In determining whether good cause for the refusal to honor the succession or sale of dealership exists, the manufacturer, distributor, factory branch or importer has the burden of proving that the successor or purchaser is a person who is not of good moral character or does not meet the franchisor’s existing and reasonable standards and, considering the volume of sales and service of the new motor vehicle dealer, uniformly applied minimum business experience standards in the market area.

64 Del. Laws, c. 27, § ?1; 73 Del. Laws, c. 78, § ?9;

Terms Used In Delaware Code Title 6 Sec. 4911

  • dealer: includes any person who engages exclusively in the repair of motor vehicles, except motor homes, if such repairs are performed pursuant to the terms of a franchise or other agreement with a franchiser or such repairs are performed as part of a manufacturer's or franchiser's warranty. See Delaware Code Title 6 Sec. 4902
  • Distributor: which means any person, resident or nonresident, who in whole or in part offers for sale, sells or distributes any new motor vehicle to new motor vehicle dealers or who maintains factory representatives or who controls any person, firm, association, corporation or trust, resident or nonresident, who in whole or in part offers for sale, sells or distributes any new motor vehicle to new motor vehicle dealers. See Delaware Code Title 6 Sec. 4902
  • Factory branch: which means a branch office maintained by a manufacturer for the purpose of selling, or offering for sale, vehicles to a distributor or new motor vehicle dealer, or for directing or supervising in whole or in part factory or distributor representatives. See Delaware Code Title 6 Sec. 4902
  • Manufacturer: includes the following terms:

    a. See Delaware Code Title 6 Sec. 4902

  • Motor vehicle: means every vehicle intended primarily for use and operation on the public highways which is self-propelled, not including motor homes, motor home products and recreational vehicles, farm tractors and other machines and tools used in the production, harvesting and care of farm products. See Delaware Code Title 6 Sec. 4902
  • Person: means every natural person, partnership, corporation, association, trust, estate, or any other legal entity. See Delaware Code Title 6 Sec. 4902
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