1. (1) A dealership agreement shall:

   1. (a) Contain a provision that the law of this state governs the agreement;
   2. (b) Assign the dealer an area of sales responsibility;
   3. (c) If the dealer is an individual, include the designation of a member of the dealer’s family to succeed to the dealer’s interests in the dealer’s business and dealership agreement upon the dealer’s death, incapacity or retirement; and

   4. (d) Inform the dealer of the dealer’s obligations:

      1. (A) To perform warranty service;
      2. (B) To prepare products for delivery to the consumer; and
      3. (C) To deliver products to the consumer.
2. (2) Upon a dealer’s request, a grantor shall reconsider the scope of the dealer’s area of sales responsibility once a year.

3. (3) During the term of a dealership agreement, a grantor may not:

   1. (a) Change the dealer’s area of sales responsibility; or
   2. (b) Authorize another dealer to sell or lease the same line make in the area of sales responsibility.

4. (4) Subsection (3)(b) of this section does not apply if:

   1. (a) Good cause exists to authorize another dealer in the same area of sales responsibility; and
   2. (b) The area of sales responsibility will support the existing dealer and the new dealer.

[2003 c.377 §3]