ORS 650.340
Termination, cancellation or failure to renew

  • notice
  • grounds

(1)

Without good cause, a grantor may not:

(a)

Terminate, cancel or fail to renew a dealership agreement.

(b)

During the term of a dealership agreement, take an action that has a substantial adverse effect on a dealer’s ability to sell or lease recreational vehicles, including changing the dealer’s area of sales responsibility.

(2)

A grantor shall give a dealer at least 120 days’ written notice of termination or cancellation of or failure to renew the dealer’s dealership agreement.

(3)

In a notice of termination, cancellation or failure to renew, the grantor shall state:

(a)

The reasons for the termination, cancellation or failure to renew;

(b)

That the dealer has 30 days from the dealer’s receipt of the notice to notify the grantor in writing of the dealer’s intent to cure any deficiencies that formed the basis for the termination, cancellation or failure to renew;

(c)

That, if the dealer notifies the grantor as provided in paragraph (b) of this subsection, the dealer has 120 days from the dealer’s receipt of the notice of termination, cancellation or failure to renew within which to cure the deficiencies;

(d)

That, upon a written request by the dealer showing good cause for an extension of the 120-day period, the grantor may give the dealer up to an additional 60 days within which to cure the deficiencies; and

(e)

That, if the dealer cures the deficiencies, the grantor will rescind the notice of termination, cancellation or failure to renew.

(4)

If a dealer that notifies a grantor of the dealer’s intent to cure the deficiencies on which a grantor based a termination, cancellation or failure to renew cures the deficiencies within the time prescribed by the grantor, the grantor shall rescind the notice of termination, cancellation or failure to renew.

(5)

Subsections (2) to (4) of this section do not apply if the reason for the termination, cancellation or failure to renew is the dealer’s bankruptcy, insolvency or assignment of assets for the benefit of creditors.

(6)

Notwithstanding subsection (2) of this section, a termination or cancellation of or failure to renew a dealership agreement:

(a)

Takes effect 30 days after the dealer receives notice of termination, cancellation or failure to renew and the grounds for termination, cancellation or failure to renew is:

(A)

A felony conviction of the dealer or a principal owner of the dealer;

(B)

The closing of the dealership for 10 consecutive business days, except if the closing is due to:
(i)
An act of God;
(ii)
A strike, lockout or other labor dispute;
(iii)
A scheduled seasonal or holiday closing; or
(iv)
A cause over which the dealer has no control; or

(C)

Suspension or revocation of or failure to renew the dealer’s certificate under ORS 822.020 (Issuance of certificate).

(b)

Takes effect 31 days after the dealer receives the notice of termination, cancellation or failure to renew if:

(A)

The dealer did not notify the grantor as provided in subsection (3)(b) of this section; and

(B)

On the 31st day after receiving the notice of termination, cancellation or failure to renew, the dealer does not possess new recreational vehicles from the grantor that the dealer has not sold or leased to a consumer.

(7)

A dealer may cancel a dealership agreement by giving 30 days’ written notice of cancellation to the grantor. [2003 c.377 §5]

Source: Section 650.340 — Termination, cancellation or failure to renew; notice; grounds, https://www.­oregonlegislature.­gov/bills_laws/ors/ors650.­html.

650.005
Definitions for ORS 650.005 to 650.100
650.010
Franchise sellers required to maintain books and records
650.015
When franchise sale or offer for sale is made in this state
650.020
Liability of franchise seller
650.050
Rules
650.055
General duties and powers of director
650.057
Orders issued under ORS 650.055
650.060
Investigative powers of director
650.065
Injunctive relief
650.070
Director as agent for service of process
650.075
Manner of executing service of process
650.080
When personal service of process required
650.085
Other civil or criminal remedies unaffected
650.095
Civil penalties
650.100
Disposition of civil penalties
650.120
Definitions for ORS 650.120 to 650.170
650.123
Use of protected dealer data
650.130
Prohibited conduct by manufacturer, distributor or importer
650.132
Prohibition of coerced sales of extended service contracts, extended maintenance plans or guaranteed asset protection waivers
650.133
Constructing, altering or remodeling dealer facility
650.140
Good cause required to terminate dealer franchise
650.145
Compensation due dealer upon termination of franchise
650.150
Enjoining establishment of certain franchises or relocation of existing dealership in same market area
650.153
Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer
650.155
Liability of manufacturer for damages to vehicles before delivery to carrier
650.158
Predelivery preparation and warranty service
650.161
Compensation for repairs to vehicles subject to recall
650.162
Transfer, assignment or sale of interest in dealership or franchise
650.165
Prohibited franchise conditions
650.167
Violation of ORS 650.140 or 650.150 as irreparable injury
650.170
Dealer’s remedy
650.200
Definitions for ORS 650.200 to 650.250
650.205
Prohibited conduct by franchisor
650.210
Rights and prohibitions governing relationship between franchisor and franchisee
650.215
Prohibited conduct in offer, sale or purchase of franchise
650.220
Consent of franchisor to sale, assignment or transfer of franchise
650.225
Death of franchisee
650.230
Transfer of franchise to corporation in which franchisee has controlling interest
650.235
Franchisor prohibited from requiring operation of service station in excess of 16 hours per day
650.240
When transfer of motor fuel a sale in commerce
650.245
Principle of good faith
650.250
Injunctive relief or damages
650.300
Definitions for ORS 650.300 to 650.480
650.310
Good cause
650.320
Dealership agreement
650.330
Comparable terms and conditions
650.340
Termination, cancellation or failure to renew
650.350
Dealer’s rights upon termination, cancellation or failure to renew
650.360
Coercion prohibited
650.370
Transfer by dealer
650.380
Dealer’s successor
650.390
Dealer compensation for warranty service
650.400
Recalls
650.410
Dealer’s warranty obligations
650.420
Required disclosures
650.430
Damaged or defective vehicles
650.440
Grantor’s ownership, operation or control of dealership
650.450
Indemnification
650.460
Indemnification
650.470
Remedies
650.480
Remedies
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