The bill amends the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers and Dealers Act by updating key definitions and clarifying the conditions under which dealer agreements can be terminated. Notable changes include the replacement of the term "catalogue" with "catalog," and a more precise definition of "good cause" for termination, which now specifies that a change in executive management is not sufficient grounds for termination unless it negatively impacts the supplier's product representation. The bill also introduces new provisions regarding the notice period required for termination, mandating that suppliers provide dealers with at least 180 days' written notice, along with the reasons for termination, and allowing dealers 60 days to address any deficiencies.

Additionally, the bill outlines specific prohibited actions that suppliers may not engage in, such as coercing dealers into accepting unordered equipment and discriminating against dealers in pricing or order fulfillment. It emphasizes the need for reasonable notice before terminating agreements and establishes a process for approving or denying requests for the sale or transfer of a dealer's business, requiring suppliers to respond within 60 days and only deny consent for good cause. The bill also includes provisions for the transfer of a dealer's business in the event of their death, allowing the estate 180 days to request a transfer while delaying any termination attempts by the supplier until compliance with the new regulations. The amendments aim to promote fairness and transparency in supplier-dealer relationships and are set to take effect on November 1, 2025.

Statutes affected:
Introduced: 15-245