The Vermont Statutes Online

Title 9 : Commerce and Trade

Chapter 108 : Motor Vehicle Manufacturers, Distributors, and Dealers Franchising

• § 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.)