Definitions

As used in this article, the term: (1) “Agreement” means a commercial relationship, either written or oral, between a supplier and a multiline dealer pursuant to which the multiline dealer has been authorized to distribute one or more of the supplier’s heavy equipment products and attachments and repair parts therefor and in connection therewith to use a trade name, trademark, service mark, logo type, or advertising or other commercial symbol. (2) “Heavy equipment” means self-propelled, self-powered, or pull-type equipment and machinery, including diesel engines, weighing 5,000 pounds or more and primarily employed for construction, industrial, maritime, mining, or forestry uses. The term “heavy equipment” shall not include: (A) Motor vehicles requiring registration and certificates of title; (B) Farm machinery, equipment, and implements; or (C) Equipment that is “consumer goods” within the meaning of Code Section 11-9-102. (3) “Multiline dealer” means a person in Georgia meeting all the following requirements: 499 10-1-732 (A) Who is engaged in the business of selling or leasing heavy equipment at retail; (B) Who customarily maintains a total inventory valued at over $250,000.00 of new heavy equipment and attachments and repair parts therefor; (C) Who provides repair services for the heavy equipment sold; (D) Who has agreements with at least six different suppliers; and (E) Whose retail sales volume of heavy equipment purchased from a single supplier, under all agreements with that supplier, is not greater than 75 percent of such person’s total retail sales volume of heavy equipment during: (i) The 12 month period immediately prior to July 1, 1989, if an agreement or agreements between the supplier and such person is or are in effect on July 1, 1989; or (ii) The 12 month period immediately following the date the initial agreement between the supplier and such person is entered into, or portion thereof in the event of cancellation, termination, or transfer of the business prior to the end of such 12 month period, if such initial agreement is entered into subsequent to July 1, 1989. (4) “Person” means a natural person, corporation, partnership, trust, agency, or other entity as well as the individual officers, directors, or other persons in active control of the activities of each such entity. The term “person” also includes heirs, assigns, personal representatives, and guardians. (5) “Supplier” means every person, including any agent of such person or any authorized broker acting on behalf of that person, that enters into an agreement with a multiline dealer. History. Code 1981, § 10-1-731, enacted by Ga. L. 1993, p. 1585, § 3; Ga. L. 2001, p. 362, § 26. 10-1-732. Unilateral amendment, cancellation, termination, refusal to renew, or causing resignation from agreement for good cause. (a) Notwithstanding the terms, provisions, or conditions of any agreement, no supplier shall unilaterally amend, cancel, terminate, or refuse to continue to renew any agreement, or unilaterally cause a dealer to resign from an agreement, unless the supplier has first complied with the provisions of this article and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuance, 500 10-1-732 SELLING/OTHER TRADE PRACTICES 10-1-732 or causing a resignation. The term “good cause” shall not include the sale or purchase of a supplier. The term “good cause” shall be limited to withdrawal by the supplier, its successors, and assigns of the sale of its products in Georgia or multiline dealer performance deficiencies including, but not limited to, the following: (1) Bankruptcy or receivership of the multiline dealer; (2) Assignment for the benefit of creditors or similar disposition of the assets of the dealer, other than the creation of a security interest in the assets of a multiline dealer for the purpose of securing financing in the ordinary course of business; or (3)(A) Failure by the multiline dealer to comply substantially, without reasonable cause or justification, with any reasonable and material requirement imposed upon such dealer in writing by the supplier, including, but not limited to, a substantial failure by a multiline dealer to: (i) Maintain a sales volume or trend of his supplier’s product line or lines comparable to that of other similarly situated dealers of that product line; or (ii) Render services comparable in quality, quantity, or volume to the services rendered by other dealers of the same product or product line similarly situated. (B) In any determination as to whether a multiline dealer has failed to comply substantially, without reasonable excuse or justification, with any reasonable and material requirement imposed upon such dealer by the supplier, consideration shall be given to the relative size, population, geographical location, number of retail outlets, and demand for the products applicable to the market area of the multiline dealer in question and to comparable market area. (b) No supplier shall be required to give notice or show good cause pursuant to subsection (a) of this Code section to amend unilaterally agreements with multiline dealers to comply with federal or state law or, where not inconsistent with this article, to amend uniformly agreements as to all multiline dealers of the supplier in question in all states in which the supplier is marketing its products. (c) In any dispute as to whether a supplier has acted with good cause as required by this Code section, the supplier shall have the burden of proof to establish that good cause existed. History. Code 1981, § 10-1-732, enacted by Ga. L. 1993, p. 1585, § 3. 501 10-1-733 10-1-733. Amendment, termination, cancellation, or nonrenewal of agreement.