Vermont Statutes Title 9 Sec. 4090
Terms Used In Vermont Statutes Title 9 Sec. 4090
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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.
- Distributor: means any person, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers or who maintains factory representatives or who controls any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers. See
- Franchise: means all agreements and contracts between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that relate to the operation of the franchise and purport to fix the legal rights and liabilities of the parties to such agreements or contracts, including agreements pursuant to which the dealer purchases and resells the franchise product, performs warranty and other service on the manufacturer's products, leases or rents the dealership premises or agreements concerning the dealership premises, or construction or renovation of the dealership premises. See
- Manufacturer: means any person, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of motor vehicles, or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, that is controlled by the manufacturer. See
- Motor vehicle: means every vehicle intended primarily for use and operation on the public highways that is self-propelled, not including farm tractors and other machines and tools used in the production, harvesting, and care of farm products. See
- New motor vehicle: means a vehicle that has been sold to a new motor vehicle dealer and that has not been used for other than demonstration purposes and on which the original title has not been issued from the new motor vehicle dealer. See
- New motor vehicle dealer: means any person who holds, or held at the time a cause of action under this chapter accrued, a valid sales and service agreement, franchise, or contract granted by the manufacturer or distributor for the retail sale of the manufacturer's or distributor's new motor vehicles, is not affiliated by ownership or control with a franchisor, and is engaged in the business of any of the following with respect to new motor vehicles or the parts and accessories for those new motor vehicles:
- Owner: means any person holding an ownership interest in the business entity operating as a new motor vehicle dealer or under a franchise as defined in this chapter either as a corporation, partnership, sole proprietorship, or other legal entity. See
§ 4090. Notification of termination; cancellation and nonrenewal
(a) Notwithstanding the terms, provisions, or conditions of any franchise prior to the termination, cancellation, or nonrenewal of any franchise, the manufacturer shall furnish notification of such termination, cancellation, or nonrenewal to the new motor vehicle dealer as follows:
(1) in the manner described in subsection (b) of this section; and
(2) not less than 90 days prior to the effective date of such termination, cancellation, or nonrenewal, except as follows:
(A) not less than 15 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:
(i) insolvency of the new motor vehicle dealer, or filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law;
(ii) failure of the new motor vehicle dealer to conduct its customary sales and service operations during its customary business hours for seven consecutive business days, except for acts of God or circumstances beyond the direct control of the new motor vehicle dealer;
(iii) conviction of the new motor vehicle dealer, or any owner or operator thereof, of any crime that is punishable by imprisonment; or
(iv) revocation of any license that the new motor vehicle dealer is required to have to operate a dealership;
(B) not less than 180 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:
(i) any change in ownership, operation, or control of all or any part of the business of the manufacturer, whether by sale or transfer of assets, corporate stock, or other equity interest, assignment, merger, consolidation, combination, joint venture, redemption, operation of law, or otherwise;
(ii) the termination, suspension, or cessation of a part or all of the business operations of the manufacturer; or
(iii) discontinuance of the sale of the product line or a change in distribution system by the manufacturer, whether through a change in distributors or through the manufacturer’s decision to cease conducting business through a distributor altogether;
(3) not less than 15 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:
(A) insolvency of the new motor vehicle dealer, or filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law;
(B) failure of the new motor vehicle dealer to conduct its customary sales and service operations during its customary business hours for seven consecutive business days, except for acts of God or circumstances beyond the direct control of the new motor vehicle dealer;
(C) conviction of the new motor vehicle dealer, or any owner or operator thereof, of any crime that is punishable by imprisonment; or
(D) revocation of any license that the new motor vehicle dealer is required to have to operate a dealership;
(4) not less than 180 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:
(A) any change in ownership, operation, or control of all or any part of the business of the manufacturer, whether by sale or transfer of assets, corporate stock, or other equity interest, assignment, merger, consolidation, combination, joint venture, redemption, operation of law, or otherwise;
(B) the termination, suspension, or cessation of a part or all of the business operations of the manufacturer; or
(C) discontinuance of the sale of the product line or a change in distribution system by the manufacturer, whether through a change in distributors or through the manufacturer’s decision to cease conducting business through a distributor altogether.
(b) Notification under this section shall be in writing; shall be by certified mail or personally delivered to the new motor vehicle dealer; and shall contain:
(1) a statement of intention to terminate, cancel, or not to renew the franchise;
(2) a statement of the reasons for the termination, cancellation, or nonrenewal; and
(3) the date on which the termination, cancellation, or nonrenewal takes effect. (Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 20, § 37.)