New Jersey § 56:10-30

§ 56:10-30.

a. Upon timely institution of an action or alternate dispute resolution proceeding

to enjoin the termination of a motor vehicle franchise on the ground that such termination

would be in violation of the “Franchise Practices Act,” P.L.1971, c. 356 ( C.56:10-1 et seq. ), the termination shall be automatically stayed pending the final disposition of

such action or proceeding, and the motor vehicle franchisor shall accord the motor

vehicle franchisee all rights and privileges of a franchisee as if notice of termination

had not been given. b. A successful motor vehicle franchisee in an action or alternate dispute resolution

proceeding to enjoin the termination of a motor vehicle franchise shall be entitled

to an injunction barring termination of the motor vehicle franchise in addition to

any other relief provided for in section 10 of P.L.1971, c. 356 ( C.56:10-10 ). c. In any action or alternate dispute resolution proceeding with respect to the termination

of a motor vehicle franchise, the motor vehicle franchisor shall have the burden of

proving that termination of the motor vehicle franchise does not violate section 5

of P.L.1971, c. 356 ( C.56:10-5 ). In proving good cause for termination in any such action, the motor vehicle franchisor

shall be limited to the grounds for termination set forth in the written notice provided

for in section 5 of P.L.1971, c. 356 ( C.56:10-5 ). d. Notwithstanding the giving of notice of termination of a motor vehicle franchise

pursuant to section 5 of P.L.1971, c. 356 ( C.56:10-5 ), at any time prior to the date on which the termination becomes effective, the motor

vehicle franchisee may enter into an agreement for, and submit to the motor vehicle

franchisor, notice of the transfer, assignment or sale of the motor vehicle franchise

to another person. Thereupon, the motor vehicle franchisor shall proceed as provided for in section

6 of P.L.1971, c. 356 ( C.56:10-6 ). Upon approval of the transfer, assignment or sale by the motor vehicle franchisor

and upon consummation of same, the notice of termination of the motor vehicle franchise

shall be deemed withdrawn, and the transferee shall receive the motor vehicle franchise

free and clear of all grounds for termination. Notwithstanding the terms of any notice, any court order or any other provision

of law, a motor vehicle franchise termination shall not become effective while a notice

of transfer, assignment or sale is pending with a motor vehicle franchisor.