CHAPTER 79
HOUSE BILL No. 2742
An Act concerning certain equipment
dealerships; relating to manufacturer agreements;
amending K.S.A. 16-1204, 16-1307, 16-1309,
16-1407 and 16-1409 and repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 16-1204 is hereby amended to read as
follows:
16-1204. (a) Except as otherwise provided in this section, a
farm equip-
ment manufacturer shall provide a farm equipment dealer at least
ninety-
days' prior written notice of termination, cancellation or
nonrenewal of
the dealership agreement. The notice shall state all reasons
constituting
good cause for termination, cancellation or nonrenewal and shall
provide
that the dealer has 60 days in which to cure any claimed
deficiency. If
the deficiency is rectified within 60 days the notice shall be
void. The
notice and right to cure provisions under this section shall not
apply if
the reason for termination, cancellation or nonrenewal is for any
reason
set forth in subsections (a) through (h) of K.S.A. 16-1203 and
amendments
thereto.
(b) In the event that a farm equipment manufacturer has
contractual
authority to approve or deny a request by a farm equipment
dealer to sell
or transfer any portion the dealer's business ownership to
another party
or to enter into an agreement to operate the dealership with
another party,
the manufacturer shall approve or deny such a request within 90
days
after receiving the request. If the manufacturer has neither
approved nor
denied the request within 90 days, the request shall be deemed
approved.
The farm equipment dealer's request shall include the reasonable
financial
information, personal background, character references and work
histo-
ries as required by the manufacturer to render such a
determination. In
the event the manufacturer denies the request, the manufacturer
shall
provide the farm equipment dealer with a written notice of its
determi-
nation with the stated reasons for the denial.
Sec. 2. K.S.A. 16-1307 is hereby amended to read as
follows: 16-
1307. (a) Except as otherwise provided in this section, a
supplier shall
provide a retailer at least 90 days' prior notice of termination,
cancellation,
or nonrenewal of the contract. The notice shall state all reasons
consti-
tuting good cause for termination, cancellation or nonrenewal and
shall
provide that the dealer has 60 days in which to cure any claimed
defi-
ciency. If the deficiency is rectified within 60 days, the notice
shall be
void. The notice and right to cure provisions under this section
shall not
apply if the reason for termination, cancellation or nonrenewal is
for any
reason set forth in subsections (a) through (h) of K.S.A.
16-1306.
(b) In the event that a ``supplier'' of outdoor power
equipment has
contractual authority to approve or deny a request by a
``retailer'' to sell
or transfer any portion of the retailer's business ownership to
another
party or to enter into an agreement to operate the dealership
with another
party, the supplier shall approve or deny the request within 90
days after
receiving such a request. If the supplier has neither approved
nor denied
the request within 90 days, the request shall be deemed
approved. The
retailer's request shall include the reasonable financial
information, per-
sonal background, character references and work histories as
required by
the supplier to render such a determination. In the event the
supplier
denies the request, the supplier shall provide the retailer with
a written
notice of its determination with the stated reasons for the
denial.
Sec. 3. K.S.A. 16-1309 is hereby amended to read as
follows: 16-
1309. The Except for subsection (b) of K.S.A.
16-1307, the provisions of
this act shall apply to all continuing and nonrenewable contracts,
and all
other contracts entered into, renewed, amended, assigned or
transferred
by a supplier to a transferee on or after July 1, 1991, and shall
apply only
to outdoor power equipment and repair parts purchased after the
effec-
tive date of this act. The provisions of subsection (b) of
K.S.A. 16-1307
shall apply only to those contracts executed after July 1,
1998. Any con-
tract in force and effect on July 1, 1991, or with respect to
the provisions
of subsection (b) of K.S.A. 16-1307 and amendments thereto, on
July 1,
1998, which by its own terms will terminate on a date
certain subsequent
thereto shall be governed by the law as it existed prior to this
act unless
renewed, amended, assigned or transferred as described above.
Sec. 4. K.S.A. 16-1407 is hereby amended to read as
follows: 16-
1407. (a) Except as otherwise provided in this section, a
supplier shall
provide a retailer at least 90 days' prior notice of termination,
cancellation,
or nonrenewal of the contract. The notice shall state all reasons
consti-
tuting good cause for termination, cancellation or nonrenewal and
shall
provide that the dealer has 60 days in which to cure any claimed
defi-
ciency. If the deficiency is rectified within 60 days, the notice
shall be
void. The notice and right to cure provisions under this section
shall not
apply if the reason for termination, cancellation or nonrenewal is
for any
reason set forth in subsections (a) through (h) of K.S.A.
16-1406.
(b) In the event that a supplier of lawn and garden
equipment has
contractual authority to approve or deny a request by a retailer
to sell or
transfer any portion of the retailer's business ownership to
another party
or to enter into an agreement to operate the dealership with
another party,
the supplier shall approve or deny the request within 90 days of
receiving
such a request. If the supplier has neither denied nor approved
the request
within 90 days, the request shall be deemed approved. The
retailer's re-
quest shall include the reasonable financial information,
personal back-
ground, character references and work histories as required by
the sup-
plier to render such a determination. In the event the supplier
denies the
request, the supplier shall provide the retailer with a written
notice of its
determination with the stated reasons for the denial.
Sec. 5. K.S.A. 16-1409 is hereby amended to read as
follows: 16-
1409. The Except for the provisions of
subsection (b) of K.S.A. 16-1407,
the provisions of this act shall apply to all continuing and
nonrenewable
contracts, and all other contracts entered into, renewed, amended,
as-
signed or transferred by a supplier to a transferee on or after
July 1, 1992,
and shall apply only to lawn and garden equipment and repair parts
pur-
chased after the effective date of this act. The provisions of
subsection (b)
of K.S.A. 16-1407 shall apply only to those contracts executed
after July
1, 1998. Any contract in force and effect on July 1,
1992, or with respect
to subsection (b) of K.S.A. 16-1407, on July 1, 1998, which
by its own
terms will terminate on a date certain subsequent thereto shall be
gov-
erned by the law as it existed prior to this act unless renewed,
amended,
assigned or transferred as described above.
Sec. 6. K.S.A. 16-1204, 16-1307, 16-1309, 16-1407 and
16-1409 are
hereby repealed.
Sec. 7. This act shall take effect and be in force from
and after its
publication in the statute book.
Approved April 7, 1998
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