1. a. A supplier shall terminate a dealership agreement for equipment other than outdoor power equipment by cancellation, nonrenewal, or a substantial change in competitive circumstances only upon good cause and upon at least ninety days‘ prior written notice delivered to the dealer by certified mail or restricted certified mail. A supplier shall terminate a dealership agreement for outdoor power equipment by cancellation or nonrenewal only upon good cause and upon at least ninety days’ prior written notice delivered to the dealer by restricted certified mail or hand delivered by a representative of the supplier to the dealer or a designated representative of the dealer.

 b. A written termination notice must specify each deficiency constituting good cause for the action. The notice must also state that the dealer has sixty days to cure a specified deficiency. If the deficiency is cured within sixty days from the date that the notice is delivered, the notice is void. However, if the deficiency is based on a dealer’s inadequate representation of a manufacturer‘s product relating to sales, as provided in section 322F.1, the notice must state that the dealer has eighteen months to cure the deficiency. If the deficiency based on inadequate representation of a manufacturer’s product relating to sales is cured within eighteen months from the date that notice is delivered, the notice is void.

Terms Used In Iowa Code 322F.2

  • Days: means calendar days. See Iowa Code 322G.2
  • dealership: means a person engaged in the retail sale of equipment. See Iowa Code 322F.1
  • Dealership agreement: means an oral or written agreement, either express or implied, between a supplier and a dealer which provides that the dealer is granted the right to sell, distribute, or service the supplier's equipment, regardless of whether the equipment carries a trade name, trademark, service mark, logotype, advertisement, or other commercial symbol, and which provides evidence of a continuing commercial relationship between the supplier and the dealer. See Iowa Code 322F.1
  • Equipment: means agricultural equipment, construction equipment, industrial equipment, utility equipment, or outdoor power equipment. See Iowa Code 322F.1
  • Good cause: means a condition which occurs under any of the following circumstances:
     a. See Iowa Code 322F.1
  • Manufacturer: means a person engaged in the business of constructing or assembling all-terrain vehicles required to be registered under this chapter and who has an established place of business for that purpose in this state. See Iowa Code 321I.1
  • Outdoor power equipment: means equipment using small motors or engines, if the equipment is used principally for outside service, including but not limited to aerators, augers, blowers, brush clearers, brush cutters, chain saws, dethatchers, edgers, hedge trimmers, lawn mowers, pole saws, power rakes, snowblowers, and tillers. See Iowa Code 322F.1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
  • Supplier: means the manufacturer, wholesaler, or distributor of equipment sold by a dealer. See Iowa Code 322F.1
 2. The supplier shall have the right to terminate immediately without notice in the event the action is for good cause as defined in section 322F.1, subsection 7, paragraphs “b” through “m”.
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