Connecticut General Statutes|Sec. 42-346. Termination of dealer agreement by supplier or dealer.

                                                

Sec. 42-346. Termination of dealer agreement by supplier or dealer. (a) Notwithstanding any contrary provision of any agreement entered into on or after January 1, 1998, prior to the termination of a dealer agreement, a supplier shall notify the dealer of such termination not less than one hundred twenty days prior to the effective date of such termination. No supplier may terminate a dealer agreement without cause. For purposes of this subsection “cause” means the failure of a dealer to comply with any requirements imposed upon the dealer by a dealer agreement, provided such requirements are not substantially different from requirements imposed by agreement upon other similarly situated dealers in this state in the normal course of business.


(b) A supplier may immediately terminate a dealer agreement at any time upon the occurrence of any of the following events:


(1) The filing of a petition for bankruptcy or for receivership either by or against the dealer;


(2) The making by the dealer to the supplier of an intentional and material misrepresentation as to the dealer's financial status;


(3) Any default by the dealer under a chattel mortgage or other security agreement between the dealer and the supplier;


(4) The commencement of voluntary or involuntary dissolution or liquidation of the dealer if the dealer is a partnership or corporation;


(5) A change in the location of the dealer's principal place of business as set forth in the dealer agreement without the prior written approval of the supplier, if required by the dealer agreement; or


(6) Withdrawal of an individual proprietor, partner or major shareholder of the dealer, the involuntary termination of a key manager of the dealer, or a substantial reduction in the interest of a partner or major shareholder of the dealer without the prior written consent of the supplier, if required by the dealer agreement.


(c) Unless there is an agreement to the contrary, a dealer that intends to terminate a dealer agreement with a supplier shall notify the supplier of such intent not less than one hundred twenty days prior to the effective date of the termination.


(d) Any notice required to be given under this section by either party to a dealer agreement shall be in writing, shall be made by certified mail or by personal delivery and shall contain, at a minimum:


(1) A statement of intention to terminate the dealer agreement;


(2) A statement of the reasons for such termination; and


(3) The date on which such termination shall become effective.


(P.A. 97-179, S. 2.)


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