, or nonrenewal.
  2. Where such reason or reasons relate to a condition or conditions which may be rectified by action of the multiline dealer, he shall have 75 days in which to take such action and, within such 75 day period, shall give written notice to the supplier if and when such action is taken.If such condition or conditions have been rectified by action of the multiline dealer, then the proposed amendment, termination, cancellation, or nonrenewal shall be void and without legal effect.However, where the supplier contends that action on the part of the multiline dealer has not rectified one or more of such conditions, such supplier must give written notice thereof to the multiline dealer within 15 days after the dealer gave notice to the supplier of the action taken.
  3. During the 120 day notice period provided for in subsection (a) of this Code section, the multiline dealer shall have the right to contract for a transfer of his or her business to another person who meets the material and reasonable qualifications and standards required by the supplier of its multiline dealers.The multiline dealer shall give notice of any such transfer to the supplier at least 45 days prior to the expiration of the 120 day notice period.
  4. An agreement may be immediately terminated, amended, canceled, or allowed to expire and no notice shall be required if the reason for the amendment, termination, cancellation, or nonrenewal is:
    1. The bankruptcy or receivership of the multiline dealer;
    2. An assignment for the benefit of the creditors or similar disposition of the assets of the business, 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;
    3. Willful or intentional misrepresentation made by the multiline dealer with the express intent to defraud the supplier;
    4. Failure of the multiline dealer to conduct its customary sales and service operations during its customary business hours for seven consecutive business days, unless such failure has resulted from acts of God, casualties, strikes, or other similar circumstances beyond the multiline dealer's reasonable control;
    5. Failure to pay any undisputed amount due the supplier continuing for 30 days after written notice thereof; or
    6. A final conviction of the multiline dealer of a felony.

(Code 1981, §10-1-733, enacted by Ga. L. 1993, p. 1585, § 3.)


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