Home Table of Contents

§ 19-102. Good cause

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 19. Equipment Dealer Contract Act (Refs & Annos)
Subtitle 1. Definitions; General Provisions (Refs & Annos)
MD Code, Commercial Law, § 19-102
§ 19-102. Good cause
Good cause exists in any of the following circumstances:
(1) The filing of a petition against the dealer to commence:
(i) A receivership proceeding; or
(ii) A bankruptcy proceeding;
(2) The dealer has made an intentional misrepresentation with the intent to defraud the supplier;
(3) The dealer defaults under a chattel mortgage or other security agreement between the dealer and the supplier or the dealer revokes or discontinues a guarantee of a present or future obligation of the dealer to the supplier;
(4) The closeout or sale of a substantial part of the business of a dealer related to the handling of the products of the supplier;
(5) The commencement of procedures to dissolve or liquidate the dealer if the dealer is a partnership or corporation;
(6) A change, without the prior written approval of the supplier, that shall not be unreasonably withheld, in the location of the principal place of business of the dealer or additional locations set forth in the agreement;
(7) The withdrawal of an individual proprietor, partner, major shareholder, or manager of the dealership, or a substantial reduction in interest of a partner or major shareholder, without the prior written consent of the supplier;
(8) The revocation or discontinuance of any guarantee of the present or future obligations of the dealer to the supplier;
(9) The dealer fails to operate in the normal course of business for 7 consecutive business days or otherwise abandons the business;
(10) The guilty plea or conviction of a felony of a dealer affecting the relationship between the dealer and supplier; or
(11) The dealer transfers an interest in the dealership or a person with a substantial interest in the ownership or control of the dealership, including an individual proprietor, partner, or major shareholder, withdraws from the dealership or dies, or a substantial reduction occurs in the interest of a partner or major shareholder in the dealership.


Added by Acts 2005, c. 433, § 2, eff. July 1, 2005. Amended by Acts 2006, c. 44, § 1, eff. April 8, 2006.
MD Code, Commercial Law, § 19-102, MD COML § 19-102
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document