{"data":{"id":"us-ok/okla.-stat.-tit.-47-47-596.5","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 47, § 47-596.5","heading":"Manufacturer termination of dealer agreement - Good","body":"cause - Notice - Repurchase of inventory.\n\nA. A manufacturer, directly or through any officer, agent, or\n\nemployee, may terminate or not renew a dealer agreement without good\n\ncause. If the manufacturer terminates or does not renew the dealer\n\nagreement without good cause, the manufacturer shall comply with the\n\nprovisions of subsections D and E of this section. If the\n\nmanufacturer terminates or does not renew the dealer agreement with\n\ngood cause, the provisions of subsections D and E of this section\n\nshall not apply.\n\nB. A manufacturer has the burden of showing good cause for\n\nterminating or not renewing a dealer agreement. All of the\n\nfollowing factors shall be considered in determining whether there\n\nis good cause for a proposed termination or nonrenewal of a dealer\n\nagreement by a manufacturer:\n\n1. The extent of the penetration of the dealer in the relevant\n\nmarket area;\n\n2. The extent and quality of the service of the dealer under\n\nrecreational vehicle warranties;\n\n3. The nature and extent of the investment of the dealer in\n\nbusiness of the dealer;\n\n4. The adequacy of the service facilities, equipment, parts,\n\nsupplies, and personnel of the dealer;\n\n5. The effect of the proposed action on the community;\n\n6. Whether the dealer fails to follow agreed-upon procedures or\n\nstandards related to the overall operation of the dealership; and\n\n7. The performance by the dealer under the terms of dealer\n\nagreement.\n\nC. Except as otherwise provided in this section, a manufacturer\n\nshall provide a dealer with written notice of a termination or\n\nnonrenewal of a dealer agreement. All of the following conditions\n\napply to a notice described in this subsection:\n\n1. Except as provided in paragraph 4 or 5 of this subsection,\n\nthe manufacturer shall provide written notice at least ninety (90)\n\ndays before the effective date of the termination or nonrenewal of\n\nthe dealer agreement;\n\n2. The notice shall state all of the reasons for the\n\ntermination or nonrenewal of the dealer agreement;\n\n3. The notice shall state that if the dealer provides to the\n\nmanufacturer a written notification of the intent of the dealer to\n\ncure all claimed deficiencies within thirty (30) days after the\n\ndealer receives the notice, the dealer shall have one hundred twenty\n\n(120) days after the date of the notice to correct the claimed\n\ndeficiencies. If all of the deficiencies are corrected within the\n\none-hundred-twenty-day time period, the notice shall be deemed void\n\nand the manufacturer shall not terminate or not renew the dealer\n\nagreement because of the claimed deficiencies stated in the notice.\n\nIf the dealer does not provide a notification of intent to cure\n\ndeficiencies within the thirty-day time period, the termination or\n\nnonrenewal of the dealer agreement shall take effect sixty (60) days\n\nafter the dealer received the notice from the manufacturer;\n\n4. A manufacturer may reduce the notice period described in\n\nparagraph 1 of this subsection from ninety (90) days to thirty (30)\n\ndays and shall not be required to allow the dealer an opportunity to\n\ncorrect the deficiencies if the grounds for termination or\n\nnonrenewal of the dealer agreement by the manufacturer are any of\n\nthe specific categories of good cause described in subsection F of\n\nthis section; and\n\n5. A manufacturer shall not be required to provide notice or an\n\nopportunity to correct deficiencies under this subsection if the\n\ngrounds for termination or nonrenewal of the dealer agreement by the\n\nmanufacturer includes one of the following:\n\na. the dealer becomes insolvent,\n\nb. the dealer is bankrupt, or\n\nc. the dealer makes an assignment for the benefit of\n\ncreditors.\n\nD. If a manufacturer terminates or does not renew a dealer\n\nagreement for good cause under this section, the dealer, at its\n\noption, may require the manufacturer to repurchase any of the\n\nfollowing from the dealer:\n\n1. All new, untitled recreational vehicles that were acquired\nealer becomes insolvent,\n\nb. the dealer is bankrupt, or\n\nc. the dealer makes an assignment for the benefit of\n\ncreditors.\n\nD. If a manufacturer terminates or does not renew a dealer\n\nagreement for good cause under this section, the dealer, at its\n\noption, may require the manufacturer to repurchase any of the\n\nfollowing from the dealer:\n\n1. All new, untitled recreational vehicles that were acquired\n\nfrom the manufacturer within eighteen (18) months before the\n\neffective date of the notice of termination of the dealer agreement\n\nthat have not been used, except for demonstration purposes and have\n\nnot been altered or damaged, may be repurchased at one hundred\n\npercent (100%) of the net invoice cost of the recreational vehicles,\n\nincluding transportation, less applicable rebates and discounts to\n\nthe dealer;\n\n2. All current and undamaged accessories and proprietary parts\n\nsold to the dealer for resale within the eighteen (18) months prior\n\nto the effective date of the termination of the dealer agreement\n\nthat are accompanied by the original invoice may be repurchased at\n\none hundred five percent (105%) of the original net price paid to\n\nthe manufacturer to compensate the dealer for handling, packing, and\n\nshipping the accessories and parts; and\n\n3. Any properly functioning diagnostic equipment, special\n\ntools, current signage, and other equipment and machinery, purchased\n\nby the dealer within the five (5) years prior to the effective date\n\nof the termination of the dealer agreement at the request of the\n\nmanufacturer, if the equipment or machinery cannot be used in the\n\nnormal course of the ongoing business of the dealer, may be\n\nrepurchased at one hundred percent (100%) of the net cost of the\n\ndealer, plus freight, destination, delivery, and distribution\n\ncharges and sales taxes.\n\nE. The dealer shall promptly return or arrange for the return\n\nof all of the items the manufacturer is required to repurchase under\n\nsubsection D of this section at the expense of the manufacturer.\n\nF. As used in this section, “good cause” includes, but is not\n\nlimited to, any of the following:\n\n1. A conviction of a felony or a plea of guilty or nolo\n\ncontendere to a felony by a dealer or an owner of a dealership of a\n\ncrime that was committed during the time frame of the current dealer\n\nagreement; provided, there is full disclosure, in writing, of any\n\nfelony conviction or plea of guilty or nolo contendere to any such\n\nfelony crime that occurred within ten (10) years of entering into\n\nthe dealer agreement;\n\n2. Abandonment or permanent closing of the business operations\n\nof a dealer for twenty-one (21) consecutive business days without\n\ncontacting the manufacturer prior to the closing unless the closing\n\nis due to an act of God, strike, labor difficulty, or other cause\n\nover which the dealer has no control;\n\n3. A material misrepresentation to a manufacturer by a dealer\n\nthat severely affects the business relationship between the dealer\n\nand the manufacturer;\n\n4. Suspension or revocation of the license of a dealer or\n\nrefusal to renew the license of the dealer by the Oklahoma New Motor\n\nVehicle Commission;\n\n5. A material violation of any of the provisions of the\n\nRecreational Vehicle Franchise Act by a dealer; or\n\n6. The dealer becomes insolvent, is bankrupt, or makes an\n\nassignment for the benefit of creditors.","path":["OK Code","Title 47"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os47.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"5e8157535f839873344b35cde48a39116fe6c15e9a06975f686920c2d2f6a74a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-47-47-596.4","next":"us-ok/okla.-stat.-tit.-47-47-596.6"},"notice":"GroundRules: Original legal text. Not legal advice."}