Oklahoma § 15-245A.1 - Good cause

§ 15-245A.1. Good cause

A. The dealer must give the supplier at least thirty (30) days’

prior written notice of termination. No supplier may terminate a

dealer agreement without good cause. Except as otherwise

specifically provided in the Fair Practices of Equipment

Manufacturers, Distributors, Wholesalers and Dealers Act, “good

cause” means the failure by a dealer to substantially comply with

essential and reasonable requirements imposed upon the dealer by the

dealer agreement, provided such requirements are not different from

those requirements imposed on other similarly situated dealers

either by their terms or in the manner of their enforcement. In

addition, good cause shall exist whenever:

1. The dealer or dealership has transferred a controlling

ownership interest in its business without the supplier’s consent

unless the supplier does not have the right to withhold consent

under either the dealer agreement or under the terms of this act;

2. The dealer has filed a voluntary petition in bankruptcy or

has had an involuntary petition in bankruptcy filed against it which

has not been discharged within thirty (30) days after the filing, or

there has been a closeout or sale of a substantial part of the

dealer’s assets related to the business, or there has been a

commencement of dissolution or liquidation of the dealer;

3. There has been a deletion, addition or change in dealer or

dealership locations without the prior written approval of the

supplier;

4. The dealer has defaulted under any chattel mortgage or other

security agreement between the dealer and the supplier, or there has

been a revocation of any guarantee of the dealer’s present or future

obligations to the supplier; provided, however, good cause will not

Oklahoma Statutes - Title 15. Contracts

exist if a person revokes any guarantee in connection with or

following the transfer of such person’s entire ownership interest in

the dealer unless the supplier requires the person to execute a new

guarantee of the dealer’s present or future obligations in

connection with the transfer of ownership interest;

5. The dealer has failed to operate in the normal course of

business for seven (7) consecutive days or has otherwise abandoned

its business;

6. The dealer has pleaded guilty to or has been convicted of a

felony affecting the relationship between the dealer and supplier;

7. The dealer has engaged in conduct which is injurious or

detrimental to the dealer’s customers or to the public welfare or

the representation or reputation of the supplier’s product; or

8. The dealer has consistently failed to meet and maintain the

supplier’s requirements for reasonable standards and performance

objectives, so long as the supplier has given the dealer reasonable

standards and performance objectives that are based on the

manufacturer’s experience in other comparable market areas.

B. The provisions of this section will not apply to single-line

dealer agreements.

Added by Laws 2011, c. 156, § 5, eff. Nov. 1, 2011. Amended by Laws

2025, c. 12, § 3, eff. Nov. 1, 2025.