{"data":{"id":"us-ky/krs-365.831","jurisdiction":"us-ky","citation":"KRS 365.831","heading":"Termination or change of contract by supplier -- Good cause requirement -","body":"- When not permitted -- Notice.\n(1) No supplier, directly or through an officer, agent, or employee, shall terminate or\nsubstantially change the competitive circumstances of a retail agreement contract\nwithout good cause. As used in this subsection, \"good cause\" means the failure by a\nretailer to comply with requirements imposed upon the retailer by the retail\nagreement contract if the requirements are not different from those i mposed on\nother retailers similarly situated in this state. In addition, good cause exists if:\n(a) There has been a closeout or sale of a substantial part of the retailer's assets\nrelated to the equipment business, or there has been a commencement of a\ndissolution or liquidation of the retailer;\n(b) The retailer has changed its principal place of business or added additional\nlocations without prior approval of the supplier, which shall not be\nunreasonably withheld;\n(c) The retailer has substantially default ed under a chattel mortgage or other\nsecurity agreement between the retailer and the supplier, or there has been a\nrevocation or discontinuance of a guarantee of a present or future obligation of\nthe retailer to the supplier;\n(d) The retailer has failed to operate in the normal course of business for seven (7)\nconsecutive days or has otherwise abandoned the business;\n(e) The retailer has pleaded guilty to or has been convicted of a felony affecting\nthe relationship between the retailer and supplier; or\n(f) The retailer transfers an interest in the dealership; or a person with a\nsubstantial interest in the ownership or control of the dealership, including an\nindividual proprietor, partner, or major shareholder, withdraws from the\ndealership or dies; or a subs tantial reduction occurs in the interest of an\nindividual proprietor, partner, or major shareholder in the dealership.\n(2) Good cause does not exist if the supplier consents to an action described in\nsubsection (1) of this section. Such consent exists if t he retail agreement contract\ndoes not provide the supplier with a right to terminate or substantially change the\ncompetitive circumstances of the contract as a result of such action, or the supplier\notherwise consents to such action.\n(3) No supplier, direc tly or through an officer, agent, or employee, shall terminate or\nsubstantially change the competitive circumstances of a retail agreement contract\nbased on high unemployment in the dealership market area, a labor dispute, the\nresults of a natural disaster , including a sustained drought, or other circumstances\nbeyond the retailer's control.\n(4) Except as provided in paragraphs (a) to (f) of subsection (1) of this section, a\nsupplier shall provide a retailer with at least ninety (90) days written notice of\ntermination of a retail agreement contract. The notice shall also contain a sixty (60)\nday written notice to cure the deficiency. The notice shall not be required if the\ntermination is enacted for reasons included in paragraphs (a) to (f) of subsection (1)\nof this section. The notice shall state all reasons constituting good cause for action.\nIn the case where termination is enacted due to market penetration, a reasonable\nperiod of time, not less than one (1) year, shall have existed where the supplier has\nworked with the retailer to gain the desired market share.","path":["KRS Chapter 365"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=42579","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:02Z","sha256":"dd5600f7acd41ab3dc06f99c33c67886650dbabeaf02dc034e7dab8cde7ee65e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-365.830","next":"us-ky/krs-365.832"},"notice":"GroundRules: Original legal text. Not legal advice."}