407.830. Franchisor's defenses against action by franchisee. - Missouri Statutes

Franchisor's defenses against action by franchisee.

407.830. It shall be a defense for a motor vehiclefranchisor, to any action brought under sections 407.810 to407.835 by a motor vehicle franchisee, if it be shown that suchmotor vehicle franchisee has failed to substantially comply withreasonable and lawful requirements imposed by the franchise andother agreements ancillary or collateral thereto, or if the motorvehicle franchisee, or any of its officers, have been convictedof a felony relevant to business honesty or business practices,or if the motor vehicle franchisee has ceased conducting itsbusiness or has abandoned the franchise, or is insolvent as thatterm is defined in subdivision (23) of section 400.1-201, RSMo,or has filed a voluntary petition in bankruptcy, or has made anassignment for benefit of creditors, or has been the subject ofan involuntary proceeding under the federal bankruptcy act orunder any state insolvency law which is not vacated within twentydays from the institution thereof, or there has been anappointment of a receiver or other officer having similar powersfor the motor vehicle franchisee or the motor vehiclefranchisee's business who is not removed within twenty days fromhis appointment, or there has been a levy under attachment,execution or similar process which is not within ten days vacatedor removed by payment or bonding, and it shall be a defense toany action brought under sections 407.810 to 407.835 that thecomplained of conduct by a motor vehicle franchisor wasundertaken in good faith in pursuit of rights or remediesaccorded to a motor vehicle franchisor as a seller of goods or aholder of a security interest under the provisions of chapter400, RSMo.

(L. 1980 H.B. 1600 § 5)