CONNECTICUT STATUTES AND CODES
Sec. 42-133x. Effects of a franchise termination, cancellation or nonrenewal.
Sec. 42-133x. Effects of a franchise termination, cancellation or nonrenewal.
(a) In the event of a termination, cancellation or nonrenewal under subdivision (2) of
subsection (b) of section 42-133v:
(1) If the dealer is leasing the dealership facilities from a lessor other than the manufacturer or distributor, or owns the dealership facilities, the manufacturer or distributor
shall pay a reasonable rent to the dealer in accordance with and subject to subdivision
(2) of this subsection.
(2) Such reasonable rent shall be paid only to the extent that the dealership premises
are recognized in the franchise and only if they are: (A) Used solely for performance
in accordance with the franchise, and (B) not substantially in excess of those facilities
recommended by the manufacturer or distributor.
(3) If the facilities are owned by the dealer, the manufacturer or distributor will
either: (A) Locate a purchaser who will offer to purchase the dealership facilities at a
reasonable price, or (B) locate a lessee who will offer to lease the premises for a reasonable term at a reasonable rent, or (C) failing the foregoing, lease the dealership facilities
at a reasonable rent for two years.
(4) If the facilities are leased by the dealer, the manufacturer or distributor will
either: (A) Locate a tenant satisfactory to the lessor, who will sublet or assume the
balance of the lease, or (B) arrange with the lessor for the cancellation of the lease
without penalty to the dealer, or (C) failing the foregoing, lease the dealership facilities
at a reasonable rate for two years.
(5) The manufacturer or distributor shall not be obligated to provide assistance
under this section if the dealer: (A) Fails to accept a bona fide offer from a prospective
purchaser, sublessee or assignee, or (B) refuses to execute a settlement agreement with
the lessor if such agreement would be without cost to the dealer, or (C) fails to make a
written request for assistance under this section within one month of the termination,
cancellation or nonrenewal.
(b) If, in any action for damages under this section, the manufacturer or distributor
fails to prove that the manufacturer or distributor has acted in good faith or that there
was good cause for the franchise termination, cancellation or nonrenewal, then the manufacturer or distributor may terminate, cancel or fail to renew the franchise upon payment
to the motor vehicle dealer of an amount equal to the value of the dealership as an
ongoing business location as agreed by the parties or, lacking agreement, as determined
by the court.
(P.A. 82-445, S. 7, 15.)
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