{"data":{"id":"us-ky/krs-190a.050","jurisdiction":"us-ky","citation":"KRS 190A.050","heading":"New recreational vehicle dealer may terminate a dealer agreement with","body":"recreational vehicle manufacturer with or without good cause -- Conditions\napplicable to termination -- Burden of showing good cause -- Notice -- Clear\ntitle required for inventory to be repurchased by manufacturer.\n(1) A new recreational vehicle dealer may terminate a dealer agreement with a\nrecreational vehicle manufacturer with or without good cause. If the dealer\nterminates or does not renew the dealer agreement with good caus e, the\nmanufacturer shall comply with the provisions of subsection (5) of this section. If\nthe dealer terminates or does not renew the dealer agreement without good cause,\nthe provisions of subsection (5) of this section shall not apply. A dealer that\nterminates a dealer agreement for good cause shall provide the manufacturer with\nwritten notice at least ninety (90) days prior to the effective date of the termination\nof the dealer agreement.\n(2) All of the following conditions shall apply to a termination o f a dealer agreement\nunder this section for good cause:\n(a) The notice described in subsection (1) of this section shall state all reasons for\nthe proposed termination; and\n(b) The notice described in subsection (1) of this section shall state that if the\nmanufacturer provides to the dealer within thirty (30) days after the\nmanufacturer receives the notice of termination a written notification of intent\nto cure all claimed deficiencies, the manufacturer shall have ninety (90) days\nafter the manufacturer's r eceipt of the original notice to correct the\ndeficiencies. If all of the deficiencies are corrected within the ninety (90) day\nperiod, the notice shall be deemed void and the dealer shall not terminate the\ndealer agreement because of the claimed deficienci es stated in the notice. If\nthe manufacturer does not provide a notification of intent to cure deficiencies\nwithin thirty (30) days of receiving the original notice, the termination shall\ntake effect thirty (30) days from the manufacturer's receipt of the original\nnotice.\n(3) The dealer has the burden of showing good cause. Any of the following factors shall\nbe considered good cause for the proposed termination of a dealer agreement by a\ndealer:\n(a) A conviction of a felony or a plea of guilty or nolo contendere to a felony by a\nmanufacturer of a crime that was committed during the time frame of the\ncurrent dealer agreement; provided there is full disclosure, in writing, of any\nfelony conviction or plea of guilty or nolo contendere to any such felony crime\nthat occurred within ten (10) years of entering into the dealer agreement;\n(b) Abandonment or permanent closing of the business operations of the\nmanufacturer for ten (10) consecutive business days without contacting the\ndealer prior to the closing, unless the closing is due to an act of God, strike,\nlabor difficulty, or other cause over which the manufacturer has no control;\n(c) A misrepresentation to the dealer by the manufacturer that materially affects\nthe business relationship between the dealer and manufacturer;\n(d) A material violation of any of the provisions of this chapter by the\nmanufacturer;\n(e) A material breach of the dealer agreement by the manufacturer; or\n(f) The manufacturer becomes insolvent, is bankrupt, or makes an assignment for\nthe benefit of the creditors.\n(4) A dealer is not required to provide notice or an opportunity to correct deficiencies\nunder this section if the grounds for termination or nonrenewal of the dealer\nagreement by the dealer includes one (1) of the following:\n(a) The manufacturer becomes insolvent;\n(b) The manufacturer is bankrupt; or\n(c) The manufacturer makes an assignment for the benefit of creditors.\n(5) If the manufacturer fails to provide the notice of intent to cure or fails to cure any\nclaimed deficiencies pursuant to subsection (2) of this section, the manufacturer\nshall, at the election of the dealer and within forty -five (45) days after termination\nor nonrenewal, repurchase as follows:\n(a) All new, untitled recreational vehicles that were acquired from the\nmanufacturer within the twelve (12) months prior to the effective date of the\nnotice of termination of the dealer agreement that have not been use d, except\nfor demonstration purposes, and that have not been altered or damaged, may\nbe repurchased at one hundred percent (100%) of the net invoice cost of the\nrecreational vehicles, including transportation, less applicable rebates and\ndiscounts to the d ealer. In the event any of the vehicles repurchased pursuant\nto this paragraph are damaged, but do not trigger a consumer disclosure\nrequirement, the amount due the dealer shall be reduced by the cost to repair\nthe vehicle. Damage prior to delivery to the dealer that is disclosed at the time\nof delivery shall not disqualify repurchase of that vehicle under this section;\n(b) All current and undamaged accessories and proprietary parts sold to the dealer\nfor resale by the manufacturer or distributor within the  twelve (12) months\nprior to the effective date of the termination of the dealer agreement that are\naccompanied by the original invoice may be repurchased at one hundred five\npercent (105%) of the original net price paid to the manufacturer to\ncompensate the dealer for handling, packing, and shipping the accessories and\nparts; and\n(c) Any properly functioning diagnostic equipment, special tools, current signage,\nand other equipment and machinery at one hundred percent (100%) of the\ndealer's net cost plus fr eight, destination, delivery, and distribution charges\nand sales taxes, if any, shall be repurchased if it was purchased by the dealer\nupon the manufacturer's request within five (5) years before termination,\ncancellation, or nonrenewal, and it can no longer be used in the normal course\nof the dealers' ongoing business. The manufacturer or distributor shall pay the\ndealer within thirty (30) days after receipt of the returned items.\n(6) The dealer shall show clear title to vehicle inventory and promptly retu rn or arrange\nfor the return of all the items the manufacturer is required to repurchase under\nsubsection (5) of this section at the expense of the manufacturer.","path":["KRS Chapter 190A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43552","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:45Z","sha256":"95fb8d585a69a1668fc6d7a0af661d05c80bdac55e3abf64052f0aa180b825df","source_id":"us-ky","stale":false,"prev":"us-ky/krs-190a.040","next":"us-ky/krs-190a.060"},"notice":"GroundRules: Original legal text. Not legal advice."}