Michigan Compiled Laws

Mich. Comp. Laws § 445.1570 (2026)

Notice of termination, cancellation, nonrenewal, or discontinuance of dealer agreement.

✓ current as of July 2026

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MOTOR VEHICLE FRANCHISE ACT

Act 118 of 1981

445.1570 Notice of termination, cancellation, nonrenewal, or discontinuance of dealer agreement.

Sec. 10.

Notwithstanding any agreement, prior to the termination, cancellation, nonrenewal, or discontinuance of any dealer agreement, the manufacturer or distributor shall furnish notice of the termination, cancellation, nonrenewal, or discontinuance to the new motor vehicle dealer as follows:

(a) Except as provided in subdivision (c) or (d), notice shall be made not less than 90 days prior to the effective date of the termination, cancellation, nonrenewal, or discontinuance.

(b) Notice shall be by certified mail to the new motor vehicle dealer and shall contain the following:

(i) A statement of intention to terminate, cancel, not renew, or discontinue the dealer agreement.

(ii) A statement of the reasons for the termination, cancellation, nonrenewal, or discontinuance.

(iii) The date on which the termination, cancellation, nonrenewal, or discontinuance takes effect.

(c) Notwithstanding subdivision (a), notice shall be made not less than 15 days prior to the effective date of the termination, cancellation, nonrenewal, or discontinuance for any of the following reasons:

(i) Insolvency of the new motor vehicle dealer, or the filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law.

(ii) Failure of the new motor vehicle dealer to conduct his or her customary sales and service operations during his or her customary business hours for 7 consecutive business days.

(iii) Conviction of the new motor vehicle dealer or its principal owners of a crime, but only if the crime is punishable by imprisonment in excess of 1 year under the law under which the dealer was convicted, or the crime involved theft, dishonesty, or false statement regardless of the punishment.

(iv) Revocation of any license under which the new motor vehicle dealer is required to have to operate a dealership.

(v) A fraudulent misrepresentation by the new motor vehicle dealer to the manufacturer or distributor, which is material to the dealer agreement.

(d) Notwithstanding subdivision (a), notice shall be made not less than 12 months prior to the effective date of a termination, cancellation, nonrenewal, or discontinuance if a manufacturer or distributor discontinues production of the new motor vehicle dealer's product line or discontinues distribution of the product line in this state.

History: 1981, Act 118, Imd. Eff. July 19, 1981

Notes of Decisions

Cited in 8 cases (2 in the last 5 years), 1986–2025 · leading case: Lafontaine Saline, Inc v. Chrysler Grp. LLC, 496 Mich. 26 (Mich. 2014).

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Lafontaine Saline, Inc v. Chrysler Grp. LLC, 496 Mich. 26 (Mich. 2014). “1568, and MCL 445.1570 each begin with the preface “Notwithstanding any agreement.”

Mt. Clemens Auto Ctr., Inc. v. Hyundai Motor Am., 844 F. Supp. 2d 804 (E.D. Mich. 2011). · cites it 4× “” Mich. Comp. Laws § 445.1570 (a). Finally, if the termination is provoked by insolvency, closure of the dealership for seven consecutive days, the dealership owner’s conviction of a felony, revocation of the dealership license, or fraudulent misrepresentation, the notice period…”

Dale Baker Oldsmobile, Inc. v. Fiat Motors of North Am., Inc., 794 F.2d 213 (6th Cir. 1986). “Mich.Comp. Laws § 445.1570(c). 2 . This exception was relied on by the Anderson's court in ruling that application of the 1978 Act *219 did not result in retrospective application of a statute to a pre-existing contract, i.”

Fred Lavery Co. v. Nissan North Am., Inc., 99 F. App'x 585 (6th Cir. 2004). · cites it 3× “1567 (1), a manufacturer may not cancel, terminate, fail to renew, or refuse to continue any dealer agreement with a new motor vehicle dealer unless the manufacturer or distributor has complied with all of the following: (a) Satisfied the notice requirements of [ Mich. Comp.…”

Ransomes Am. Corp. v. Spartan Distributors, Inc., 914 F. Supp. 183 (W.D. Mich. 1996). “§ 445.1570(c)(iv). The statute prohibits manufacturers from unreasonably withholding consent to sell, transfer or exchange a dealership to a qualified buyer only if the buyer is capable of being licensed as a new motor vehicle dealer in Michigan.”

Bd. of Trs. of the City of Pontiac v. City of Pontiac, 912 N.W.2d 195 (Mich. 2018). “19(2) ("The authority and powers granted in this section relative to bridges over navigable streams and the grant of that authority are retroactive.”

Spine Specialists of Michigan Pc v. Memberselect Ins. Co. (Mich. 2025). “1568, and MCL 445.1570 each begin with the preface “Notwithstanding any agreement” as a sign they were retroactive).”

— Mich. Comp. Laws § 445.1570(c) — 1 case

— Mich. Comp. Laws § 445.1570(c)(iv) — 1 case

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