Iowa Code 322F.5A – Transfer of dealership
Current as of: 2024 | Check for updates
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1. If a supplier has contractual authority to approve or deny a request for a sale or transfer of a dealer’s business or an equity ownership interest in the business, the supplier shall approve or deny the request within sixty days after receiving a written request from the dealer. If the supplier has not approved or denied the request within the sixty-day period, the request shall be deemed approved. The dealer’s request shall include reasonable financial information, personal background information, character references, and work histories for each acquiring person.
Terms Used In Iowa Code 322F.5A
- Days: means calendar days. See Iowa Code 322G.2
- dealership: means a person engaged in the retail sale of equipment. See Iowa Code 322F.1
- Person: includes any individual, firm, corporation, partnership, joint adventure, or association, and the plural as well as the singular number. See Iowa Code 321H.2
- Supplier: means the manufacturer, wholesaler, or distributor of equipment sold by a dealer. See Iowa Code 322F.1
2. If a supplier denies a request made pursuant to this section, the supplier shall provide the dealer with a written notice of the denial that states the reasons for the denial. A supplier may only deny a request based on the failure of a proposed transferee to meet the reasonable requirements consistently imposed by the supplier in determining whether to approve a transfer or a new dealership.