Rhode Island § 6-54-2 - Rhode Island Dealership Preservation and Protection Act

§ 6-54-2. Definitions.

As used in this chapter:

(1) “Community of interest” means a continuing financial interest between the grantor and the grantee in either the operation of the dealership business or the marketing of such goods or services.

(2) “Continuing financial interest” means the following:

(i) A dealership relationship of at least one year in duration between the grantor and dealer, without regard to:

(A) Any minimum percentage of revenue or profit derived therefrom by the dealer;

(B) Any minimum financial investment by the dealer; or

(C) The aggregate economic size or level of activity by the dealer or its affiliates; and

(ii) The dealer has expended, allocated, or dedicated revenue or personnel to promoting the sale or distribution of the grantor’s goods or services, including investments in grantor inventory, sales and marketing, or facilities; and

(iii) Dealer and grantor cooperate, coordinate activities, or share common goals.

(3) “Dealer” means a person who is a grantee of a dealership situated in this state, and any successor in interest, regardless of the subsequent sale or change in ownership of such entity.

(4) “Dealership” means any of the following: A contract or agreement, either expressed or implied, whether oral or written, between two (2) or more persons, by which a person is granted the right to sell or distribute goods or services, or use a trade name, trademark, service mark, logotype, advertising, or other commercial symbol, in which there is a community of interest in the business of offering, selling, or distributing goods or services at wholesale, retail, by lease, agreement, or otherwise.

(5) “Good cause” means, for the purposes of this act, good cause for terminating, diminishing, canceling, or nonrenewal shall mean:

(i) The failure by the dealer to substantially comply with the reasonable requirements imposed by the grantor; or

(ii) Any of the reasons listed in § 6-54-4(a)(1) through (a)(6). A sale or change in ownership shall not constitute good cause.

(6) “Grantor” means a person who grants a dealership, and any successor in interest, regardless of the subsequent sale or change in ownership of such person.

(7) “Person” means a natural person, partnership, joint venture, corporation, or other entity.

(8) “Sale or change in ownership” means with respect to any grantor or dealer, the direct or indirect sale of such person’s assets or equity ownership, whether by merger or sale or other change in control event. A sale or change in ownership shall be considered for purposes of this chapter as a continuation of the prior dealership relationship and shall not be deemed to have interrupted, ended, or restarted such relationship between the parties.