Section 13-14-307.5 - Termination, cancellation, or nonrenewal of a recreational vehicle franchise agreement(1) This section applies only to a recreational vehicle franchisee's termination, cancellation, or nonrenewal of: (a) a recreational vehicle franchise; or(b) a recreational vehicle line-make.(2)(a) A recreational vehicle franchisee may, at any time and with or without good cause, terminate, cancel, or not renew its recreational vehicle franchise agreement or a recreational vehicle line-make by giving 30 days' prior written notice to the recreational vehicle franchisor.(b) A franchisee has the burden of showing that a termination, cancellation, or nonrenewal is for good cause.(c) Good cause for a franchisee's termination, cancellation, or nonrenewal is considered to exist if: (i) the franchisor is convicted of or enters a plea of nolo contendere to a felony;(ii) the business operations of the franchisor are: (B) closed for 10 consecutive business days, unless the closing is due to an act of God, a strike, a labor difficulty, or another cause over which the franchisor has no control;(iii) the franchisor makes a misrepresentation that materially and adversely affects the business relationship with the recreational vehicle franchisee;(iv) a material violation of this chapter is not cured within 30 days after the franchisee gives 30 days' written notice of the violation to the recreational vehicle franchisor; or(v) the recreational vehicle franchisor: (B) declares bankruptcy; or(C) makes an assignment for the benefit of creditors.(3) If the franchisee terminates, cancels, or does not renew the recreational vehicle franchise agreement or line-make for cause, the franchisor shall, at the franchisee's election and within 45 days after termination, cancellation, or nonrenewal, repurchase: (a)(i) all new, unaltered recreational vehicles, including demonstrators, that the franchisee acquired from the franchisor within 18 months before the date of the termination, cancellation, or nonrenewal; and(ii) for a repurchase price equal to 100% of the original net invoice cost, including transportation, reduced by: (A) any applicable rebates and discounts to the franchisee; and(B) the cost to repair any damage to a repurchased recreational vehicle, if the vehicle is damaged after delivery to the franchisee but before repurchase occurs;(b)(i) all undamaged accessories and proprietary parts sold by the recreational vehicle franchisor to the franchisee within one year before termination, cancellation, or nonrenewal, if accompanied by the original invoice; and(ii) for a repurchase price equal to 100% of the original net invoice cost, plus an additional 5% of the original net invoice cost to compensate the franchisee for packing and shipping the returned accessories and parts to the franchisor; and(c)(i) any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery that: (A) the franchisee purchased: (I) from the franchisor within five years before termination, cancellation, or nonrenewal; and(II) at the franchisor's request or because of the franchisor's requirement; and(B) are no longer usable in the normal course of the franchisee's ongoing business, as the franchisee reasonably determines; and(ii) for a repurchase price equal to 100% of the original net cost that the franchisee paid, plus any applicable shipping charges and sales taxes.(4) A recreational vehicle franchisor shall pay the franchisee all money due under Subsection (3) within 30 days after the franchisor's receipt of the repurchased items.Enacted by Chapter 33, 2010 General Session .