The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
001
:
GENERAL PROVISIONS
(Cite as: 7 V.S.A. § 707)
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§ 707. Sale or transfer; purchase by manufacturer
(a) A wholesale dealer wishing to sell or otherwise transfer its interests in a franchise
shall give at least 90 days’ written notice to the certificate of approval holder
or manufacturer, prior to the sale or transfer. The notice of intended sale or transfer
shall give the full name and address of the proposed transferee, along with full details
outlining the qualifications of the proposed transferee that, in the opinion of the
wholesale dealer, make the proposed transferee competent to operate the franchise.
(b) In the event the certificate of approval holder or manufacturer wishes to resist the
proposed sale or transfer to the proposed transferee, the certificate of approval
holder or manufacturer shall petition the Superior Court for a hearing not later than
60 days prior to the date of the proposed sale or transfer. The petition shall clearly
state the certificate of approval holder’s or manufacturer’s reasons for resisting
the proposed sale or transfer.
(c) Upon receipt of a petition brought resisting a sale or transfer, the Superior Court
shall hold a hearing on the proposed transfer or sale. The court shall make a full
inquiry into the qualifications of the proposed transferee and shall determine whether
or not the proposed transferee is in a position to substantially continue the operations
of the franchise, to assume the obligations of the franchise holder, and to conduct
the business in a manner that will protect the legitimate interests of the certificate
of approval holder or manufacturer.
(d) If the Superior Court finds the proposed transferee to be qualified to operate the
franchise, it shall approve the transfer of the franchise to the proposed transferee.
(e) The provisions of subsections (b) through (d) of this section shall not apply to the
sale or transfer of a franchise to the spouse, child, grandchild, sibling, parent,
foster child, child-in-law, sibling-in-law, niece, or nephew of the owner of the wholesale
dealer. (Added 1975, No. 199 (Adj. Sess.); amended 1983, No. 197 (Adj. Sess.), § 6; 2017, No. 83, § 127; 2017, No. 145 (Adj. Sess.), § 4, eff. Jan. 1, 2019; 2021, No. 105 (Adj. Sess.), § 152, eff. July 1, 2022.)