Section 19-103 - Dealer contracts - Cancellation, nonrenewal, substantial change. - Maryland Statutes

§ 19-103. Dealer contracts - Cancellation, nonrenewal, substantial change.
 

(a)  Prohibited without good cause.- A supplier may not directly or through an officer, agent, or employee terminate, cancel, fail to renew, or substantially change the competitive circumstances of a contract without good cause. 

(b)  When notice or right to cure required.-  

(1) Except as provided in paragraph (2) of this subsection, a supplier who terminates, cancels, fails to renew, or substantially changes the competitive circumstances of a contract with good cause is not required to provide any notice or the right to cure a deficiency to a dealer. 

(2) If a supplier terminates, cancels, fails to renew, or substantially changes the competitive circumstances of a contract based upon the dealer's failure to capture the share of the market required in the contract and the supplier has worked with the dealer for a minimum of 12 months to gain the desired market share, the supplier shall provide a dealer with at least 90 days' written notice of the termination of the agreement and a 60 day right to cure. 

(c)  Notification of supplier.- Notwithstanding any agreement to the contrary, a dealer who terminates a contract with a supplier shall notify the supplier of the termination within 90 days prior to the effective date of the termination. 

(d)  Notification - Contents.- Each notification required under this section shall: 

(1) Be in writing; 

(2) Contain: 

(i) A statement of intention to terminate the contract; 

(ii) A statement of the reasons for the termination; and 

(iii) The date on which the termination takes effect; and 

(3) Be delivered to the supplier or dealer by: 

(i) Certified mail; or 

(ii) Personal delivery. 
 

[2005, ch. 433, § 2.]