59.1-352.3 - Notice of termination of agreements. - Virginia Statutes

§ 59.1-352.3. Notice of termination of agreements.

A. No supplier, directly or through an officer, agent, or employee, mayterminate, cancel, fail to renew, or substantially change the competitivecircumstances of an agreement without good cause.

B. Notwithstanding any agreement to the contrary, a dealer who terminates anagreement with a supplier shall notify the supplier of the termination notless than 90 days prior to the effective date of the termination.

C. A supplier shall provide a dealer with at least 90 days' written notice oftermination of the agreement and a 60-day right to cure the deficiency. Ifthe deficiency is cured within the allotted time, the notice is void. In thecase where cancellation of an agreement is based upon the dealer's failure tocapture the share of the market required in the agreement, a minimum 12-monthperiod of time shall have existed where the supplier has worked with thedealer to gain the desired market share. The notice shall state all reasonsconstituting good cause.

D. Notification under this section shall be in writing and shall be bycertified mail or personally delivered to the recipient. It shall contain allof the following:

1. A statement of intention to terminate the dealership;

2. A statement of the reasons for the termination; and

3. The date on which the termination takes effect.

E. The notice and right to cure is not required if the reason fortermination, cancellation or nonrenewal is for good cause, as defined in §59.1-352.1.

(2002, c. 898; 2003, c. 797.)