Change in ownership, notice required
If a boat or watercraft dealer wants to sell or transfer their business, they have to tell the manufacturer 90 days ahead of time. The manufacturer can only say no if they have a reasonable reason, like the new buyer has bad finances or a criminal record. If the manufacturer does not respond in writing within 60 days, the sale is automatically approved. Dealers also have the right to name a family member to take over the dealership if the dealer dies, retires, or becomes unable to work — the manufacturer can only block this for reasons like bad credit, a felony conviction, or lack of proper experience.
407.1366. Change in ownership, notice required. — 1. If a boat, marine, , or desires to make a change in its ownership by the sale of the business , stock , or otherwise, the dealer must give the ninety days' written notice prior to the closing including all as may be required by the manufacturer. The manufacturer shall not refuse to agree to such proposed change or sale and may not disapprove or withhold approval of such change or sale unless the manufacturer can show that its decision is based on the manufacturer's reasonable criteria, which may include but is not limited to the 's business , moral character, , and any criminal .
2. It is for any manufacturer to fail to provide a boat, marine, vessel, or personal watercraft dealer an opportunity to , in writing, a member of the dealer's family as a to the in the event of the death, , or retirement of the boat, marine, vessel, or personal watercraft dealer. It shall be unlawful to prevent or refuse to honor the to a dealership by a member of the family of the deceased, retired or dealer unless the manufacturer has provided to the dealer written notice of its objections. Grounds for objection shall be lack of , of a , lack of required licenses or business experience or other conditions which make such succession unreasonable under the circumstances, but the manufacturer shall bear the the unreasonableness of such succession. However, no member of the family may succeed to a boat, marine, vessel, or personal watercraft dealer if the succession to the boat, marine, vessel, or personal watercraft dealer involves, without the manufacturer's , a of the business or an alteration of the terms and conditions of the written agreement.
3. If the manufacturer rejects a proposed change or sale, the manufacturer shall give written notice of its reasons to the boat, marine, vessel, or personal watercraft dealer within sixty days after receipt of the dealer notification and complete documentation. If no such notice is given to the boat, marine, vessel, or personal watercraft dealer, the change or sale shall be approved.
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Source & history notes
(L. 2004 H.B. 1288)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.