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ID S1313
Bill
Status
2/7/2014
Primary Sponsor
Commerce and Human Resources Committee
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AI Summary
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Prohibits suppliers from terminating, canceling, failing to renew, or substantially changing competitive circumstances of dealer agreements without good cause, clarifying that allowing an event by contract does not affect determinations of substantial competitive change.
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Requires suppliers to provide written notice at least 90 days before terminating, non-renewing, or substantially changing competitive circumstances of dealer agreements, with exceptions for certain urgent good cause situations.
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Allows dealers 90 days to cure claimed deficiencies after notice (except for paragraphs (a)-(d) good cause situations), and voids the notice if deficiencies are rectified within that period.
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Requires suppliers claiming inadequate market penetration to provide one year advance notice and make fair, reasonable efforts to assist dealers in meeting market penetration goals before terminating or substantially changing the agreement.
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Establishes "good cause" standards for supplier actions, including dealer bankruptcy, criminal conviction, business relocation without consent, inadequate representation, and material failure to comply with dealer agreement terms.
Legislative Description
Amends existing law relating to agreements between suppliers and dealers of farm equipment; to revise provisions relating to prohibited conduct by suppliers in regard to substantial changes in competitive circumstances of dealer agreements or dealer relationships with suppliers; to require suppliers to provide certain notice to dealers in the event of substantial changes in the competitive circumstances of dealer agreements or dealer relationships with suppliers; and to provide that suppliers may substantially change the competitive circumstances of dealer agreements or dealer relationships with suppliers after a specified period of time.
FARM EQUIPMENT
Last Action
Reported Printed; referred to Commerce & Human Resources
2/10/2014