(a) (1) If a dealer desires to make a transfer in ownership by sale of the business assets, stock transfer, or any other method, the dealer shall give a manufacturer or distributor that has entered into a dealer agreement with the dealer written notice at least 10 business days before the transfer, including all supporting documentation as may be reasonably required by the manufacturer or distributor to determine whether an objection to the transfer may be made. (2) A manufacturer or distributor may not object to the proposed transfer of ownership unless the prospective transferee: (i) Has been terminated for cause by the manufacturer or distributor; (ii) Has been convicted of a felony or any crime of moral turpitude; (iii) Lacks any dealer license required by law; (iv) Lacks an active line of credit sufficient to purchase the manufacturer's or distributor's product; or (v) Has undergone bankruptcy, insolvency, a general assignment for the benefit of creditors, or the appointment of a receiver, trustee, or conservator to take possession of the transferee's business property. (b) (1) If the manufacturer or distributor objects to a proposed change of ownership, the manufacturer or distributor shall give written notice to the dealer within 7 business days after receipt of the dealer's notification and complete documentation. (2) If the manufacturer or distributor does not give timely notice of the objection, the transfer shall be deemed approved. (c) (1) A dealer shall have an opportunity to designate, in writing, a family member as a successor to the dealer's business in the event of death, incapacity, or retirement of the dealer. (2) A manufacturer or distributor may object to the successor within 10 business days after receipt of the dealer's succession plan only if the successor: (i) Was convicted of a felony or crime of moral turpitude; (ii) Declared bankruptcy or insolvency within the previous 10 years; (iii) Lacks an active line of credit sufficient to purchase the manufacturer's or distributor's product; (iv) Lacks any dealer's license required by law; or (v) Would cause or has caused a breach of the dealer agreement.
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