KRS 190.043: Refusal of manufacturer or distributor to honor succession.

(1) If a manufacturer or distributor believes that good cause exists for refusing to honor

the succession to the ownership of a new motor vehicle dealership by a family

member of a deceased or incapacitated owner of a new motor vehicle dealership

under the exi sting franchise agreement, the manufacturer or distributor may, not

more than sixty (60) days following the receipt of:

(a) Notice of the designated family member's intent to succeed to the ownership

of the new motor vehicle dealership; or

(b) Any personal or financial data which it has requested;

serve upon the designated family member and the commission, notice of its refusal

to honor the succession and its intent to discontinue the existing franchise with the

dealer no sooner than ninety (90) days from the date such notice is served.

(2) The notice provided in subsection (1) of this section must state the specific grounds

for the refusal to honor the succession and of its intent to discontinue the existing

franchise with the new motor vehicle dealer no s ooner than ninety (90) days from

the date such notice is served.

(3) If notice of refusal and discontinuance as provided in subsection (1) of this section

is not timely served upon the family member, the franchise shall continue in effect

subject to termination only as otherwise permitted by KRS 190.045.

(4) In determining whether good cause for the refusal to honor the succession exists,

the manufacturer, distributor, factory branch, or importer has the burden of proving

before the commission that the succ essor is a person who is not of good moral

character or does not meet the franchisor's existing and reasonable standards, and

considering the volume of sales and service of the new motor vehicle dealership, the

uniformly applied business experience standards in the market area.