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South Carolina General Assembly

121st Session, 2015-2016

Indicates Matter Stricken   Indicates New Matter

S. 241   STATUS INFORMATION

General Bill

Sponsors: Senator Turner

Document Path: l:\council\bills\dka\3027sa15.docx

Introduced in the Senate on January 13, 2015

Currently residing in the Senate Committee on Judiciary

Summary: Cancellation of dealership agreements

HISTORY OF LEGISLATIVE ACTIONS

     Date Body Action Description with journal page number

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  12/10/2014  Senate  Prefiled

  12/10/2014  Senate  Referred to Committee on Judiciary

   1/13/2015  Senate  Introduced and read first time

   1/13/2015  Senate  Referred to Committee on Judiciary

A BILL

TO AMEND SECTION , CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CANCELLATION OF CERTAIN DEALERSHIP AGREEMENTS, SO AS TO ALLOW FOR THE CANCELLATION OR NONRENEWAL OF A DEALERSHIP AGREEMENT WITH NINETY DAYS WRITTEN NOTICE, INSTEAD OF A ONE-YEAR NOTICE IN CASES OF A DEALER'S FAILURE TO MEET MARKETING REQUIREMENTS AND NINETY-DAYS NOTICE INSTEAD OF ONE-HUNDRED-EIGHTY-DAYS NOTICE IN ALL OTHER CASES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section  (A) through (D) of the 1976 Code, as added by Act 369 of 2000, is amended to read:

"(A)    Except as provided in subsection (E), a manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, or officer, agent, or other representative of it shall notify an equipment dealer in writing of the termination or cancellation of the dealership agreement or selling agreement of the dealer at least one hundred eighty ninety days before its effective date, stating the specific grounds for the termination or cancellation.

(B)    The manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, or officer, agent, or other representative of it shall notify an equipment dealer in writing at least one hundred eighty ninety days before the contractual term of his dealership agreement or selling agreement expires that the agreement will not be renewed, stating the specific grounds for the nonrenewal in those cases where there is no intention to renew. The contractual term of a dealership agreement or selling agreement may not expire, without the written consent of the equipment dealer involved, before the expiration of at least one hundred eightyninety days following the written notice.

(C)    During the one hundred eighty ninety-day period, either party may petition a court to modify the one hundred eighty ninety-day stay or to extend it pending a final determination of the proceedings on the merits. The court may grant preliminary and final injunctive relief pursuant to the Rules of Civil Procedure.

(D)    Before termination or nonrenewal of the dealership agreement or selling agreement because of the dealer's failure to meet reasonable marketing criteria or market penetration, the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, shall provide written notice of the intention at least one year ninety days in advance. After the notice, the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division shall provide fair and reasonable efforts to work with the equipment dealer to gain the desired market share including, without limitation, reasonably making available to the dealer an adequate inventory of new equipment and parts and competitive marketing programs. The manufacturer, distributor, factory branch or division, or wholesale branch or division, at the end of the one-year ninety-day notice period, may terminate or elect not to renew the agreement only upon written notice specifying the reasons for determining that the dealer failed to meet reasonable criteria or market penetration. This written notice must specify that termination or nonrenewal is effective one hundred eighty ninety days from the date of the notice. Either party may petition the court pursuant to subsection (C)."

SECTION    2.    This act takes effect upon approval by the Governor.

 

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This web page was last updated on January 13, 2015 at 12:55 PM