Maine Revised Statutes Title 10 Sec. 1174-C – Survivorship
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1. Right of family member. The right of a designated family member to succeed in dealer ownership is governed by the following provisions.
A. A designated family member of a deceased, incapacitated or retiring new motor vehicle dealer, which family member has been designated under the will of the dealer or in writing to the manufacturer, distributor, factory branch, factory representative, wholesaler, distributor branch or distributor representative, may succeed the dealer in the ownership or operation of the dealership under the existing franchise or distribution agreement if the designated family member gives the manufacturer, distributor, factory branch, factory representative, wholesaler, distributor branch or distributor representative of new motor vehicles written notice of the intention to succeed to the dealership within 120 days of the dealer’s death, incapacity or retirement and unless there exists good cause for refusal to honor the succession on the part of the manufacturer, factory branch, factory representative, distributor, wholesaler, distributor branch or distributor representative. The manufacturer has the burden of demonstrating good cause by clear and convincing evidence. [PL 2017, c. 217, §6 (AMD).]
B. The manufacturer, distributor, factory branch, factory representative or importer may request and the designated family member shall provide, upon the request, on forms provided for that purpose, personal and financial data that is reasonably necessary to determine whether the succession shall be honored. [PL 1981, c. 331, §7 (NEW).]
C. In addition to a designated family member, a person who has been a general manager or other employee with significant and varied managerial experience for a dealer for at least 5 years may be designated by that dealer to succeed in dealer ownership, and the designee has the same rights and status as a designated family member. [PL 1997, c. 521, §24 (NEW).]
[PL 2017, c. 217, §6 (AMD).]
Terms Used In Maine Revised Statutes Title 10 Sec. 1174-C
- Designated family member: means the spouse, child, grandchild, parent, brother or sister of the owner of a new motor vehicle dealer who, in the case of the owner's death, is entitled to inherit the ownership interest in the new motor vehicle dealer under the terms of the owner's will, or who, in the case of an incapacitated owner of a new motor vehicle dealer, has been appointed by a court as the legal representative of the new motor vehicle dealer's property. See Maine Revised Statutes Title 10 Sec. 1171
- Distributor branch: means a branch office maintained by a distributor or wholesaler who or which sells or distributes new or used motor vehicles to motor vehicle dealers. See Maine Revised Statutes Title 10 Sec. 1171
- Distributor representative: means a representative employed by a distributor branch, distributor or wholesaler. See Maine Revised Statutes Title 10 Sec. 1171
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Factory branch: means a branch office maintained by a manufacturer which manufactures or assembles motor vehicles for sale to distributors or motor vehicle dealers or which is maintained for directing and supervising the representatives of the manufacturer. See Maine Revised Statutes Title 10 Sec. 1171
- Factory representative: means a representative employed by a manufacturer or employed by a factory branch for the purpose of making or promoting the sale of motor vehicles or for supervising, servicing, instructing or contracting motor vehicle dealers or prospective motor vehicle dealers. See Maine Revised Statutes Title 10 Sec. 1171
- Franchise: means an oral or written arrangement for a definite or indefinite period in which a manufacturer, distributor or wholesaler grants to a motor vehicle dealer a license to use a trade name, service mark or related characteristic, and in which there is a community of interest in the marketing of motor vehicles or services related thereto at wholesale, retail, leasing or otherwise. See Maine Revised Statutes Title 10 Sec. 1171
- in writing: include printing and other modes of making legible words. See Maine Revised Statutes Title 1 Sec. 72
- manufacturer: includes the terms "franchisor" "distributor" "distributor branch" "factory branch" and "factory representative. See Maine Revised Statutes Title 10 Sec. 1171
- Motor vehicle: means any motor-driven vehicle, except motorcycles and recreational vehicles defined under section 1432, subsection 18?A, required to be registered under Title 29?A, chapter 5. See Maine Revised Statutes Title 10 Sec. 1171
- Motor vehicle dealer: means a person other than a manufacturer, distributor, distributor branch, distributor representative, factory branch or factory representative who sells or solicits or advertises the sale of new or used motor vehicles. See Maine Revised Statutes Title 10 Sec. 1171
- New motor vehicle: means a motor vehicle that has not been previously sold to any person except a distributor, wholesaler or motor vehicle dealer for resale by a franchise. See Maine Revised Statutes Title 10 Sec. 1171
- Person: means a natural person, corporation, partnership, trust or other entity, and, in case of an entity, it shall include any other entity in which it has a majority interest or effectively controls as well as the individual officers, directors and other persons in active control of the activities of each such entity. See Maine Revised Statutes Title 10 Sec. 1171
- wholesaler: means any person who sells or distributes new or used motor vehicles to motor vehicle dealers or who maintains distributor representatives within this State. See Maine Revised Statutes Title 10 Sec. 1171
2. Refusal to honor; notice required. The refusal to honor the succession to ownership is governed by the following provisions.
A. If a manufacturer, distributor, factory branch, factory representative or importer believes that good cause exists for refusing to honor the succession to the ownership and operation of a dealership by a family member of a deceased or incapacitated new motor vehicle dealer under the existing franchise agreement, the manufacturer, distributor, factory branch, factory representative or importer may, within 60 days of receipt of the information requested in subsection 1, paragraph B, serve upon the designated family member notice of its refusal to honor the succession or its intent to discontinue the existing franchise agreement with the dealership no sooner than 90 days from the date the notice is served. [PL 1981, c. 331, §7 (NEW).]
B. The notice shall state the specific grounds for the refusal to honor the succession and of its intent to discontinue the existing franchise agreement with the dealership no sooner than 90 days from the date the notice is served. [PL 1981, c. 331, §7 (NEW).]
C. If notice of refusal and discontinuance is not timely served upon the family member, the franchise agreement shall continue in effect subject to termination only as otherwise permitted by this section. [PL 1981, c. 331, §7 (NEW).]
[PL 1981, c. 331, §7 (NEW).]
3. Written designation of succession unaffected. This section does not preclude a new motor vehicle dealer from designating any person as his successor by written instrument filed with the manufacturer, distributor, factory branch, factory representative or importer.
[PL 1981, c. 331, §7 (NEW).]
SECTION HISTORY
PL 1981, c. 331, §7 (NEW). PL 1997, c. 521, §§23,24 (AMD). PL 1997, c. 521, §24 (AMD). PL 2003, c. 356, §9 (AMD). PL 2017, c. 217, §6 (AMD).