Nevada § 597.1143 - Dealer agreement: Termination, failure to renew or substantial change of terms for good cause

§ 597.1143. Dealer agreement: Termination, failure to renew or substantial change of terms for good cause

1. A supplier shall not terminate, fail to renew or substantially change the terms

of a dealer agreement without good cause. 2. Except as otherwise provided in this section, a supplier may terminate or refuse

to renew a dealer agreement for good cause if the supplier provides to the dealer

a written notice setting forth the reasons for the termination or nonrenewal of the

dealer agreement at least 180 days before the termination or nonrenewal of the dealer

agreement. 3. A supplier shall include in the written notice required by subsection 2 an explanation

of the deficiencies of the dealer and the manner in which those deficiencies must

be corrected. If the dealer corrects the deficiencies set forth in the notice within 60 days after

he or she receives the notice, the supplier shall not terminate or fail to renew the

dealer agreement for the reasons set forth in the notice. 4. A supplier shall not terminate or refuse to renew a dealer agreement based solely

on the failure of the dealer to comply with the requirements of the dealer agreement

concerning the share of the market the dealer was required to obtain unless the supplier

has, for not less than 1 year, provided assistance to the dealer in the dealer's effort

to obtain the required share of the market. 5. A supplier is not required to comply with the provisions of subsections 2 and 3

if the supplier terminates or refuses to renew a dealer agreement for any reason set

forth in paragraphs (b) to (i), inclusive, of subsection 6. 6. As used in this section, “ good cause ” means: (a) A dealer fails to comply with the terms of a dealer agreement, if the terms are

not substantially different from the terms required for other dealers in this State

or any other state; (b) A closeout or sale of a substantial part of the business assets of a dealer or

a commencement of the dissolution or liquidation of the business assets of the dealer; (c) A dealer changes its principal place of business or adds other places of business

without the prior approval of the supplier, which may not be unreasonably withheld; (d) A dealer substantially defaults under a chattel mortgage or other security agreement

between the dealer and the supplier; (e) A guarantee of a present or future obligation of a dealer to the supplier is revoked

or discontinued; (f) A dealer fails to operate in the normal course of business for at least 7 consecutive

days; (g) A dealer abandons the dealership; (h) A dealer pleads guilty or guilty but mentally ill to, or is convicted of, a felony

affecting the business relationship between the dealer and supplier; or (i) A dealer transfers a financial interest in the dealership, a person who has a

substantial financial interest in the ownership or control of the dealership dies

or withdraws from the dealership, or the financial interest of a partner or major

shareholder in the dealership is substantially reduced. For the purposes of this section, good cause does not exist if the supplier consents

to any action described in this section.