PARRIS N. GLENDENING, Governor                             H.B. 1214

(I) THE MANUFACTURER, DISTRIBUTOR, OR FACTORY BRANCH
MAY STATE ITS OBJECTIONS TO THE DESIGNATION OF A PARTICULAR QUALIFIED
PERSON TO BE A SUCCESSOR TO A DEALERSHIP AND MAY PRESENT EVIDENCE TO
DEMONSTRATE THAT THE DESIGNATION OF THE QUALIFIED PERSON IS
UNREASONABLE; AND

(II) THE DEALER AND THE QUALIFIED PERSON MAY PROVIDE
EVIDENCE TO REBUT ANY OBJECTIONS MADE BY THE MANUFACTURER,
DISTRIBUTOR, OR FACTORY BRANCH AND DEMONSTRATE THAT THE DESIGNATION
OF THE QUALIFIED PERSON IS REASONABLE.

(2) IF THE HEARING OFFICER DETERMINES THAT THE DESIGNATION OF
THE QUALIFIED PERSON IS:

(I) REASONABLE UNDER THE CIRCUMSTANCES, THE HEARING
OFFICER SHALL FIND IN FAVOR OF THE DEALER AND THE DESIGNATION OF THE
QUALIFIED PERSON AS A SUCCESSOR TO THE DEALERSHIP SHALL BE GIVEN EFFECT
IN THE EVENT OF THE DEATH OR INCAPACITY OF THE DEALER; OR

(II) UNREASONABLE UNDER THE CIRCUMSTANCES, THE HEARING
OFFICER SHALL FIND IN FAVOR OF THE MANUFACTURER, DISTRIBUTOR, OR
FACTORY BRANCH AND THE DESIGNATION OF THE QUALIFIED PERSON AS A
SUCCESSOR TO THE DEALERSHIP MAY NOT BE GIVEN EFFECT.

(3) AN AGGRIEVED PARTY TO A HEARING UNDER THIS SUBSECTION
MAY APPEAL THE FINDING OF THE HEARING OFFICER AS PROVIDED IN § 12-209 OF
THIS ARTICLE.

(A) (1) A DESIGNATED FAMILY MEMBER OF A DECEASED OR
INCAPACITATED DEALER MAY SUCCEED THE DEALER IN THE OWNERSHIP OR
OPERATION OF THE DEALERSHIP UNDER THE EXISTING FRANCHISE AGREEMENT IF
THE DESIGNATED FAMILY MEMBER:

(I) GIVES THE MANUFACTURER, DISTRIBUTOR, OR FACTORY
BRANCH WRITTEN NOTICE OF THE DESIGNATED FAMILY MEMBER'S INTENTION TO
SUCCEED TO THE DEALERSHIP WITHIN 120 DAYS AFTER THE DEALER'S DEATH OR
INCAPACITY;

(II) AGREES TO BE BOUND BY ALL OF THE TERMS AND
CONDITIONS OF THE FRANCHISE AGREEMENT; AND

(III) MEETS THE CURRENT CRITERIA THAT THE MANUFACTURER,
DISTRIBUTOR, OR FACTORY BRANCH GENERALLY APPLIES IN QUALIFYING
DEALERS.

(2) A MANUFACTURER, DISTRIBUTOR, OR FACTORY BRANCH MAY
REFUSE TO HONOR THE EXISTING FRANCHISE AGREEMENT WITH THE DESIGNATED
FAMILY MEMBER ONLY FOR GOOD CAUSE.

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