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Section 63-17-113

§ 63-17-113. Modification of franchise agreement; good cause required for termination, cancellation or nonrenewal.

No person shall modify a franchise agreement during the term of such agreement or upon its renewal if the modification substantially and adversely affects the motor vehicle dealer's rights, obligations, investment, or return on investment without giving sixty (60) days' written notice of the proposed modification to the motor vehicle dealer and without showing good cause to the commission.

Notwithstanding any agreement, the following alone shall not constitute good cause for the termination, cancellation or nonrenewal of a franchise agreement: The fact that the new motor vehicle dealer owns, has an investment in, participates in the management of or holds a franchise agreement for the sale or service of another make or line of new motor vehicles, or that the new motor vehicle dealer has established another make or line of new motor vehicles or service in the same dealership facilities as the manufacturer or distributor prior to the effective date of this law, or is approved in writing by the manufacturer or distributor.

SOURCES: Laws, 2000, ch. 418, § 4, eff from and after July 1, 2000.