(Solution) - University Motors a West Virginia business entered into a fran -(2025 Original AI-Free Solution)

Paper Details

University Motors, a West Virginia business, entered into a franchise agreement with General Motors Corp. (GMC). The agreement specified that University Motors would require approval from GMC if it wanted to sell another line of vehicles. University Motors began selling a Nissan line of vehicles without first obtaining GMC approval. GMC sought to terminate the franchise and hand delivered a letter to University Motors stating that the franchise would end 90 days from receipt of the letter. GMC stated that the reason for the termination was the new vehicle line and various deficiencies in University Motor?s sales. University Motors filed suit to prevent termination of the franchise, claiming that GMC had violated a West Virginia statute that required a franchisor to deliver a termination letter by certified mail and to give the franchisee 180 days to cure the problem. The statute also required that the franchisor have a good faith reason for terminating because of poor sales or service performance. Should GMC be permitted to terminate University Motors? Why, or why not?