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322A.11 Condition barring change in franchise.

Notwithstanding the terms, provisions or conditions of any agreement or franchise, the following shall not constitute good cause for the termination or noncontinuation of a franchise, or for entering into a franchise for the establishment of an additional dealership in a community for the same line-make:

1. The sole fact that franchiser desires further penetration of the market.

2. The change of ownership of the franchisee's dealership or the change of executive management of the franchisee's dealership, unless the franchiser, having the burden of proof, proves that such change of ownership or executive management will be substantially detrimental to the distribution of franchiser's motor vehicles in the community.

3. The fact that the franchisee refused to purchase or accept delivery of any motor vehicle or vehicles, parts, accessories or any other commodity or service not ordered by the franchisee.

Section History: Early form

[C71, 73, 75, 77, 79, 81, § 322A.11]

Internal References

Referred to in § 322A.12, 322A.15

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Last update: Mon Jan 27 16:05:08 CST 1997
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