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Maryland Code, Commercial Law § 19-103

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) A supplier may not directly or through an officer, agent, or employee terminate, cancel, fail to renew, or substantially change the competitive circumstances of a contract without good cause.

(b)(1) Except as provided in paragraph (2) of this subsection, a supplier who terminates, cancels, fails to renew, or substantially changes the competitive circumstances of a contract with good cause is not required to provide any notice or the right to cure a deficiency to a dealer.

(2) If a supplier terminates, cancels, fails to renew, or substantially changes the competitive circumstances of a contract based upon the dealer's failure to capture the share of the market required in the contract and the supplier has worked with the dealer for a minimum of 12 months to gain the desired market share, the supplier shall provide a dealer with at least 90 days' written notice of the termination of the agreement and a 60 day right to cure.

(c) Notwithstanding any agreement to the contrary, a dealer who terminates a contract with a supplier shall notify the supplier of the termination within 90 days prior to the effective date of the termination.

(d) Each notification required under this section shall:

(1) Be in writing;

(2) Contain:

(i) A statement of intention to terminate the contract;

(ii) A statement of the reasons for the termination; and

(iii) The date on which the termination takes effect; and

(3) Be delivered to the supplier or dealer by:

(i) Certified mail; or

(ii) Personal delivery.

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Cite this article: FindLaw.com - Maryland Code, Commercial Law § 19-103 - last updated January 01, 2025 | https://codes.findlaw.com/md/commercial-law/md-code-coml-sect-19-103/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

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