Manufacturer, wholesaler or distributor not to terminate contract except for good cause
A company that makes or sells outdoor power equipment (like lawn mowers) cannot end a contract with a local dealer without a good reason. A good reason means the dealer failed to follow important and fair rules in the contract. There are also specific situations that count as good reason, like the dealer going bankrupt, closing down, moving locations without permission, being convicted of a felony, or not selling enough products compared to similar dealers in other areas.
407.895. , or not to terminate contract except for — good cause established, how. — Any manufacturer, wholesaler or distributor of outdoor power equipment used for lawn, garden, golf course, landscaping or grounds , and therefor, who enters into a written or with any person, firm, or engaged in the business of selling and repairing outdoor power equipment used for lawn, garden, golf course, landscaping or grounds maintenance and repair parts therefor, whereby such agrees to maintain a stock of parts or complete or whole machines or attachments, shall not terminate, cancel, or fail to renew any such contract without good cause. "Good cause" means failure by the retailer to substantially comply with essential and reasonable requirements imposed upon the retailer by the contract if such requirements are not different from those requirements imposed on other retailers either by their terms or in the manner of their . In addition, good cause shall exist whenever:
(1) The retailer has transferred an interest in the retailer business without the manufacturer's, wholesaler's or distributor's written , or there has been a withdrawal from the retailer's business of an , partner, , or the manager of the retailer's business, or there has been a substantial reduction in interest of a partner or major stockholder without the written consent of the manufacturer, wholesaler, or distributor;
(2) The retailer 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 retailer's related to the retailer's business or there has been a or or of the retailer's business;
(3) There has been a change, without the prior written approval of the manufacturer, wholesaler, or distributor, in the location of the retailer's under the retailer's agreement with the manufacturer, wholesaler, or distributor;
(4) The retailer has defaulted under any or other between the retailer and the manufacturer, wholesaler, or distributor, or there has been a or discontinuance of any guarantee of the retailer's present or future obligations to the manufacturer, wholesaler, or distributor;
(5) The retailer has failed to operate in the normal course of business for seven days or has otherwise his business, except for reasonable and customary closures of business;
(6) The retailer has guilty to or has been of a affecting the relationship between the retailer and the manufacturer, wholesaler, or distributor;
(7) The retailer has engaged in conduct which is injurious or to the retailer's customers or the public welfare;
(8) The retailer has consistently failed to meet the manufacturer's, wholesaler's or distributor's requirements for reasonable based on the manufacturer's, wholesaler's, or distributor's in other marketing areas.
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Source & history notes
(L. 1989 S.B. 41 § 4)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.