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Mich. Comp. Laws § 445.1570

Notice of termination, cancellation, nonrenewal, or discontinuance of dealer agreement

Applied in 6 court decisions — leading case Lafontaine Saline, Inc v. Chrysler Group LLC (2014)

Most recently applied in Board of Trustees of the City of Pontiac v. City of Pontiac (June 2018)

1981, Act 118, Imd

How often courts cite this section

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citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

Sec. 10. Notwithstanding any agreement, prior to the termination, cancellation, nonrenewal, or discontinuance of any dealer agreement, the manufacturer or distributor shall furnish notice of the termination, cancellation, nonrenewal, or discontinuance to the new motor vehicle dealer as follows: (a) Except as provided in subdivision (c) or (d), notice shall be made not less than 90 days prior to the effective date of the termination, cancellation, nonrenewal, or discontinuance. (b) Notice shall be by certified mail to the new motor vehicle dealer and shall contain the following: (i) A statement of intention to terminate, cancel, not renew, or discontinue the dealer agreement. (ii) A statement of the reasons for the termination, cancellation, nonrenewal, or discontinuance. (iii) The date on which the termination, cancellation, nonrenewal, or discontinuance takes effect. (c) Notwithstanding subdivision (a), notice shall be made not less than 15 days prior to the effective date of the termination, cancellation, nonrenewal, or discontinuance for any of the following reasons: (i) Insolvency of the new motor vehicle dealer, or the filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law. (ii) Failure of the new motor vehicle dealer to conduct his or her customary sales and service operations during his or her customary business hours for 7 consecutive business days. (iii) Conviction of the new motor vehicle dealer or its principal owners of a crime, but only if the crime is punishable by imprisonment in excess of 1 year under the law under which the dealer was convicted, or the crime involved theft, dishonesty, or false statement regardless of the punishment. (iv) Revocation of any license under which the new motor vehicle dealer is required to have to operate a dealership. (v) A fraudulent misrepresentation by the new motor vehicle dealer to the manufacturer or distributor, which is material to the dealer agreement. (d) Notwithstanding subdivision (a), notice shall be made not less than 12 months prior to the effective date of a termination, cancellation, nonrenewal, or discontinuance if a manufacturer or distributor discontinues production of the new motor vehicle dealer's product line or discontinues distribution of the product line in this state.

Official source: Michigan Legislature. Reproduced from public-domain Michigan statutes; confirm against the official source for the current text. Not legal advice.