Dealership agreement, termination
A farm equipment company cannot end or change a dealer's contract without a good reason. Good cause means the dealer did not follow the important and fair rules in their contract — the same rules other dealers have to follow. There are also specific situations that count as good cause, like the dealer going bankrupt, moving locations without permission, being convicted of a felony, or consistently failing to sell enough equipment compared to similar areas.
407.840. , — — failure to renew to be based on — good cause defined. — No farm equipment , directly or through any officer, or employee may terminate, cancel or fail to renew a dealership agreement or substantially change the competitive circumstances of a farm equipment without good cause. Good cause means failure by a farm equipment to substantially comply with essential and reasonable requirements imposed upon the dealer by the dealership agreement if such requirements are not different from those requirements imposed on other dealers either by their terms or in the manner of their . In addition, good cause shall exist whenever:
(1) The farm equipment dealer has transferred an interest in the farm equipment dealership without the manufacturer's written , or there has been a withdrawal from the dealership of an , partner, , or the manager of the dealership, or there has been a substantial reduction in interest of a partner or major stockholder without the written consent of the manufacturer;
(2) The farm equipment dealer has filed a or has had an filed against it which has not been within thirty days after the , or there has been a or sale of a substantial part of the dealer's related to the farm equipment dealership or there has been a or or of the farm equipment dealership;
(3) There has been a change, without the prior written approval of the manufacturer, in the location of the dealer's under the dealership agreement;
(4) The farm equipment dealer has defaulted under any or other between the dealer and the farm equipment manufacturer, or there has been a or discontinuance of any guarantee of the dealer's present or future obligations to the farm equipment manufacturer;
(5) The farm equipment dealer has failed to operate in the normal course of business for seven days or has otherwise his* business;
(6) The farm equipment dealer has guilty to or has been of a affecting the relationship between the dealer and manufacturer;
(7) The dealer has engaged in conduct which is injurious or to the dealer's customers or to the public welfare;
(8) The farm equipment dealer has consistently failed to meet the manufacturer's requirements for reasonable based on the manufacturer's in other marketing areas.
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Source & history notes
(L. 1987 S.B. 35) *Word "its" appears in original rolls.
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.