TITLE 6
Commercial Law – General Regulatory Provisions

CHAPTER 6-54
General Regulatory Provisions The Rhode Island Dealership Preservation And Protection Act

SECTION 6-54-4


§ 6-54-4 Notice of termination or change in dealership.

(a) Notwithstanding the terms, provisions, or conditions of any agreement to the contrary, a grantor shall provide a dealer sixty (60) days prior written notice of termination, cancellation, or nonrenewal. The notice shall state all reasons for termination, cancellation or nonrenewal and shall provide that the dealer has thirty (30) days in which to cure any claimed deficiency; provided, that a dealer has a right to cure three (3) times in any twelve (12) month period during the period of the dealership agreement. The sixty (60) day notice provisions of this section shall not apply and the termination, cancellation or nonrenewal may be made effective immediately upon written notice, if the reason for termination, cancellation or nonrenewal is in the event the dealer:

(1) Voluntarily abandons the dealership relationship;

(2) Is convicted of a felony offense related to the business conducted pursuant to the dealership;

(3) Engages in any substantial act which tends to materially impair the goodwill of the grantor's trade name, trademark, service mark, logotype or other commercial symbol;

(4) Makes a material misrepresentation of fact to the grantor relating to the dealership;

(5) Attempts to transfer the dealership (or a portion thereof) without authorization of the grantor; or

(6) Is insolvent, files or suffers to be filed against it any voluntary or involuntary bankruptcy petition, or makes an assignment for the benefit of creditors or similar disposition of assets of the dealer business.

(b) If the reason for termination, cancellation, or nonrenewal is nonpayment of sums due under the dealership, the dealers shall be entitled to written notice of such default, and shall have ten (10) days in which to cure such default from the date of such notice. A dealer has the right to cure three (3) times in any twelve (12) month period during the period of the dealership agreement.

(c) If the reason for termination, cancellation or nonrenewal is for violation of any law, regulation or standard relating to public health or safety, the dealer shall be entitled to immediate written notice and shall have twenty-four (24) hours to cure such violation.

(d) No grantor may terminate, cancel or fail to renew a dealership, directly or indirectly, or otherwise take any action to diminish the dealership or its value, other than for good cause.

History of Section.
(P.L. 2013, ch. 308, § 1; P.L. 2013, ch. 370, § 1.)