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.
(Cite as: 9 V.S.A. § 4076)
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§ 4076. Transfer of business
(a) No supplier shall unreasonably withhold consent to the transfer of the interest of
any dealer, officer, member, or partner to any other party or parties. However, no
dealer, officer, member, or partner shall have the right to sell, transfer, or assign
the equipment dealership or power of management or control of the dealership without
the written consent of the supplier. Should a supplier determine that the designated
transferee does not meet its reasonable business ability, business experience, character
standards, and capitalization requirements, the supplier shall provide the dealer
with written notice of the supplier’s objection and specific reasons for withholding
consent. A supplier shall have 90 days to consider a dealer’s written request to make
such a transfer.
(b) No supplier shall unreasonably withhold consent to the transfer of the dealer’s interest
in the dealership to a member or members of the family of the dealer or the principal
owner of the dealership, if the family member meets the reasonable business ability,
business experience, and character standards of the supplier, and if the transferee
can demonstrate that the dealership will be adequately capitalized. Should a supplier
determine that the designated family member does not meet those requirements, the
supplier shall provide the dealer with written notice of the supplier’s objection
and specific reasons for withholding its consent. A supplier shall have 90 days to
consider a dealer’s written request to make a transfer to a family member. As used
in this subsection, “family” means and includes the spouse, parent, siblings, children,
stepchildren, and lineal descendants, including those by adoption of the dealer or
principal owner of the dealer.
(c) Notwithstanding subsection (b) of this section, in the event that a supplier and dealer
have duly executed an agreement concerning succession rights prior to the equipment
dealer’s death, and if the agreement has not been revoked or otherwise terminated
by either party, the agreement shall be observed.
(d) In any dispute arising under this section, the supplier shall have the burden of proving
a substantial and reasonable justification for the denial of consent. (Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)