A distributor shall not terminate, cancel, or refuse to renew a dealership with a dealer without first giving written notice by certified mail at least ninety days in advance of the effective date of such action as set forth in the notice. Notwithstanding any provision to the contrary contained in this section, a distributor may terminate, cancel, or refuse to renew a dealership with a dealer effective five days after the posting of written notice by certified mail to the dealer at the dealer’s last known address, if such action is based on any of the following reasons:

(1) Voluntary abandonment of the dealership relationship by the dealer;

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Terms Used In Hawaii Revised Statutes 481G-5

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Conviction: A judgement of guilt against a criminal defendant.
  • Dealer: means any person, corporation, partnership, association, association of dealers, or other form of business enterprise engaged in the business of selling products. See Hawaii Revised Statutes 481G-1
  • Dealership: means any agreement, written or verbal, between a distributor and a dealer under which the dealer is granted the right, for a definite or indefinite period of time, to sell products on behalf of a distributor to consumers and other end-users. See Hawaii Revised Statutes 481G-1
  • Distributor: means any person, corporation, partnership, or other form of business enterprise engaged in the sale, consignment, exchange, or any other form of transfer of a product which it manufactures, assembles, constructs, creates, or obtains in any manner from a manufacturer. See Hawaii Revised Statutes 481G-1
(2) Conviction of the dealer of a crime involving the business conducted pursuant to the dealership; or
(3) Adjudication of bankruptcy of the dealer, or the dealer becoming insolvent in the sense that the dealer cannot meet financial obligations when due.