Bill Text: MI SB1037 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Businesses; distributors and dealers; statute regulating business relationship with farm and utility equipment manufacturers; revise termination provision. Amends sec. 7a of 1984 PA 341 (MCL 445.1457a).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-09-10 - Referred To Committee On Regulatory Reform [SB1037 Detail]

Download: Michigan-2013-SB1037-Introduced.html

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SENATE BILL No. 1037

 

 

September 10, 2014, Introduced by Senator CASWELL and referred to the Committee on Regulatory Reform.

 

 

 

     A bill to amend 1984 PA 341, entitled

 

"Farm and utility equipment act,"

 

by amending section 7a (MCL 445.1457a), as added by 1995 PA 86.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7a. (1) A supplier shall not terminate, cancel, fail to

 

renew, or substantially change the competitive circumstances of an

 

agreement without good cause. A supplier shall provide a dealer at

 

least 90 days' prior written notice of termination, cancellation,

 

nonrenewal, or substantial change in competitive circumstances. The

 

notice shall state the reasons or deficiencies for the action, and

 

the dealer has 90 days to submit a plan to correct the stated

 

reasons or deficiencies that is acceptable to the supplier or to

 

correct the stated reasons or deficiencies. Failure by a dealer to

 

comply with the requirements imposed upon on the dealer by the

 

supplier's agreement shall be is cause for termination, provided

 

that the requirements are not different from those requirements

 

imposed by the supplier on other similarly situated equipment

 

dealers within the located in this state.

 

     (2) The notice described in subsection (1) shall state all the

 

reasons for termination, cancellation, nonrenewal, or substantial

 

change in competitive circumstances and shall provide that the

 

dealer has 90 days in which to rectify any claimed deficiency. If a

 

plan to rectify is submitted or the deficiency is rectified within

 

90 days, the notice is considered void.

 

     (3) The notice provisions of this section shall do not apply

 

if the reason for termination, cancellation, or nonrenewal is

 

insolvency, the occurrence of an assignment for the benefit of

 

creditors, bankruptcy, or material misrepresentation and

 

falsification of records. If the reason for termination,

 

cancellation, nonrenewal, or substantial change in competitive

 

circumstances is nonpayment of sums money due under the agreement,

 

the dealer shall be is entitled to written notice of default in

 

payment and shall have has 10 days from the date of delivery of or

 

posting of the notice in which to remedy the default. A supplier

 

shall be is liable to a dealer for damages caused to the dealer by

 

the supplier's breach of subsection (1).

 

     (4) Notwithstanding the terms of any agreement, the sale or

 

transfer of his or her ownership interest in a dealership by any of

 

the following to 1 or more members of his or her immediate family

 

is not good cause for the termination, cancellation, or failure to

 

renew an agreement or to substantially change the competitive

 

circumstances of an agreement:

 

     (a) The dealer, if the dealer is a sole proprietorship.

 

     (b) An individual who is the majority stockholder, if the

 

dealer is a corporation.

 

     (c) An individual who is a partner, if the dealer is a

 

partnership.