322A.2  Discontinuing franchise.

Notwithstanding the terms, provisions or conditions of any agreement or franchise, no franchiser shall terminate or refuse to continue any franchise unless the franchiser has first established, in a hearing held under the provisions of this chapter, that:

1.  The franchiser has good cause for termination or noncontinuance, and

2.  Upon termination or noncontinuance, another franchise in the same line-make will become effective in the same community, without diminution of the motor vehicle service formerly provided, or that the community cannot be reasonably expected to support such a dealership; provided, however, a franchiser may terminate a franchise for a particular line-make if the franchiser discontinues that line-make and a franchiser may terminate a franchise if the franchisee's license as a motor vehicle dealer is revoked pursuant to the provisions of chapter 322.

Section History: Early form

  [C71, 73, 75, 77, 79, 81, § 322A.2]


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