(a) Except as provided in section 481G-5, a distributor shall be liable to a dealer who sells the products of the distributor under a dealership from the distributor for damages and such equitable relief as the court deems proper resulting from the wrongful or illegal termination or cancellation of the dealership during its term or the distributor’s unreasonable refusal to renew the dealership.

Terms Used In Hawaii Revised Statutes 481G-4

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Dealer: means any person, corporation, partnership, association, association of dealers, or other form of business enterprise engaged in the business of selling products. See Hawaii Revised Statutes 481G-1
  • Dealership: means any agreement, written or verbal, between a distributor and a dealer under which the dealer is granted the right, for a definite or indefinite period of time, to sell products on behalf of a distributor to consumers and other end-users. See Hawaii Revised Statutes 481G-1
  • Distributor: means any person, corporation, partnership, or other form of business enterprise engaged in the sale, consignment, exchange, or any other form of transfer of a product which it manufactures, assembles, constructs, creates, or obtains in any manner from a manufacturer. See Hawaii Revised Statutes 481G-1
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Products: includes , but is not limited to: typewriters, copiers, electronic cash registers, dictating equipment, calculators, offset printers, letter openers, computers, or word processing equipment, but does not include such items as pencils, erasers, stationery, paper clips, or other such miscellaneous material normally used in an office. See Hawaii Revised Statutes 481G-1
(b) A dealer suffering damages as a result of the termination or cancellation of, or failure to renew, the dealership may bring an action under this section against the distributor who wrongfully or illegally terminated, canceled, or unreasonably refused to renew the dealership in the court of general jurisdiction of the dealer’s principal place of business. The action may be brought without regard to the amount in controversy. If the dealer prevails in the action, the dealer may recover actual damages sustained, the costs of the suit, including reasonable attorney’s fees, and such equitable relief as the court deems proper.

The court may also grant such temporary relief as it may deem necessary and proper.

(c) It shall be a defense to any action brought under this section that the dealership was terminated, canceled, or not renewed because:

(1) The dealer failed to comply substantially with essential and reasonable requirements of the dealership;
(2) The dealer failed to act in good faith in carrying out the terms and provisions of the dealership; or
(3) Of any of the reasons enumerated in section 481G-5; or
(4) Of other legitimate business reasons; provided that a termination, cancellation, or failure to renew a dealership for the purpose of enabling the distributor to assume operation of the dealer’s business shall not be considered to be a legitimate business reason unless the dealer is paid reasonable compensation for the value of the dealership, including good will.
(d) No action may be brought under this section for a cause of action which arose more than two years prior to the date on which the action is brought.

  Previous
Next  
 Chapter 481G Contents