- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 25. Motor Vehicle Transactions
- Section 110. Termination of Franchise Agreements.
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. Consistency With State Law.
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. Notice of Termination.
AS 45.25.110. Termination of Franchise Agreements.
- (a) A manufacturer may not terminate a franchise with a new motor vehicle dealer unless
- (1) the manufacturer has
- (A) satisfied the notice requirements of this chapter;
- (B) shown that there is good cause for the termination of the franchise, and, if the reasons underlying the good cause can
be corrected by the new motor vehicle dealer, the new motor vehicle dealer has failed for 60 days after delivery of the
notice required by AS 45.25.120 to make the
corrections; the circumstances identified under AS 45.25.120
(a)(2) for which a 15-day notice of termination is required do not qualify as reasons for which correction is allowed
under this paragraph; or
- (2) the new motor vehicle dealer has systematically engaged in fraud against consumers or the manufacturer or in the
operation of the new motor vehicle dealership.
- (b) Notwithstanding (a)(1) of this section, a manufacturer may not terminate a franchise agreement with a new motor
vehicle dealer because of the death or incapacity of an owner if the owner is not listed in the franchise as one on
whose expertise and abilities the manufacturer relied in the granting of the franchise.
- (c) In this section, "good cause" includes when the new motor vehicle dealer fails to comply with or observe a material
provision of the franchise agreement. For the purposes of determining good cause under this subsection, reasonable
sales and service performance criteria and capital and facility requirements may be considered material provisions only
if the criteria or requirements were communicated in writing to the new motor vehicle dealer within a reasonable period
before the effective date of the termination or nonrenewal so that a reasonable opportunity was afforded over a period
of not less than six months to comply with the criteria or requirements.
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