Indiana § 9-32-19-21 - Termination, cancellation, or refusal to renew all or part of a recreational vehicle dealer agreement by a manufacturer or distributor; good cause

§ 9-32-19-21. Termination, cancellation, or refusal to renew all or part of a recreational vehicle dealer agreement by a manufacturer or distributor; good cause

Sec. 21. (a) A recreational vehicle manufacturer or recreational vehicle distributor may not terminate, cancel, or refuse to renew all or part of a recreational vehicle dealer agreement without good cause.

(b) The burden of proof to show good cause is on the recreational vehicle manufacturer or recreational vehicle distributor that is a party to the recreational vehicle dealer agreement.

(c) The following factors may be considered as proof to show good cause under this section:

(1) The extent of the recreational vehicle dealer's permeation into the area of sales responsibility.

(2) The nature and extent of the recreational vehicle dealer's investment in the recreational vehicle dealer's business.

(3) The adequacy of the recreational vehicle dealer's service facilities, equipment, parts, supplies, and personnel.

(4) The effect of the proposed termination, cancellation, or refusal to renew the recreational vehicle dealer agreement on the community.

(5) The extent and quality of the recreational vehicle dealer's warranty services.

(6) The recreational vehicle dealer's failure to follow agreed upon procedures and standards for the overall operation of the recreational vehicle dealer consistent with Indiana law and the recreational vehicle dealer agreement.

(7) The recreational vehicle dealer's performance of the terms of the recreational vehicle dealer agreement.

(d) Except as otherwise provided in this chapter, a recreational vehicle manufacturer or recreational vehicle distributor shall provide written notice to a recreational vehicle dealer at least one hundred twenty (120) days before the recreational vehicle manufacturer or recreational vehicle distributor terminates, cancels, or refuses to renew a recreational vehicle dealer agreement for good cause.

(e) A written notice under subsection (d) must provide the recreational vehicle dealer with all of the reasons the recreational vehicle manufacturer or recreational vehicle distributor intends to terminate, cancel, or refuse to renew the recreational vehicle dealer agreement.

(f) Not later than thirty (30) days after receiving the written notice under subsection (d), if the recreational vehicle dealer provides the recreational vehicle manufacturer or recreational vehicle distributor with written notice of the intent to cure all claimed deficiencies, the recreational vehicle dealer must cure the claimed deficiencies not later than one hundred twenty (120) days after receiving the written notice.

(g) If the recreational vehicle dealer cures the claimed deficiencies under subsection (f), the recreational vehicle manufacturer or recreational vehicle distributor may not terminate, cancel, or refuse to renew the recreational vehicle dealer agreement.

(h) The recreational vehicle manufacturer or recreational vehicle distributor may terminate, cancel, or refuse to renew the recreational vehicle dealer agreement:

(1) thirty (30) days after receipt of the written notice under subsection (d), if the recreational vehicle dealer fails to provide the recreational vehicle manufacturer or recreational vehicle distributor with written notice of the recreational vehicle dealer's intent to cure the claimed deficiencies; or

(2) one hundred twenty (120) days after receipt of the written notice under subsection (d), if the recreational vehicle dealer fails to cure the claimed deficiencies not later than one hundred twenty (120) days after receiving the written notice.

(i) The written notice period under subsection (d) may be reduced to thirty (30) days if the reason for terminating, canceling, or refusing to renew the recreational vehicle dealer agreement under this section is because of one (1) or more of the following factors:

(1) A recreational vehicle dealer is:

(A) convicted of; or

(B) entering a plea of nolo contendere to;

a felony offense.

(2) The recreational vehicle dealer has abandoned or closed business operations for at least ten (10) consecutive business days, unless the abandonment or closure is due to:

(A) an act of God;

(B) a strike;

(C) labor difficulty; or

(D) a cause that is outside of the control of the recreational vehicle dealer.

(3) A significant misrepresentation by the recreational vehicle dealer was made that materially affects the business relationship between the recreational vehicle dealer and the recreational vehicle manufacturer or recreational vehicle distributor.

(4) The secretary has suspended, revoked, or refused to renew the license of the recreational vehicle dealer.

(j) The written notice provisions under this section do not apply if the reason for terminating, canceling, or refusing to renew the recreational vehicle dealer agreement is a declaration of:

(1) insolvency;

(2) an assignment for the benefit of a creditor; or

(3) bankruptcy;

of the recreational vehicle dealer.

As added by P.L.42-2025, SEC.40.