{"data":{"id":"us-ky/krs-190a.040","jurisdiction":"us-ky","citation":"KRS 190A.040","heading":"Recreational vehicle manufacturer may terminate or not renew a new","body":"recreational vehicle dealer's agreement with good cause -- Determination of\ngood cause -- Notice of termination or nonrenewal of dealer agreement.\n(1) A recreational vehicle manufac turer, directly or through any officer, agent, or\nemployee, may terminate or not renew a new recreational vehicle dealer's agreement\nwith good cause.\n(2) A recreational vehicle manufacturer has the burden of showing good cause when\nterminating or not renew ing a dealer agreement for cause. For the purpose of\ndetermining whether there is good cause for the proposed action, any of the\nfollowing factors may be considered:\n(a) The extent of the penetration of the dealer in the area of sales responsibility;\n(b) The extent and quality of the service of the dealer under recreational vehicle\nwarranties;\n(c) The nature and extent of the investment of the dealer in the business of the\ndealer;\n(d) The adequacy of the service facilities, equipment, parts, supplies, and\npersonnel of the dealer;\n(e) The effect of the proposed action on the community;\n(f) Whether the dealer fails to follow agreed-upon procedures or standards related\nto the overall operation of the dealership; and\n(g) The performance by the dealer under the terms of the dealer agreement.\n(3) (a) Except as provided in paragraph (d) or (e) of this subsection, the manufacturer\nshall provide written notice at least ninety (90) days before the effective date\nof the termination or nonrenewal of the dealer agreement in the event the\ndealer is being terminated for good cause.\n(b) The notice shall state all of the reasons for the termination or nonrenewal of\nthe dealer agreement.\n(c) The notice shall state that if the dealer provides to the manufacturer within\nthirty (3 0) days after the dealer receives the original notice a written\nnotification of the intent of the dealer to cure all claimed deficiencies, the\ndealer shall have ninety (90) days from the receipt of the original notice to\ncorrect the claimed deficiencies. I f all of the deficiencies are corrected within\nthe ninety (90) day time period, the notice shall be deemed void and the\nmanufacturer shall not terminate or not renew the dealer agreement because of\nthe claimed deficiencies stated in the notice. If the deal er does not provide a\nnotification of intent to cure deficiencies within the thirty (30) day time\nperiod, the termination or nonrenewal of the dealer agreement shall take effect\nthirty (30) days from the dealer's receipt of the original notice.\n(d) A manufacturer may reduce the notice period of this subsection from ninety\n(90) days to thirty (30) days if the grounds for termination or nonrenewal of\nthe dealer agreement by the manufacturer are any of the following factors:\n1. A conviction of a felony or a plea of guilty or nolo contendere to a\nfelony by a dealer or an owner of a dealership of a crime that was\ncommitted during the time frame of the current dealer agreement;\nprovided there is full disclosure, in writing, of any felony conviction or\nplea of guilty or nolo contendere to any such felony crime that occurred\nwithin ten (10) years of entering into such dealer agreement;\n2. The abandonment or closing of the business operations of the dealer for\nten (10) consecutive business days without contacti ng the manufacturer\nprior to the closing unless the closing is due to an act of God, strike,\nlabor difficulty, or other cause over which the dealer has no control;\n3. A misrepresentation to the manufacturer by the dealer that materially\naffects the busines s relationship between the dealer and the\nmanufacturer;\n4. A suspension or revocation of the dealer's license, or refusal to renew\nthe dealer's license, by the Motor Vehicle Commission; or\n5. A material violation of this chapter which is not cured within t hirty (30)\ndays after the written notice by the manufacturer.\n(e) A manufacturer shall not be required to provide notice or an opportunity to\ncorrect deficiencies under this subsection if the grounds for termination or\nnonrenewal of the dealer agreement by the manufacturer include one (1) of the\nfollowing:\n1. The dealer becomes insolvent;\n2. The dealer is bankrupt; or\n3. The dealer makes an assignment for the benefit of creditors.","path":["KRS Chapter 190A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43551","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:45Z","sha256":"3aa5b9aeb5fd2c1cb1f05850597ab4b19fae7a1515ec6c156ad2b2967b67fa0d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-190a.030","next":"us-ky/krs-190a.050"},"notice":"GroundRules: Original legal text. Not legal advice."}