(a)  Notwithstanding the terms, provisions, or conditions of any agreement to the contrary, a grantor shall provide a dealer sixty (60) days prior written notice of termination, cancellation, or nonrenewal. The notice shall state all reasons for termination, cancellation, or nonrenewal and shall provide that the dealer has thirty (30) days in which to cure any claimed deficiency; provided, that a dealer has a right to cure three (3) times in any twelve-month (12) period during the period of the dealership agreement. The sixty-day (60) notice provisions of this section shall not apply and the termination, cancellation, or nonrenewal may be made effective immediately upon written notice, if the reason for termination, cancellation, or nonrenewal is in the event the dealer:

(1)  Voluntarily abandons the dealership relationship;

(2)  Is convicted of a felony offense related to the business conducted pursuant to the dealership;

(3)  Engages in any substantial act that tends to materially impair the goodwill of the grantor‘s trade name, trademark, service mark, logotype, or other commercial symbol;

(4)  Makes a material misrepresentation of fact to the grantor relating to the dealership;

(5)  Attempts to transfer the dealership (or a portion thereof) without authorization of the grantor, excluding a sale or change of ownership; or

(6)  Is insolvent, files or suffers to be filed against it any voluntary or involuntary bankruptcy petition, or makes an assignment for the benefit of creditors or similar disposition of assets of the dealer business.

Terms Used In Rhode Island General Laws 6-54-4

  • Agreement: means a written contractual agreement between the merchant and the third-party delivery service. See Rhode Island General Laws 6-58-1
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Dealer: means a person who is a grantee of a dealership situated in this state, and any successor in interest, regardless of the subsequent sale or change in ownership of such entity. See Rhode Island General Laws 6-54-2
  • Dealership: means any of the following: A contract or agreement, either expressed or implied, whether oral or written, between two (2) or more persons, by which a person is granted the right to sell or distribute goods or services, or use a trade name, trademark, service mark, logotype, advertising, or other commercial symbol, in which there is a community of interest in the business of offering, selling, or distributing goods or services at wholesale, retail, by lease, agreement, or otherwise. See Rhode Island General Laws 6-54-2
  • Good cause: means , for the purposes of this act, good cause for terminating, diminishing, canceling, or nonrenewal shall mean:

    (i)  The failure by the dealer to substantially comply with the reasonable requirements imposed by the grantor; or

    (ii)  Any of the reasons listed in § 6-54-4(a)(1) through (a)(6). See Rhode Island General Laws 6-54-2

  • Grantor: means a person who grants a dealership, and any successor in interest, regardless of the subsequent sale or change in ownership of such person. See Rhode Island General Laws 6-54-2
  • Grantor: The person who establishes a trust and places property into it.

(b)  If the reason for termination, cancellation, or nonrenewal is nonpayment of sums due under the dealership, the dealer shall be entitled to written notice of such default, and shall have ten (10) days in which to cure such default from the date of such notice. A dealer has the right to cure three (3) times in any twelve-month (12) period during the period of the dealership agreement.

(c)  If the reason for termination, cancellation, or nonrenewal is for violation of any law, regulation, or standard relating to public health or safety, the dealer shall be entitled to immediate written notice and shall have five (5) days to cure such violation from the date of receipt of the written notice.

(d)  No grantor may terminate, cancel, or fail to renew a dealership, directly or indirectly, or otherwise take any action to diminish the dealership or its value, other than for good cause. No grantor may terminate, cancel, or fail to renew a dealership, directly or indirectly, or otherwise take any action to diminish the dealership or its value, if the dealership shall cure the alleged deficiency or violation in accordance with the provisions of this chapter.

History of Section.
P.L. 2013, ch. 308, § 1; P.L. 2013, ch. 370, § 1; P.L. 2022, ch. 243, § 1, effective June 28, 2022; P.L. 2022, ch. 244, § 1, effective June 28, 2022.