Bill > SB377

This bill modifies the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers and Dealers Act by updating several key definitions and provisions related to equipment dealer agreements. The bill makes technical changes to terminology, such as correcting "catalogue" to "catalog", and updates statutory references. It introduces more nuanced definitions for terms like "good cause" for terminating a dealer agreement, specifying that a change in executive management does not automatically constitute good cause unless the supplier can demonstrate it would be detrimental to product representation. The bill also modifies rules around dealer agreements, including provisions that protect dealers' ability to sell competing product lines and clarify consent requirements for transferring business ownership. Specifically, it establishes that suppliers cannot unreasonably withhold consent for business transfers and must provide written explanation if a transfer is denied. For dealers who purchase a significant percentage of equipment from a single supplier (80% of new equipment and over $40 million in annual sales), the bill allows more restrictions on selling competing product lines. The legislation aims to provide clearer guidelines and protections for equipment dealers in their relationships with suppliers, with the changes set to take effect on November 1, 2025.

Business and Industry

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb377&Session=2600