407.1366. Change in ownership, notice required. - Missouri Statutes

Change in ownership, notice required.

407.1366. 1. If a boat, marine, vessel, or personal watercraft dealerdesires to make a change in its ownership by the sale of the business assets,stock transfer, or otherwise, the dealer must give the manufacturer ninetydays' written notice prior to the closing including all supportingdocumentation as may be required by the manufacturer. The manufacturer shallnot refuse to agree to such proposed change or sale and may not disapprove orwithhold approval of such change or sale unless the manufacturer can show thatits decision is based on the manufacturer's reasonable criteria, which mayinclude but is not limited to the prospective transferee's businessexperience, moral character, financial qualifications, and any criminalrecord.

2. It is unlawful for any manufacturer to fail to provide a boat,marine, vessel, or personal watercraft dealer an opportunity to designate, inwriting, a member of the dealer's family as a successor to the dealership inthe event of the death, incapacity, or retirement of the boat, marine, vessel,or personal watercraft dealer. It shall be unlawful to prevent or refuse tohonor the succession to a dealership by a member of the family of thedeceased, retired or incapacitated dealer unless the manufacturer has providedto the dealer written notice of its objections. Grounds for objection shallbe lack of creditworthiness, conviction of a felony, lack of required licensesor business experience or other conditions which make such successionunreasonable under the circumstances, but the manufacturer shall bear theburden of showing the unreasonableness of such succession. However, no memberof the family may succeed to a boat, marine, vessel, or personal watercraftdealer if the succession to the boat, marine, vessel, or personal watercraftdealer involves, without the manufacturer's consent, a relocation of thebusiness or an alteration of the terms and conditions of the writtenagreement.

3. If the manufacturer rejects a proposed change or sale, themanufacturer shall give written notice of its reasons to the boat, marine,vessel, or personal watercraft dealer within sixty days after receipt of thedealer notification and complete documentation. If no such notice is given tothe boat, marine, vessel, or personal watercraft dealer, the change or saleshall be deemed approved.

(L. 2004 H.B. 1288)