HCS HB 1286 & 1175 -- MARINE DEALERS (Guest)

This substitute prohibits marine manufacturers from terminating
or renewing a dealership agreement or substantially changing the
competitive circumstances of a dealership without good cause.
The substitute specifies the circumstances that are considered
good cause.

Manufacturers will be required to provide a notice at least 90
days prior to any termination, cancellation, or nonrenewal of a
dealership agreement.  A dealer will have 90 days to cure any
claimed deficiency.  A dealer must provide notice of intent to
cure deficiencies within the 90-day period.  Termination will
take effect 60 days after the dealer's receipt of the
manufacturer's notice, unless the dealer has new inventory on
hand.  In that case, upon dealer request, it will take effect
upon the sale of the remaining inventory but no later than 90
days from the manufacturer's notice of termination.

Dealers may terminate a dealer agreement at any time by giving
written notice to the manufacturer at least 90 days prior to the
effective date of the termination.

On change of ownership, dealers must give a 90-day written notice
to the manufacturer.  Manufacturers cannot refuse a proposed
change or sale and may not disapprove or withhold approval unless
the manufacturer can show its decision is based on a reasonable
criterion such as business experience, moral character, financial
qualifications, or criminal record.  Manufacturers have 60 days
to provide written notice of rejection of a proposed change or
sale.  The transfer provisions do not apply to the transfer to a
successor in the event of a dealer's death.

The substitute provides for the repurchase of certain vessels
when the dealer agreement is terminated by the manufacturer.  It
also provides for legal action upon unlawful termination or
failure of renewal of a dealership.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am