North Dakota Code > Title 51 > Chapter 51-20.1 > § 51-20.1-03 - Termination of contractual arrangements to be done with good cause - Good cause defined
Current as of: 2009
1. Any distributor of heavy construction equipment, repair parts, or both, who enters into a written contract with any retail dealer in heavy construction equipment, repair parts, or both, in which the retail dealer agrees to maintain a stock of heavy construction equipment, repair parts, or both, may not terminate, cancel, or fail to renew the contract without good cause.
2. As used in this section, "good cause" means that the retail dealer has failed to comply with the requirements imposed upon the retail dealer by the terms of the written contract between the retail dealer and the distributor. The determination by the distributor that the distributor has good cause for termination, cancellation, or nonrenewal must be made in good faith.
3. In any civil action against a distributor for violating this section, the distributor must establish that the contract termination, cancellation, or nonrenewal was made in good faith for good cause. If the distributor fails to establish good cause for its termination, cancellation, or nonrenewal action, the distributor is liable for all special and general damages sustained by the retail dealer, including, but not limited to, the costs of the litigation and reasonable attorney's fees for prosecuting the civil action. In addition, the retail dealer, where appropriate, is entitled to injunctive relief. The provisions of this section apply to contracts in effect on July 1, 1981, which have no expiration date and are continuing contracts, and to all other contracts entered into, amended, or renewed after June 30, 1981. This section does not apply to contracts in force and effect on June 30, 1981, which by their terms will terminate on a date subsequent to June 30, 1981. Those contracts are governed by the law as it existed prior to July 1, 1981.
North Dakota Laws: Franchises
U.S. Code Provisions: Franchises
Federal Regulations: Franchises
Related Articles: Franchises