MI SB1037

Suppliers cannot terminate, cancel, fail to renew, or substantially change agreements with dealers without good cause, and must provide at least 90 days' prior written notice.

Notice must state specific reasons or deficiencies, and dealers have 90 days to submit an acceptable corrective plan or remedy the deficiencies before termination takes effect.

Notice requirements do not apply if termination is for insolvency, bankruptcy, assignment for benefit of creditors, material misrepresentation, or falsification of records; for nonpayment, dealers receive 10 days to remedy after written notice of default.

Suppliers are liable for damages caused by breach of the notice and good cause requirements.

Sale or transfer of dealership ownership to immediate family members is not good cause for termination or substantial changes to agreement terms, including transfers by sole proprietors, majority stockholders, or partners.