Section 15-1009 - Termination, cancellation or failure to renew model, line-make or dealer agreement(a)(1) A manufacturer or distributor may terminate, cancel, or fail to renew a model, line-make, or dealer agreement with a dealer only for good cause.(2)(i) The manufacturer or distributor has the burden of showing good cause for the termination or cancellation of or failure to renew a model, line-make, or dealer agreement with a dealer.(ii) The determination of good cause shall be based on:1. The extent of the dealer's penetration into the relevant market area for the relevant model or line-make ;2. The nature and extent of the dealer's investment in the dealer's business;3. The adequacy of the dealer's service facilities, equipment, parts, supplies, and personnel;4. The effect of the proposed action on the community;5. The extent and quality of the dealer's service under recreational vehicle warranties;6. Any failure of the dealer to follow agreed-on procedures and standards related to the overall operation of the dealership consistent with the law and the dealer agreement; and7. The dealer's performance under the terms of the dealer agreement.(b) On renewal of a dealer agreement, a manufacturer or distributor may not require additional inventory stocking requirements or increased sales targets in excess of the market growth in the dealer's area of sales.(c)(1) Except as otherwise provided in this subsection, a manufacturer or distributor shall provide a dealer with written notice at least 120 days before the termination, cancellation, or nonrenewal of a model, line -make, or dealer agreement.(2) The notice shall state all reasons for the proposed termination, cancellation, or nonrenewal.(3)(i) Within 30 days following receipt of the notice, a dealer may provide written notice of intent to rectify all claimed deficiencies.(ii) If the deficiencies are rectified by the dealer within 120 days following the notice of intent to rectify, the manufacturer's or distributor's notice of termination is void.(iii) Subject to paragraph (5) of this subsection, if a dealer fails to provide timely written notice of intent to rectify or fails to rectify within 120 days after notice of intent to rectify, the termination, cancellation, or nonrenewal of the dealer agreement shall take effect.(4) The 120-day notice period shall be reduced to 30 days if the termination, cancellation, or nonrenewal is due to: (i) A dealer or one of the dealer's owners being convicted of, or entering a plea of nolo contendere to, a felony;(ii) The abandonment or closing of the business operations of the dealer for 10 consecutive business days, unless the closing is due to a cause that is out of the dealer's control;(iii) Asignificant misrepresentation by a dealer materially affecting the business relationship; or(iv) A suspension or revocation of a dealer's license, or failure by a dealer to renew a dealer's license.(5) The notice provisions of this section do not apply if the reason for termination, cancellation, or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy.(d)(1) A dealer may terminate, cancel, or not renew a model, a line-make, or the dealer agreement with a manufacturer or distributor with or without good cause at any time by giving 30 days' written notice to the manufacturer or distributor.(2)(i) If the termination, cancellation, or nonrenewal of the model, line-make, or dealer agreement is for good cause, the dealer has the burden of showing good cause.(ii) A determination of good cause may be based on: 1. A manufacturer or distributor being convicted of, or entering a plea of nolo contendere to, a felony;2. The business operations having been abandoned or closed for 10 consecutive days, unless the closing is due to a cause that is out of the control of the manufacturer or distributor;3. A significant misrepresentation by the manufacturer or distributor that materially affects the business relationship;4. A declaration by the manufacturer or distributor of insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy;5. A manufacturer's or distributor's material violation of the dealer agreement that is not cured within 120 days after written notice by the dealer;6. A manufacturer or distributor coercing or attempting to coerce a dealer;7. A manufacturer or distributor violating an area of sales protection or allowing other dealers to violate an area of sales protection; or8. A material violation of this section that is not cured within 30 days after written notice of the violation by the dealer.(e) If the dealer agreement is terminated, canceled, ornot renewed by the dealer for good cause, within 45 days afterthe termination, cancellation, or nonrenewal, the manufactureror distributor shall, at request of the dealer, repurchase : (1) All new, unaltered, undamaged, and untitled recreational vehicles that were acquired from the manufacturer or distributor within 18 months before the termination, cancellation, or nonrenewal, at 100% of the invoice cost, including transportation costs, except that if any recreational vehicle is damaged, the amount due to the dealer shall be reduced by the cost to repair the damage;(2) All new, undamaged accessories and proprietary parts with the original invoice sold to the dealer for resale within 12 months before the termination, cancellation, or nonrenewal of the dealer agreement, at 105% of the dealer's original price paid; and(3) Any properly functioning diagnostic equipment, specialty tools, current signage, or other equipment and machinery that was purchased within 5 years before the termination, cancellation, or nonrenewal and can no longer be used in the normal course of business, at 100% of the dealer's original price paid, plus freight, destination, delivery, and any applicable tax.(f) If the dealer agreement is terminated, canceled, or not renewed by the manufacturer or distributor without good cause, the manufacturer or distributor shall repurchase dealer inventory as provided in subsection (e) of this section.(g) A dealer is not prohibited from selling the remaining in-stock inventory of a particular model or line-make after a dealer agreement has been terminated, canceled, or not renewed by the manufacturer or distributor.(h) When taking on an additional line-make of a recreational vehicle, a dealer shall notify in writing any manufacturer or distributor with whom the dealer has a dealer agreement of a similar line-make at least 30 days before entering into a dealer agreement for the additional line-make.Added by 2024 Md. Laws, Ch. 526,Sec. 1, eff. 10/1/2024.Added by 2024 Md. Laws, Ch. 525,Sec. 1, eff. 10/1/2024.