North Dakota Code 51-07-26.1 – Refusal to honor succession
1. If a manufacturer, wholesaler, or distributor believes that good cause exists to refuse to honor the intended succession under section 51-07-26, then the manufacturer, wholesaler, or distributor shall serve the named successor written notice of refusal to honor the intended succession within sixty days of its receipt of the notice of the intended succession. The notice must contain specific grounds for the refusal to honor the succession.
Terms Used In North Dakota Code 51-07-26.1
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- written: include "typewriting" and "typewritten" and "printing" and "printed" except in the case of signatures and when the words are used by way of contrast to typewriting and printing. See North Dakota Code 1-01-37
2. If notice of refusal to honor the intended succession is not timely served upon the intended successor, the successor may continue the franchise subject only to termination as permitted otherwise in this chapter.
3. In determining whether good cause exists for the refusal to honor the intended succession, the manufacturer, wholesaler, or distributor has the burden of proving that the intended successor is not a person of good moral character or does not meet the franchisor’s existing and reasonable standards. Good cause for refusal to honor succession does not include the owner’s dealership being dualed with another manufacturer’s line.