South Carolina Code 56-14-90. Termination, cancellation, or failure to renew a manufacturer/dealer agreement; good cause; notice
(B) The manufacturer has the burden of showing good cause for terminating, canceling, or failing to renew a manufacturer/dealer agreement with a dealer.
Terms Used In South Carolina Code 56-14-90
- Area of sales responsibility: means the geographical area, agreed to by the dealer and the manufacturer in the manufacturer/dealer agreement, within which area the dealer has the exclusive right to display or sell the manufacturer's new recreational vehicles of a particular line make to the retail public. See South Carolina Code 56-14-10
- 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.
- Dealer: means any person, firm, corporation, or business entity licensed or required to be licensed under this chapter to sell new recreational vehicles to the retail public. See South Carolina Code 56-14-10
- Department: means the South Carolina Department of Motor Vehicles. See South Carolina Code 56-14-10
- Manufacturer: means any person, firm, corporation, or business entity that engages in the manufacturing of recreational vehicles. See South Carolina Code 56-14-10
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
- Recreational vehicle: means a motorhome, travel trailer, fifth-wheel trailer, or folding camping trailer designed to provide temporary living quarters for recreational, camping, or travel use, as defined herein. See South Carolina Code 56-14-10
(C) For purposes of determining whether there is good cause for the proposed action, any of the following factors may be considered:
(1) the extent of the affected dealer’s penetration in the area of sales responsibility;
(2) the nature and extent of the dealer’s investment in its business;
(3) the adequacy of the dealer’s service facilities, equipment, parts, supplies, and personnel;
(4) the effect of the proposed action on the community;
(5) the extent and quality of the dealer’s service under recreational vehicle warranties;
(6) the dealer’s failure to follow agreed upon procedures or standards related to the overall operation of the dealership; and
(7) the dealer’s performance under the terms of its manufacturer/dealer agreement.
(D) Except as otherwise provided in this section, a manufacturer or distributor shall provide a dealer with at least ninety days prior written notice of termination, cancellation, or nonrenewal of the manufacturer/dealer agreement.
(1) The notice must state all reasons for the proposed termination, cancellation, or nonrenewal and must further state that if, within thirty days following receipt of the notice, the dealer provides to the manufacturer a written notice of intent to cure all claimed deficiencies, the dealer will then have ninety days following receipt of the original notice to rectify the deficiencies.
(2) If the deficiencies are rectified within ninety days, the manufacturer’s notice is voided. If the dealer fails to provide the notice of intent to cure the deficiencies or fails to cure the deficiencies in the prescribed time period, the termination, cancellation, or nonrenewal takes effect as provided in the original notice.
(3) The notice period may be reduced to thirty days if the manufacturer’s grounds for termination, cancellation, or nonrenewal are due to any of the following good cause factors:
(a) a dealer or one of its owners being convicted of, or entering a plea of nolo contendere to, a felony;
(b) the abandonment or closing of the business operations of the dealer for ten consecutive business days unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the dealer has no control;
(c) a significant misrepresentation by the dealer materially affecting the business relationship;
(d) a suspension or revocation of the dealer’s license, or refusal to renew the dealer’s license, by the department; or
(e) a material violation of this chapter which is not cured within thirty days after the written notice by the manufacturer.
(4) The notice provisions contained in this subsection do not apply if the reason for termination, cancellation, or nonrenewal is the dealer’s insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy.