Vermont § 4076 - Transfer of business

§ 4076. Transfer of business

• (a) No supplier shall unreasonably withhold consent to the transfer of the interest of
  any dealer, officer, member, or partner to any other party or parties. However, no
  dealer, officer, member, or partner shall have the right to sell, transfer, or assign
  the equipment dealership or power of management or control of the dealership without
  the written consent of the supplier. Should a supplier determine that the designated
  transferee does not meet its reasonable business ability, business experience, character
  standards, and capitalization requirements, the supplier shall provide the dealer
  with written notice of the supplier’s objection and specific reasons for withholding
  consent. A supplier shall have 90 days to consider a dealer’s written request to make
  such a transfer. (b) No supplier shall unreasonably withhold consent to the transfer of the dealer’s interest
  in the dealership to a member or members of the family of the dealer or the principal
  owner of the dealership, if the family member meets the reasonable business ability,
  business experience, and character standards of the supplier, and if the transferee
  can demonstrate that the dealership will be adequately capitalized. Should a supplier
  determine that the designated family member does not meet those requirements, the
  supplier shall provide the dealer with written notice of the supplier’s objection
  and specific reasons for withholding its consent. A supplier shall have 90 days to
  consider a dealer’s written request to make a transfer to a family member. As used
  in this subsection, “family” means and includes the spouse, parent, siblings, children,
  stepchildren, and lineal descendants, including those by adoption of the dealer or
  principal owner of the dealer. (c) Notwithstanding subsection (b) of this section, in the event that a supplier and dealer
  have duly executed an agreement concerning succession rights prior to the equipment
  dealer’s death, and if the agreement has not been revoked or otherwise terminated
  by either party, the agreement shall be observed. (d) In any dispute arising under this section, the supplier shall have the burden of proving
  a substantial and reasonable justification for the denial of consent. (Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)