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'Substantial Change' Laws = Substantial Confusion

Law360 (January 9, 2009, 12:00 AM EST) -- Attorneys and business people in the franchise and manufacturer/dealer area are familiar with statutory restrictions on a franchisor’s or manufacturer’s ability to terminate a franchisee or dealer beyond what the terms of the relevant contract provide.

Statutes such as franchise relationship laws, which exist in 17 states, and laws regulating relationships between manufacturers and their independent dealers, such as the motor vehicle dealer laws that exist in almost every state, often require statutorily defined “good cause,” and notice and an opportunity to cure, before an agreement...
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